Baseline for assessing the impact of Fairtrade certification on cocoa farmers and cooperatives in Ghana

Peer Revie

Service provision by agri-cooperatives engaged in high value markets

This note presents a practical approach by which cooperatives strengthen their ability to deliver impactful and financially sustainable services. In doing so, it recognises the challenges faced by cooperatives to design services that both meet the different needs of members and are financially sustainable

Fairtrade cocoa in Ghana: taking stock and looking ahead

Some of the global chocolate industry's biggest players, such as Ferrero, Mars, and Hershey, have expressed their commitment to achieve a sustainable cocoa sector by the year 2020. As the world's second largest producer of cocoa, Ghana is also interested in moving towards sustainable cocoa production. Voluntary standards systems, such as Fairtrade, play an important role in providing independent third-party evidence of progress towards sustainability. Fairtrade does so by offering a framework for producers and buyers to engage in more equitable business relations, with reduced price risks for farmers and opportunities for cooperative and community development through investments enabled by the Fairtrade premium. Over the past years, Fairtrade has significantly advanced in Ghana's cocoa sector. Between 2009 and 2014, annual volumes of Fairtrade cocoa produced in the country increased from 481 MT to 54,600 MT. This impressive growth is linked to the evolution of Kuapa Kokoo as leading cocoa cooperative, and to the creation of numerous new cooperatives that obtained Fairtrade certification over the past few years. Founded in 1993 and Fairtrade certified since 1995, Kuapa Kokoo has grown into the world's largest Fairtrade certified cocoa cooperative. With about 100,000 members, organized into 57 independently registered Societies across 1,280 communities, Kuapa Kokoo offers technical services to its members, purchases cocoa as a Licensed Buying Company (LBC), and provides credit (through an associated credit union with more than 8,000 members). While Kuapa Kokoo continues to produce the lion share (77 percent in the season 2012-13) of Ghana's cocoa sold under Fairtrade terms, the newly founded cooperatives are increasingly contributing relevant volumes of Fairtrade certified cocoa. From 2009 to 2014, the number of Fairtrade cooperatives rose from one (Kuapa Kokoo) to 11, and the share of cocoa with the Fairtrade label increased from less than 1 percent to 6.1 percent of national production. In 2014, Ghana was the world's largest producer of cocoa sold under Fairtrade terms with a market share of 38 percent (followed by Côte d'Ivoire with a share of 30 percent). As Fairtrade expands in Ghana, important questions arise in relation to the capacity of cocoa cooperatives and farmers to benefit from Fairtrade certification; and with respect to impactful ways for Fairtrade and partners to engage with these resource-poor stakeholders in response to the constraints they face at the beginning of the value chain. Here we offer insights into these questions by exploring the overall context in which Fairtrade operates in Ghana, as well as the capacities of four recently established Fairtrade-certified cocoa cooperatives and their members. The latter's organization into cooperatives was facilitated by NGOs and cocoa buyers with the explicit goal of linking them to Fairtrade markets. Data are derived from a baseline study commissioned by Fairtrade Africa, including a household survey among 322 randomly selected members from four Fairtrade-certified cocoa cooperatives with a total membership of roughly 5,000

Service provision by agri-cooperatives engaged in high value markets

Markets for agricultural products with special quality, environmental, and social attributes can provide a profitable outlet for poor farmers in developing countries. However, participation in high value markets requires that farmers commit to deliver pre-identified volumes on time and in the required form and quality – a tall order in many cases. Agri-cooperatives play an important role in linking farmers to these markets; they forge business relations with distant buyers, realise economies of scale in processing and marketing, and provide advisory and other services to help their members respond to buyer demands. Examples of these services include technical assistance, training, and input and credit provision. This note presents a practical approach by which cooperatives strengthen their ability to deliver impactful and financially sustainable services. In doing so, it recognises the challenges faced by cooperatives to design services that both meet the different needs of members and are financially sustainable. Too often cooperative services are supported by external actors with no clear vision of how to continue once project support terminates, leading to disrupted service offerings for members, and fragmented learning processes for cooperatives and their partners. Innovation is urgently needed in how services are designed, how they are implemented, and cost recovery mechanisms. At the heart of the approach lies a focus on joint learning among stakeholders – cooperatives, their business partners, government agencies, and non-government organisations (NGOs) – to better tackle the complexity inherent in the provision of effective services to poor farmers

Baseline for assessing the impact of fairtrade certification on cocoa farmers and cooperatives in Côte d’Ivoire

Report commissioned by Fairtrade Africa and Fairtrade International. World Agroforestry Centre, Nairobi, Kenya. Farms-Forests-LandscapesIn 2014, Fairtrade International, Fairtrade Africa, the World Agroforestry Centre (ICRAF) and Bioversity International initiated a collaboration for the development of a multidimensional baseline on small-scale cocoa farmers and their cooperatives in West Africa. The baseline is expected to provide a fuller understanding of the current situation for Fairtrade cocoa production and marketing as well as provide the foundation for rigorous assessment of outcomes and impacts of Fairtrade certification on cocoa cooperatives and smallholder households in West Africa in the future. Côte d’Ivoire and Ghana, the two largest Fairtrade cocoa producers in West Africa, provide about 68 percent of the cocoa that is sold under Fairtrade terms in global markets. In 2013, the year this study was commissioned, the volume of Fairtrade cocoa sold from West Africa reached 133 400 tonnes, involving 71 cooperatives and producer associations and 138 800 farmers. Most of this cocoa originated from Côte d’Ivoire and Ghana. The rapid growth in the number of cocoa-producing organizations joining the Fairtrade system in Côte d’Ivoire and Ghana provides a unique opportunity to build a baseline on Fairtrade cocoa producers in West Africa for future monitoring and impact assessment. This report focuses on the Fairtrade cocoa baseline for Côte d’Ivoire (a similar report is available for Ghana). It describes the conceptual framework and methods used in the design of the baseline, followed by an assessment of the context in Côte d’Ivoire. Key features of the baseline data at the cooperative and household levels are covered in detail. The report concludes with some recommendations to Fairtrade for expanding Fairtrade International in Côte d’Ivoire and for follow-up actions for future baseline work

Service provision by agri-cooperatives engaged in high value markets

Markets for agricultural products with special quality, environmental, and social attributes can provide a profitable outlet for poor farmers in developing countries. However, participation in high value markets requires that farmers commit to deliver pre-identified volumes on time and in the required form and quality – a tall order in many cases. Agricooperatives play an important role in linking farmers to these markets; they forge business relations with distant buyers, realise economies of scale in processing and marketing, and provide advisory and other services to help their members respond to buyer demands (see Box 1). Examples of these services include technical assistance, training, and input and credit provision

National and International Policies and Policy Instruments in the Development of Agroforestry in Chad

The potential of agroforestry to improve livelihoods and mitigate climate change and environmental degradation has been widely recognized, especially within the context of climate-smart agriculture. However, agroforestry opportunities have not been fully exploited because of several reasons, among which are adverse policies and legislations. However, many countries do not have a full understanding of how their policy and institutional environment may affect agroforestry development. We aim to fill this gap by looking at the particular case of Chad. The method used included examining data from: (i) literature reviews of important national and international polices, strategies, and legislation governing access to land and trees, among which are ‘La Loi 14’, Chad’s 2010 poverty reduction strategy paper, draft zero of the National Environmental Policy, (ii) interviews and focus group discussions with NGOs, government officials, and farmers, and (iii) surveys with 100 households. Results show that Chad has no specific agroforestry policy but opportunities for agroforestry can be found in some of the above-mentioned policy documents and government strategies. Most stakeholders interviewed had positive attitudes towards agroforestry, but uptake of the practice is handicapped by poor understanding of the forestry law by farmers and forestry officials. Gaps in existing laws give room for rent-seekers to collect individual (USD 272–909) and collective (USD 36–1818) access fees to trees on both forest and farmland. We propose that the government of Chad should unmask elements of agroforestry in existing policies and policy instruments to demonstrate its importance in responding to livelihood and environmental challenges in the country

Community forest enterprises (CFEs) as Social Enterprises: Empirical evidence from Cameroon

Community forest enterprises (CFEs) trade to meet the economic, social, and environmental challenges of their community, just as Social Enterprises (SE) do. The question is if CFEs also could and should be understood in terms of SEs. To explore this question, this study determines the extent to which CFEs can be classified as SEs, using CFEs in Cameroon as a case study. Based on the three-dimensional EMES framework in combination with the typology of SEs of Alter, CFEs are classified along a continuum of purely non-profits, non-profits with income-generating activities, and SEs. Document review, interviews, and focus group discussions with CFE management, youths, women, and indigenous groups in 38 communities were used for data collection and subsequently analyzed. Of the 38 CFEs investigated, only 11% could be defined as SEs, 63% are non-profit organizations with income-generating activities and 26% operate as traditional non-profit organizations. The majority of the CFEs (63%) engage in commercial activities for revenue generation but lack the skills and organizational setup to employ full business approaches coupled with financial discipline and community ownership, which are core values of SEs. Operating as SEs would permit CFEs to be financially and environmentally sustainable and thus they could easily contribute to community development. However, moving CFEs from “non-profits with income generation” to SEs requires (i) a change in mindset, (ii) evaluation and building of community capacity for CFE development, (iii) proper research on tensions and paradoxes with actionable solutions, and (iv) sectorial coordination for CFE development, support, and creation of CFE incubation centers