Cocoa Sustainability Fall 2011

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1 Cocoa Sustainability Fall 2011

2 What is the Goal? Create a Strong Farming Community that can Transition from a Subsistence Livelihood to Sophisticated Business Managers Providing a Long Term Investment in Cocoa Production

3 How do we get there?

4 Sustainability: No Silver Bullet You Need a Toolbox Training in Best Practices Improvement in Farm Yield Understanding Quality Expectations Link to Global Market Coordination of All Stakeholders Certification Overall Improvement of Farming Community

5 Indonesia: SAFOB Program Today Reaches 31,000 Farmers in Sulawesi and Sumatra SAFOB Farmers Produce More than 26,000 metric tons of Sustainable and Traceable Cocoa Annually Farmers are Receiving Higher Yields and Income as a Result of Farmer Field School Training and Market Access to Global Buyers 10,000 metric tons of SAFOB Cocoa is now Rainforest Alliance Certified

6 50% 45% 40% 45,46% 36,75% Farm Yield per Hectare 35% 30% 29,63% 25% 20% 15% 17,04% 15,45% 15,08% 20,20% 10% 5% 0% 8,23% kgs/ha kgs/ha kgs/ha Baseline (N:1080) 4,72% kgs/ha 3,15% Postline (N:1094) 0,00% 4,30% > 1000 kgs/ha Not answered

7 Farmer Knowledge of Quality Requirements

8 Farmer Direct Access to Exporter/Global Market Baseline (N:1080) 4.35% 15.74% 79.91% Yes No No answer

9

10 Ivory Coast: CIFOB Network 10,000+ Farmers Participating from 20 Cooperatives Throughout Growing Region. 15,000 metric tons Annual Volume of Sustainable and Fully Traceable Cocoa 8,000 m/t Rainforest Certified. Forecast to Exceed 10,000 m/t in 2011/2012 Season Farmers have Received $2.4 million in Premiums in 2010/2011 Season Network Structure was Able to Provide All Certified Cocoa Prior to Export Ban.

11 CIFOB: Farmer Field Schools Farmer Field Schools Providing Training in Farm Management, Disease and Pest Control, Yield Improvement, HIV/AIDS Prevention and Child Labor Sensitization Capacity Building at the Cooperative Level Providing Training in Business Management, Accounting and Marketing Skills. Improved Technologies such as Solar Dryers which Provide a Low Cost/Highly Effective Option for Drying Cocoa Fully Traceable, Third Party Audited Cocoa Bean Supply Chain

12 Ivory Coast: CIFOB In Addition to the Farmer School Training, CIFOB Provides Funds to Improve Community Infrastructure Along with Partners WCF/ECHOES, Winrock and Saf Marine, CIFOB is Building Two Primary Schools. CIFOB is also Building Two Health Centers and a Cooperative Store The Decision on the Type of Project is Driven by the Cooperative Board

13 CIFOB: Revitalization Working with CNRA, CIFOB Distributed 180,000 High Yielding, Hybrid Plants to Network Farmers 9 Nurseries were Constructed to Provide CIFOB Farmers Long Term Access to this Improved Tree Stock

14 Ivory Coast: PACTS Sustainability J.V. between Blommer, Cemoi and Delfi in the Ivory Coast Fermentation Centers act as Buying Stations and Training Facilities for nearby Cooperatives Newly harvested, wet cocoa is purchased and controlled fermentation is performed by PACTS representatives. Farmers are trained in fermentation techniques, best farming practices, quality control and side grafting

15 Ecuador: New Launch Earlier this Month, Blommer and Regional Ecuadorian Government Officials Agreed to a New Sustainability Program Local Government will Supply 1,500,000 High Yield Seedlings to Farmers Over the Next Three Years Blommer will Provide Training on Best Pre and Post Harvest Techniques through Farmer Field Schools for 1,500 Farmers Program is Forecast to Provide 10,000 m/t of New Cocoa Production in the Region Doubling the Current Production Levels

16 Summary There is a Need Beyond Marketing for a Sustainable Supply Chain Opportunities for Growth Through Land Expansion is Not Likely and Loss of Land Dedicated to Cocoa is Certain Strongest Opportunity for Growth is Through Improvement in Yield Best Strategy is a Multi-Stakeholder Approach Utilizing All of the Tools in the Toolbox

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