proud of our members - world cocoa foundation · west africa global leader in cocoa production...

Proud of Our Members

PT. Hope

Indonesia

Tulip Cocoa

As of June 2015

Raul

Ocazionez

Foundation

WorldCocoa.org

June 30 - July 1, 2015 Washington, D.C., U.S.A.

2015 WCF Partnership Meeting &

Cocoa Sustainability Trade Fair – Day 1

WorldCocoa.org

Welcome & Introduction

Conference Moderator: Carrie Fox, C.Fox Communications

©World Cocoa Foundation 2015 | All rights reserved

8:30-8:40 am Welcome & Introduction Carrie Fox, C.Fox Communications

8:40-9:10 am Opening Remarks Barry Parkin, Chairman, WCF Bill Guyton, President, WCF

9:10-9:25 am 15 Years in 15 Minutes Moderator: Carrie Fox, C.Fox Communications Panelists:

• Andy McCormick, The Hershey Company • Kip Walk, Blommer Chocolate Company • Taco Terheijden, Cargill Cocoa & Chocolate

9:25-10:00 am Keynote Address Simeon Ehui, The World Bank Group

10:00-10:30 am Cocoa Break & Cocoa Sustainability Trade Fair

10:30-11:15 am Changing Perspectives in Cocoa Sustainability in West Africa

Moderator: Barry Parkin, Mars, Incorporated Panelists:

• Massandjé Touré-Litse, Le Conseil du Café-Cacao • Stephen Opuni, Ghana Cocoa Board

11:15 am-12:15 pm Lessons Learned: Donor Strategies for Cocoa Sustainability

Moderator: Bill Guyton, President, WCF Panelists:

• Ginya Truitt Nakata, Inter-American Development Bank

• Mark Huisenga, U.S. Agency for International Development

• Orin Hasson, Bill & Melinda Gates Foundation

12:15-1:30 pm Networking Lunch & Cocoa Sustainability Trade Fair

WCF Partnership Meeting Agenda Day 1 Tuesday, June 30, 2015

Start: 8:30 am End: 4:30 pm

Grand Hyatt Washington, 1000 H St NW, Washington, DC 20001

Room: Independence Ballroom


1:30-2:30 pm Opportunities & Challenges in Multi-Stakeholder Partnerships: A Look at CocoaAction

Moderator: Jim Thompson, U.S. Department of State Panelists:

• Andrew Brooks, Olam • Jason Green, ECOM Agrotrade • Michiel Hendriksz, ADM International Sàrl

2:30-2:45 pm 15 Years in 15 Minutes Moderator: Richard Rogers, Bill & Melinda Gates Foundation Panelists:

• Jean-Marc Anga, International Cocoa Organization • Jeff Morgan, Mars, Incorporated • Nicko Debenham, Barry Callebaut

2:45-3:00 pm Cocoa Break & Cocoa Sustainability Trade Fair

3:00-4:00 pm Gender in Cocoa and Other Commodities

Moderator: Cathy Pieters, Mondelēz International Panelists:

• Marina Morari, Barry Callebaut • Sarah Zoen, Oxfam • Tawiah Agyarko-Kwarteng, The Hershey Company

4:00-4:15 pm 15 Years in 15 Minutes Moderator: Peter Bretting, U.S. Department of Agriculture, Agricultural Research Service Panelists:

• Ray Schnell, Mars, Incorporated • Sona Ebai, World Cocoa Foundation

4:15-4:30 pm Day 1 Round Up

6:00-7:00 pm Reception at the National Museum of Women in the Arts

7:00-10:00 pm 15th Anniversary Gala Dinner & Awards Ceremony

WCF Partnership Meeting Agenda Day 1 Tuesday, June 30, 2015

Start: 8:30 am End: 4:30 pm Grand Hyatt Washington, 1000 H St NW, Washington, DC 20001

Room: Independence Ballroom

WorldCocoa.org

Wifi code: WCFPM2015 Wifi network: Hyatt Meeting

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Thanking Our Sponsors

Promacom

Visit the Cocoa Sustainability Trade Fair

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Barry Parkin Chairman


Bill Guyton President


Opening Remarks


CocoaAction Vision

12

A rejuvenated and economically viable cocoa sector that can compete with alternative crops

KPI framework

Reaching at least 300,000 cocoa farmers and their communities

Good Agricultural

Practices

Improved Planting Material

Soil Fertility

and Fertilizers

Primary Education

Child Labor

Prevention

Women’s Empowerment

Moderator:

• Carrie Fox, C.Fox Communications Panelists:

• Andy McCormick, The Hershey Company • Kip Walk, Blommer Chocolate Company • Taco Terheijden, Cargill Cocoa & Chocolate

“15 Years in 15 Minutes”

WorldCocoa.org

Simeon Ehui Global Agriculture Practice Manager for Africa

The World Bank Group

Keynote Address

Sustaining the Future of the Cocoa Value Chain in West Africa

Simeon K. Ehui Global Agriculture Practice Manager for Africa

World Bank Group

World Cocoa Foundation 15th Anniversary 2015 Partnership Meeting & Cocoa Sustainability Trade Fair

June 30 – July 1, 2015, Washington D.C.

Outline

• Importance of cocoa to West African economies

•Key development challenges

•World Bank interventions in the region

•Moving forward and take home messages

Outline

• IMPORTANCE OF COCOA TO WEST AFRICAN ECONOMIES




West Africa global leader in Cocoa Production

• Farmers across West and Central Africa’s cocoa belt account for 73% of global production.

• Cote d’Ivoire is the worlds largest

producer (38%), followed by Ghana (21%).

• West Africa, the world leader, produces over 95% of African cocoa.

Source: International Cocoa Organization (ICCO) – 2014 estimates

Latin America (708,000 tons)

Africa

3.194million tons)

Asia and Oceania (454,000 tons)

73%

11%

16%

Production share by region

Africa

Asia and Oceania

Latin America

1746

897

248

211

3.1 million

tons

Lead agriculture

value addition

High potential for poverty reduction

Important source of

agricultural income

Cocoa provides livelihoods for some 2 million rural

households in West Africa (14 million people)

In Ghana, household surveys indicate that poverty among cocoa-producing

households dropped to 23.9 % in 2005, down from 60.1 % at the

beginning of the 1990s

Cocoa accounts for 38 % of agricultural value added in Côte d’Ivoire and 12 % in

Ghana

Socio-economic aspects

In West Africa, cocoa is a major export commodity and foreign exchange earner

Exports for the global

chocolate market

Worth more than

5 billion dollars of

cocoa beans

Source: FAOStat

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

2008 2009 2010 2011 2012

Export value, (1000 $US)

Cameroon Ghana Cote d'Ivoire Nigeria

Cocoa processing industries

Export value for cocoa paste, butter, powder & cake (x1000$US)

0

100000

200000

300000

400000

500000

600000

700000

800000

Cameroon Ghana Côte d'Ivoire Nigeria

Share of Processed Cocoa Products in total Cocoa Exports, 1990–2007

Source: FAOSTAT. Note: Cocoa processed products include cocoa butter and cocoa paste.

Outline


•KEY DEVELOPMENT CHALLENGES



Keys issues

Low farm productivity

Limited organizational

capacity

Limited investments

400

560

0

200

400

600

800

Ghana Cote d'Ivoire

Approximate Yield (kg/ha)

Yields are estimated to be 40–50 percent below potential

Loss of land devoted to cocoa production

Rubber

• Much higher returns per day worked

Cocoa

• Lower returns to labor

Principal drivers: Increasing competition over land and

labor from other sectors (e.g. gold mining in Ghana)

Competition from more profitable crops (rubber, oil palm)

Poor livelihood conditions leading to abandoning of farms in search of off-farm employment

Over the past 10 years, rubber has offered returns up to 5 times as high per day worked compared to cocoa - plus revenues which are spread evenly over the entire year

Even at the high cocoa prices of recent times, rubber remains more profitable

Rubber and oil palm companies are providing support through out-grower schemes

Climate change

Need to adapt crop management technologies to evolving conditions

Gradual shift to higher altitudes with further deforestation likely to occur

Expected temperature rises caused by climate change will leave many cocoa growing areas unproductive

Land Area Suitable for Growing Cocoa in Cote d’Ivoire 2011 and 2050 (projected)

Source: CIAT, Presentation WCF Meeting – October 26 – 27, 2011)

Cocoa price volatility

Among many market risks, the high volatility of cocoa prices on the open market remains a key challenge.

High volatility of cocoa prices on the open

market

Exchange rate

volatility

Interest rate

volatility

Input price

volatility

Etc.

With low income from cocoa, who chooses to work on a cocoa farm?

43%

10%

20%

[VALUE]

5%

12%

7% Retail/Supermarket margins

Marketing

Manufacturing costs

Farmers

Local taxes and coca buyers

Transport, storage and trade

Grinder/processors

Source: Oxfam

Outline



•WORLD BANK INTERVENTIONS IN THE REGION


Cote d’Ivoire: As of 2011, the country has embarked on some major reforms with support from the World Bank Group

Main Principles

• Strengthening good governance and transparency in the management of the sector

• Sustainability of the sector and anticipate issues and challenges

• Securing and improving the income of producers

• The establishment of a strong inter-profession

Main Objectives

• Optimization of production and improving the quality of cocoa

• Sustainable cocoa industry through the economic, social and environmental dimension

• Improvement of domestic marketing – A minimum of 60% of the CIF price is guaranteed to producers

• Taxation - Maintaining tax and special levies to 22% of the CIF

• Institutional management - Single, centralized authority (CCC)

Program cost 2014-2023

• 456 391 millions F CFA with main focus on:

• Improving productivity (75%)

• Improving living conditions (22%)

Cote d’Ivoire: The Agriculture Sector Support Project aims to improve smallholder access to technologies and markets, and enhance governance of the cocoa value chain

Components

Improving farmers access to markets

Support to sustainable cocoa productivity

Capacity building and institutional enhancement

Some expected results

• 13,000 cocoa farmers trained on good agricultural practices

• replanting with improved planting material about 20,000 ha of cocoa farms of 25 years or older

• designing a market-based funding mechanism to ensure adequate access by farmers to critical inputs, such as fertilizers

• 130 socio-economic sub-projects initiated by cocoa cooperatives to improve their operational capacities and to facilitate access to basic social services

• 960 km of rural roads rehabilitated

• enhancing the control of cocoa diseases, by designing and implementing a cocoa disease early warning system and a Pest Management Plan

• implementation of the Public-Private Partnership (PPP) platform and its M&E system

Ghana: Strategic Planning Exercise with COCOBOD funded under PPP arrangement, as input into the Ghana Cocoa Sector Development Strategy II (CSDSA II):

Scoping Mission (2014):

• Performed diagnostic of the cocoa sector (“X-Ray”)

• Identified 5 priority issues and possible areas for investments and policy interventions: Establish modern accounting and Management

Information Systems (MIS) Streamline logistics and quality control Reform input supply and support services Promote cocoa agroforestry systems Improve coordination of programs and projects in

the cocoa sector

Scenario Planning Workshops (2014-2015):

• Find long-term solutions to existing and expected challenges in the cocoa industry

• Fashion a strategic vision for the sector, including the need for closer collaboration among the public and private sectors

Ghana: Forest Investment Program (FIP), REDD+ Emission Reductions Program (ER-P)

FIP ($ 30 million WB, $ 8 million IFC) provides:

close to $2 million in funding for COCOBOD for activities related to provision of seedlings, inputs, and extension.

funding to address key policy issues related to land and tree tenure and landscape approaches to land-use planning.

32

Outline




•MOVING FORWARD AND TAKE HOME MESSAGES

Empower farmers and provide them with the tools to enhance their productivity and improve their incomes

Organized and trained farmers managing their land and crops in a sustainable manner: Sustainable agronomic practices

Access to improved inputs: high-yielding varieties and fertilizers, etc.

Access to finance, information and markets Credit: Fiona Hill

Support and increase

operational-scale research

and technology transfer

Agronomic practices

Plant genetics

and breeding

Pest and disease control

Post-harvest

practices

Technology

Quality

Promote further certification schemes

Farmer benefits

Community benefits

Global benefits

When economically justified, move up the value chain in cocoa producing countries

Source: J. Wilkinson & R. Rocha (2009)

TAKE HOME MESSAGES…..

Conserve the natural resources

Concrete and effective public and industry

initiatives to promote sustainable cocoa

production

Improve cocoa farmers’ economic and social conditions: decent

living

Looming challenge in supply v. growing demand ?

Need for a different approach to production:

Public-Private Partnership, Sustainability and Innovation

Demand for cocoa is growing:

With an estimated 2% annual growth, the world may face a “cocoa deficit” of 1 million tons by 2020.

3.8

89

4.0

89

4.1

31

4.2

18

4.3

18

4.4

37

4.5

68

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19

COCOA WORLD CONSUMPTION (x1000 tons)

Source: International Cocoa Organization (ICCO)


Cocoa Break

Sponsored by:

WorldCocoa.org

“Changing Perspectives in Cocoa Sustainability in West Africa”

Moderator:

• Barry Parkin, Mars, Incorporated Panelists:

• Massandjé Touré-Litse, Le Conseil du Café-Cacao • Stephen Opuni, Ghana Cocoa Board

Moderator: • Bill Guyton, World Cocoa Foundation

Panelists:

• Ginya Truitt Nakata, Inter-American Development Bank

• Mark Huisenga, U.S. Agency for International Development

• Orin Hasson, Bill & Melinda Gates Foundation

“Lessons Learned: Donor Strategies for

Cocoa Sustainability”


Networking Lunch & Cocoa Sustainability Trade Fair

Sponsored by:

WorldCocoa.org


Moderator:

• Richard Rogers, Bill & Melinda Gates Foundation

Panelists:

• Jean-Marc Anga, International Cocoa Organization • Jeff Morgan, Mars, Incorporated • Nicko Debenham, Barry Callebaut

Moderator: • Don Foley, CFox Communications

Panelists:

• Andrew Brooks, Olam International • Jason Green, ECOM Agrotrade • Michiel Hendriksz, ADM Internaional Sàrl

“Opportunities & Challenges in Multi-Stakeholder Partnerships: A Look at

CocoaAction”


CocoaAction Vision

47

A rejuvenated and economically viable cocoa sector that can compete with alternative crops

KPI framework

Reaching at least 300,000 cocoa farmers and their communities

Good Agricultural

Practices

Improved Planting Material

Soil Fertility

and Fertilizers

Primary Education

Child Labor

Prevention

Women’s Empowerment


Cocoa Break

Sponsored by:

WorldCocoa.org

“Gender in Cocoa and Other Commodities”

Moderator:

• Cathy Pieters, Mondelēz International Panelists:

• Marina Morari, Barry Callebaut • Sarah Zoen, Oxfam • Tawiah Agyarko-Kwarteng, The Hershey Company

Moderator:

• Peter Bretting, U.S. Department of Agriculture, Agricultural Research Service

Panelists:

• Ray Schnell, Mars, Incorporated • Sona Ebai, World Cocoa Foundation


Day 1 Round-Up

Carrie Fox, C.Fox Communications

15th Anniversary Gala Dinner

National Museum of Women in the Arts

1250 New York Ave NW, Washington, D.C. 20005

6:00 pm Reception, 3rd Floor Gallery

7:00 pm Dinner, Mezzanine

7:45 pm Remarks by Dana Hyde, CEO

Millennium Challenge Corporation

8:40 pm Awards Ceremony

9:00 pm Music and Dancing

Entrance on 13th St at H St

proud of our members - world cocoa foundation · west africa global leader in cocoa production...

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