Session 3.5 how agroindustries influence cocoa growers

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Information about Session 3.5 how agroindustries influence cocoa growers

Published on March 12, 2014

Author: agroforestry

Source: slideshare.net

Impact of the food-industry on the practices of cocoa producers in Cameroon 1 Sarah Langrand (Bordeaux Sciences Agro) Laurène Feintrenie (CIRAD, Yaoundé) World Conference on Agroforestry Delhi 2014

What is on the menu? • Method: how did we proceed? • The context: Cocoa in Cameroon • Market chain organization • Certification • To conclude: Take-home message 2

How did we proceed ? • Market chain analysis – Interviews • 8 food-industries • 2 certification bodies • 9 experts from public and private sectors • 73 farmers • Fieldwork – Talba (Center region) – Yaoundé and Douala 3

Cocoa in Cameroon • 5th producer of the World • Smallholders: 1.5 to 3 ha per farmer • Food-industry companies • 80% exported • 2020: 100% certified 4 Mabou et al., 2012; Barel, 2009 How do the food-industries impact the cocoa production in Cameroon?

Market chain organization 5 Middle harvest (January to June) Big harvest (July to August) Products Standard Standard Certified Price paid to the farmers < 1200 € per ton > 1200 € per ton + premium (certified) Cocoa market Closed 1 per week Buyers Middlemen Traders Quality of the production Low >20% does not have the required quality High

Finished product Cocoa-pods Beans fermented and dried Beans sorted, packaged, at the EU standard Beans fermented and dried Selling price i+1 = selling price i + charges + added value ( /ton) Farmers (Talba) Buyers (EU) 572328 Middlemen Wholesalers (Douala) Exporters (Douala) 50 1540 1730 1870 290 50 60 1200 140 80 Market chain organization 6

• Share of the export tax 7 Market chain organization 23% 13% 55% 9% ONCC CICC Fodecc SODECAO 80 euros/ton of tax

Federation of unions of GICs Unions of GICs GICs (Groupements d’initiative commune) State cooperatives 2002 2001 1985 Roles Represents all GICs within the government organization Regroup GICs, stock the cocoa and negotiate the sale contract Regroup farmers 2013 project: Cooperative Who? GIC Union GIC 1960 Disappear Market chain organization • Farmers’ organization 8

Tonsofcertifiedcocoa Certification Modified from Potts et al., 20109 Organic Fairtrade Rainforest Alliance UTZ certified

European consumer Market Certification bodies Food-industries Farmers Certified product requested Help Certification setting up project Asian consumer Food-industries Farmers Low price product request NGO impact Certification 10

Certification • Farming school – Scope statements • Maintain a variety of species • 18 cover-trees per ha • Remunerations • Premium to farmers: 20 € per ton • Added value to food-industry: 260 € per ton (vs 80 € per ton) 11

Certification body Farmers Cooperatives Buyers Yield release Verification (comparisons between production delivered and expected production) Cocoa delivery in homologated bags (logo, batch number) Certification • Traceability 12

13 Environmental •Limitation of pesticides •Maintenance Agroforestry systems Social •Training for farmers •Farming school Economical •Premium •Added value Certification Certification

• Partnerships with the industries: opportunities for the farmers (increased transparency) • The main influence of industries on agricultural practices is through certification • Certification, recommended by the food industry has positive impact on the agroforestry cropping systems • After 2020, how will the quality be remunerated? 14 To conclude

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References • Barel, M. 2009. Du cacao au chocolat, l’épopée d’une gourmandise. 1ère édition. QUAE, France, 144pp. • Mabou, A., François, M., Monkam, N., Broutin, C., Barlet, S. 2012. Comment développer les métiers agroalimentaires en Afrique subsaharienne ? Etude de cas Cameroun. Gret – rapport Cameroun. • Potts, J., Van der Meer, J., Daitchman, J. 2010. The state of subtainability initiatives review: Sustainability and transparency. International Institute for Sustainable Development (IISD) & International Institute for Environment and Development (IIED), 98pp. (http://www.iisd.org/pdf/2010/ssi_sustainability_revie w_2010.pdf) 16

Acknowledgements • To the CIRAD team in Yaoundé, and more so Martin ten Hoopen, Olivier Sounigo and Edouard Baut. To IRAD in Yaoundé, and especially Eddy Ngonkeu. In the field, we would like to thank Françoise and Kenneth, the frères de la mission Talba and the farmers in Talba. 17

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