Session 3.5 how agroindustries influence cocoa growers

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Impact of the food-industry on the practices of cocoa producers in Cameroon

Sarah Langrand (Bordeaux Sciences Agro)

Laurène Feintrenie (CIRAD, Yaoundé)

World Conference on AgroforestryDelhi 2014

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What is on the menu?

• Method: how did we proceed?

• The context: Cocoa in Cameroon

• Market chain organization

• Certification

• To conclude: Take-home message

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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

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Cocoa in Cameroon

• 5th producer of the World

• Smallholders: 1.5 to 3 ha per farmer

• Food-industry companies

• 80% exported

• 2020: 100% certified

Mabou et al., 2012; Barel, 2009

How do the food-industries impact the cocoa production in Cameroon?

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Market chain organizationMiddle harvest(January to June)

Big harvest(July to August)

Products Standard StandardCertified

Price paid to the farmers

< 1200 € per ton > 1200 € per ton + premium (certified)

Cocoa market Closed 1 per weekBuyers Middlemen TradersQuality of the production

Low>20% does not have the required quality

High

6Finished 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

(euro/ton)

Farmers (Talba)

Buyers (EU)

572328

Middlemen

Wholesalers (Douala)

Exporters (Douala)

50

1540

1730

1870

290

50

60

1200

140

80

Market chain organization

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• Share of the export tax

Market chain organization

23%

13%

55%

9%

ONCCCICCFodeccSODECAO

80 euros/ton of tax

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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: CooperativeWho?

GIC UnionGIC

1960 Disappear

Market chain organization• Farmers’ organization

9

Tons

of c

ertifi

ed c

ocoa

Certification

Modified from Potts et al., 2010

Organic

Fairtrade

Rainforest Alliance

UTZ certified

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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

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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)

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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

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Environmental• Limitation of pesticides• Maintenance

Agroforestry systems

Social• Training for

farmers• Farming school

Economical• Premium• Added value

Certification

Certification

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• 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?

To conclude

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Thank you for your attention

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References

• Barel, M. 2009. Du cacao au chocolat, l’épopée d’une gourmandise. 1ère édition. QUAE, France, 144pp.

• Mabou, A., Francois, 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_review_2010.pdf)

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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 Francoise and Kenneth, the frères de la mission Talba and the farmers in Talba.