Mappin

g

Sust

ain

able

Pro

duct

ion in

Ghanaia

n C

oco

a

Rep

ort

to C

adbu

ryIn

stit

ute

ofD

evel

opm

ent

Stud

ies

and

the

Uni

vers

ity

ofG

hana

g

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oa

3

Pro

ject

Coo

rdin

ator

s:D

rSt

epha

nie

War

e B

arrie

ntos

, ID

S, U

nive

rsity

of

Suss

ex a

nd I

DP

M,

The

Uni

vers

ity o

fM

anch

este

r. Em

ail:

s.bar

rient

os@

man

ches

ter.a

c.uk

Pro

fess

orKw

adw

o A

sens

o-O

kyer

e,

Dep

artm

ent

ofA

gric

ultu

ral

Eco

nom

ics

and

Agr

ibus

ines

s, U

nive

rsity

of

Gha

na. E

mai

l: ka

sens

o@cg

iar.o

rg

Res

earc

h Te

am:

Dr

Sam

uel A

sum

ing-

Bre

mpo

ng, D

epar

tmen

t of

Agr

icul

tura

l Eco

nom

ics

and

Agr

ibus

ines

s,U

nive

rsity

of

Gha

na

Dr

Dan

iel S

arpo

ng, D

epar

tmen

t of

Agr

icul

tura

l Eco

nom

ics

and

Agr

ibus

ines

s, U

nive

rsity

ofG

hana

Dr

Nan

a A

kua

Any

idoh

o, IS

SER

, Uni

vers

ity o

fG

hana

Prof

esso

rRa

phae

l Kap

linsk

y, ID

S, U

nive

rsity

of

Suss

ex a

nd O

pen

Uni

vers

ity

Jenn

ifer

Leav

y, ID

S, U

nive

rsity

of

Suss

ex

Ack

now

ledg

emen

tsW

e w

ould

like

to

than

k th

e fo

llow

ing

peop

le, w

ithou

t w

hom

thi

s pr

ojec

t w

ould

not

hav

ebe

en p

ossib

le:

All

inte

rvie

wee

s w

ho a

gree

d to

par

ticip

ate

in t

he s

tudy

, esp

ecia

lly t

he c

ocoa

farm

ers

and

yout

h w

hose

fut

ure

is so

clo

sely

con

nect

ed t

o en

surin

g th

e su

stai

nabi

lity

ofco

coa

prod

uctio

n. A

ll w

orks

hop

part

icip

ants

in A

ccra

who

inte

nsel

y di

scus

sed

the

chal

leng

esah

ead

for

coco

a pr

oduc

tion.

Alfr

ed A

ssum

ing-

Boa

kye

and

King

sley

Sam

Odu

m f

orth

eir

rese

arch

ass

istan

ce d

urin

g th

e fie

ldw

ork.

Cad

bury

for

prov

idin

g re

sour

ces

to u

nder

take

the

proj

ect a

nd D

avid

Cro

ft a

nd To

ny L

ass f

orin

sight

ful c

omm

ents

on

an e

arlie

rdra

ft o

fthe

repo

rt.

Dis

clai

mer

This

repo

rt

pres

ents

fin

ding

s fr

om

an

inde

pend

ent

stud

y co

mm

issio

ned

by

Cad

bury

Schw

eppe

s, ca

rrie

d ou

t jo

intly

by

rese

arch

ers

from

the

Inst

itute

of

Dev

elop

men

t St

udie

s,U

nive

rsity

of

Suss

ex a

nd t

he D

epar

tmen

t of

Agr

icul

tura

l Ec

onom

ics

and

Agr

ibus

ines

s,U

nive

rsity

of

Gha

na.

The

auth

ors

alon

e ar

e re

spon

sible

for

all

info

rmat

ion

and

view

sex

pres

sed

in t

his

repo

rt, w

hich

do

not

repr

esen

t C

adbu

ry.

2

g

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaFo

rew

ord

5

Fore

wor

d by

Dr

Step

hani

e B

arri

ento

s an

d P

rofe

ssor

Kw

adw

o A

sens

o-O

kyer

eG

hana

is r

enow

ned

for

the

qual

ity o

fits

coc

oa p

rodu

ctio

n an

d th

e cr

op p

lays

a m

ajor

role

in th

e ec

onom

y in

term

s ofe

mpl

oym

ent,

inco

mes

and

fore

ign

exch

ange

ear

ning

s. H

owev

er,

Gha

nas

coco

a pr

oduc

ers

face

man

y op

port

uniti

es a

nd c

halle

nges

in s

usta

inin

g th

eirp

ositi

onin

a c

hang

ing

glob

al m

arke

t. Th

is re

port

pre

sent

s th

e fin

ding

s of

inde

pend

ent

rese

arch

carr

ied

out

for

Cad

bury

. It

aim

s to

enh

ance

und

erst

andi

ng o

fth

e po

sitio

n of

Gha

nas

coco

afa

rmer

s an

d th

eir

com

mun

ities

with

res

pect

to

thei

rliv

elih

ood

in t

he c

onte

xt o

fa

dyna

mic

choc

olat

e va

lue

chai

n. W

e ho

pe t

he re

port

con

trib

utes

to a

ddre

ssin

g th

e fu

ture

sust

aina

bilit

y of

coco

a pr

oduc

tion

in G

hana

and

pro

vides

evid

ence

fori

mpr

ovin

g th

e liv

elih

oods

oft

he fa

rmer

s.

One

of

the

key

findi

ngs

ofth

e st

udy

is th

at, d

ue t

o se

vera

l rea

sons

, pro

duct

ivity

in c

ocoa

farm

ing

is lo

w,

and

decl

ines

as

the

farm

ers

get

olde

r. Ye

t m

any

ofth

e yo

uth,

on

who

mvia

bilit

y of

the

sect

orde

pend

s, do

not

asp

ire to

take

up

coco

a fa

rmin

g as

a v

ocat

ion

and

they

look

for

bett

erop

port

uniti

es e

lsew

here

. Coc

oa fa

rmin

g ne

eds

supp

ort

ifit

is to

mod

erni

se,

impr

ove

prod

uctiv

ity, e

nhan

ce in

com

es a

nd r

eput

atio

n su

ffic

ient

ly t

o at

trac

t an

d re

tain

the

educ

ated

you

th t

o en

sure

a s

usta

inab

le fu

ture

.

Cho

cola

te m

anuf

actu

rers

pla

y a

cent

ral r

ole

in t

he c

hoco

late

val

ue c

hain

give

n th

eir

cent

ral

com

mer

cial

pos

ition

. The

res

earc

h te

am w

elco

mes

the

Cad

bury

Coc

oa P

artn

ersh

ip a

s an

impo

rtan

t co

ntrib

utio

n to

fut

ure

sust

aina

bilit

y of

the

sect

or. I

nvol

ving

part

ners

acr

oss

the

valu

e ch

ain

in s

uppo

rtin

g co

coa

farm

ers

and

thei

rco

mm

uniti

es h

elps

to

crea

te a

mor

ein

clus

ive a

nd b

road

app

roac

h to

add

ress

ing

the

chal

leng

es f

acin

g G

hana

s co

coa

farm

ers.

Exte

ndin

g su

ch a

n in

itiat

ive a

cros

s co

coa

prod

ucin

g co

untr

ies

help

s in

pro

mot

ing

coco

afa

rmer

s an

d th

eir

com

mun

ities

glo

bally

.

Fore

wor

d by

Dav

id C

roft

, Con

form

ance

and

Sus

tain

abili

ty D

irec

tor,

Cad

bury

This

rese

arch

by

the

Inst

itute

of

Dev

elop

men

t St

udie

s an

d th

e U

nive

rsity

of

Gha

na h

aspr

ovid

ed a

bet

ter

unde

rsta

ndin

g of

the

need

s of

coco

a fa

rmer

s an

d th

eir

com

mun

ities

inG

hana

. W

e in

corp

orat

ed t

he r

epor

t's f

indi

ngs

into

our

thin

king

as

we

esta

blish

ed t

heC

adbu

ry C

ocoa

Par

tner

ship

(CC

P)

an

inve

stm

ent p

rogr

amm

e in

Gha

na, w

orth

30

mill

ion

over

a te

n-ye

arpe

riod

aim

ing

to t

rans

form

the

live

s an

d liv

elih

oods

of

mor

e th

an h

alf

am

illio

n co

coa

farm

ers.

The

CC

P is

par

t of

45

mill

ion

glob

al c

ocoa

inve

stm

ent

prog

ram

me,

cove

ring

Indi

a, In

done

sia a

nd t

he C

arib

bean

. We

belie

ve t

his

new

type

ofs

ocia

l and

bus

ines

sin

vest

men

t mod

el, l

ed fr

om th

e gr

ass r

oots

, will

cre

ate

cond

ition

s to

enab

le G

hana

ian

coco

afa

rmer

s to

inc

reas

e th

eir

prod

uctiv

ity,

impr

ove

thei

rin

com

e an

d im

prov

e lif

e in

coc

oafa

rmin

g co

mm

uniti

es t

hrou

gh c

omm

unity

cen

tred

dev

elop

men

t.

Com

mun

ity e

mpo

wer

men

t is

at t

he h

eart

of

our

prog

ram

me.

With

our

part

ners

in G

hana

we

are

help

ing

coco

a fa

rmin

g co

mm

uniti

es to

set

the

irvis

ion

and

actio

n pl

an fo

rthe

futu

re,

and

then

to

deliv

erth

at v

ision

. Pro

gram

mes

will

incl

ude

prov

idin

g m

icro

finan

ce t

o fa

rmer

s,ed

ucat

ion

and

ente

rpris

e pr

ogra

mm

es,

and

deliv

erin

g tr

aini

ng a

nd t

echn

ical

sup

port

for

mor

e ef

ficie

nt c

ocoa

far

min

g, i

n ad

ditio

n to

dev

elop

ing

new

inc

ome

stre

ams

for

rura

lco

mm

uniti

es f

rom

new

cro

ps s

uch

as m

ango

es o

rpe

pper

s, or

even

sna

il an

d fis

h fa

rmin

g.W

e w

ill a

lso c

ontin

ue e

xist

ing

prog

ram

mes

suc

h as

Wel

l a D

ay,

whi

ch w

ill h

ave

built

ove

r85

0 w

ells

by

the

end

of20

08.

We

belie

ve t

hat

the

CC

P w

ill h

elp

Gha

na m

eet

itsM

illen

nium

Dev

elop

men

t G

oals

and

its g

oal

ofre

achi

ng m

iddl

e in

com

e st

atus

by

2015

.M

ore

impo

rtan

tly, i

t w

ill m

ake

a re

al d

iffer

ence

in r

ural

com

mun

ities

, to

farm

ers

and

thei

rfa

mili

es, h

elpi

ng s

uppo

rt t

heir

sust

aina

ble

futu

re.

Our

since

re t

hank

s to

Ste

phan

ie B

arrie

ntos

, the

Inst

itute

of

Dev

elop

men

t St

udie

s an

dth

e U

nive

rsity

of

Gha

na f

orpr

ovid

ing

this

thor

ough

inde

pend

ent

inpu

t in

to e

stab

lishi

ngou

rpr

ogra

mm

e.

Fore

word

4

g

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaC

onte

nts

7

conte

nts

Exe

cuti

ve S

umm

ary

9

1.O

verv

iew

of

proj

ect

15

1.1In

trod

uctio

n15

1.2A

ims

and

obje

ctiv

es16

1.3A

naly

tical

fra

mew

ork

16

2.C

onte

xt a

nd t

rend

s in

coc

oa s

ecto

r19

2.1

Con

sum

ertr

ends

19

2.2

Glo

bal v

alue

cha

in in

cho

cola

te a

nd c

onfe

ctio

nery

19

2.3

Coc

oa p

rodu

ctio

n 22

2.4

Soci

al d

imen

sions

of

coco

a pr

oduc

tion

24

3.C

adbu

ry v

alue

cha

in

27

3.1

Com

pany

pro

file

27

3.2

Cad

bury

val

ue c

hain

27

3.3

Cor

pora

te s

ocia

l res

pons

ibili

ty28

4.G

hana

coc

oa v

alue

cha

in29

4.1

CO

CO

BO

D29

4.2

Pric

e an

d ex

port

s29

4.3

Lice

nsed

buy

ing

com

pani

es30

4.4

Qua

lity

assu

ranc

e31

4.5

Fairt

rade

and

org

anic

coco

a33

4.6

Exte

rnal

cha

lleng

es34

5.Su

stai

nabl

e pr

oduc

tion

in G

hana

: coc

oa s

ecto

rca

se s

tudy

37

5.1

Ove

rvie

w o

fco

coa

prod

uctio

n w

ithin

Gha

na.

37

5.2

Cas

e st

udy

met

hodo

logy

38

5.3

Prof

ile o

fst

udy

dist

ricts

/com

mun

ities

41

5.4

Prod

uctio

n/pr

oduc

tivity

and

inco

me

ofco

coa

farm

ers

in t

he s

tudy

are

a 44

5.5

Ana

lysis

of

fact

ors

affe

ctin

g co

coa

prod

uctio

n pe

rfor

man

ce48

5.6

Perf

orm

ance

and

wel

fare

indi

cato

rs53

6

g

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaE

xecu

tive

sum

mar

y

9

EXECU

TIVE S

UM

MARY

Coc

oa p

lays

a k

ey r

ole

in t

he d

evel

opm

ent

ofG

hana

ian

econ

omy.

Gro

wth

in c

ocoa

out

put

can

cont

ribut

e to

ove

rall

econ

omic

pros

perit

y an

d re

duct

ion

ofpo

vert

y. Th

ere

are

now

an

estim

ated

720

,00

0 c

ocoa

farm

ers,

but

they

hav

e lo

w p

rodu

ctivi

ty, a

nd a

re h

ighl

y vu

lner

able

to p

over

ty. T

o su

ppor

t su

stai

nabl

e ex

pans

ion

ofth

e co

coa

sect

or, G

hana

nee

ds t

o po

sitio

nits

elf

in a

cho

cola

te c

onfe

ctio

nery

ind

ustr

y th

at h

as u

nder

gone

a s

igni

fican

t pr

oces

s of

chan

ge d

urin

g th

e pa

st d

ecad

e.

The

Gha

na C

ocoa

Boa

rd (C

OC

OB

OD

) has

pla

yed

a pi

vota

l rol

e in

pos

ition

ing

Gha

na w

ithin

the

glob

al m

arke

t, an

d en

surin

g th

e qu

ality

of

its c

ocoa

exp

orts

. How

ever

, the

Gha

naia

nco

coa

sect

orfa

ces

a nu

mbe

rof

chal

leng

es,

both

int

erna

l an

d ex

tern

al,

that

nee

d to

be

addr

esse

d to

ens

ure

the

futu

re s

usta

inab

ility

of

its p

rodu

ctio

n an

d po

sitio

n in

the

glo

bal

coco

a-ch

ocol

ate

mar

ket.

This

is a

brie

fsu

mm

ary

ofke

y fin

ding

s fr

om a

n in

depe

nden

t re

sear

ch s

tudy

car

ried

out

by a

team

from

the

Inst

itute

of

Dev

elop

men

t St

udie

s, U

nive

rsity

of

Suss

ex a

nd t

he D

epar

tmen

tof

Agr

icul

tura

l Ec

onom

ics

and

Agr

ibus

ines

s, U

nive

rsity

of

Gha

na.

The

stud

y w

asco

mm

issio

ned

by C

adbu

ry ,

but

all i

nfor

mat

ion

and

view

s in

the

rep

ort

are

thos

e of

the

auth

ors

alon

e. T

he r

esea

rch

is ba

sed

on a

cas

e st

udy,

whi

ch is

not

sta

tistic

ally

rep

rese

ntat

iveof

the

who

le s

ecto

r, bu

t ai

ms

to c

ontr

ibut

e to

a b

ette

run

ders

tand

ing

ofth

e ch

alle

nges

to

enha

ncin

g su

stai

nabl

e co

coa

prod

uctio

n in

the

con

text

of

a ch

angi

ng g

loba

l ch

ocol

ate-

conf

ectio

nery

mar

ket.

The

aim

of

the

stud

y w

as t

o ex

amin

e th

e fa

ctor

s th

at m

ake

up s

usta

inab

le p

rodu

ctio

nfo

rco

coa

farm

ers

in

Gha

na,

focu

sing

on

th

e so

cio-

econ

omic

dim

ensi

ons

ofsu

stai

nabi

lity.

The

stu

dy m

appe

d th

e va

lue

chai

n lin

king

cho

cola

te m

anuf

actu

rers

and

proc

esso

rs t

o co

coa

farm

ers

in G

hana

in o

rder

to a

sses

s:

Th

e cr

iteria

for

sust

aina

ble

prod

uctio

n fr

om t

he p

ersp

ectiv

e of

coco

a fa

rmer

s.

Th

e in

com

es a

nd s

ocia

l sup

port

cur

rent

ly g

oing

to

coco

a fa

rmer

s an

d th

e ga

p be

twee

ncu

rren

t an

d su

stai

nabl

e pr

oduc

tion,

sug

gest

ing

fact

ors

that

wou

ld e

nhan

ce f

arm

erliv

elih

oods

and

con

trib

ute

tow

ards

sus

tain

able

pro

duct

ion.

H

ow c

hoco

late

man

ufac

ture

rs c

an s

uppo

rt G

hana

s co

coa

valu

e ch

ain,

to

asse

ss t

heco

ntrib

utio

ns t

hey

can

mak

e to

im

prov

e su

stai

nabl

e pr

oduc

tion

for

smal

l pr

oduc

ers

in G

hana

.

The

rese

arch

com

bine

d tw

o an

alyt

ical

app

roac

hes:

(a)

valu

e ch

ain

map

ping

, w

hich

tra

ces

linka

ges

from

pro

duct

ion

thro

ugh

to f

inal

con

sum

ptio

n of

a go

od, i

nclu

ding

initi

al in

puts

,pr

oduc

tion,

dist

ribut

ion,

man

ufac

turin

g, r

etai

ling

and

cons

umpt

ion;

and

(b)

sus

tain

able

prod

uctio

n an

d liv

elih

ood

appr

oach

es,

whi

ch e

xam

ine

inco

mes

, pr

oduc

tive

capa

city

and

wid

erw

ellb

eing

now

and

in t

he f

utur

e in

the

con

text

of

the

wid

erso

cial

and

inst

itutio

nal

envir

onm

ent

in w

hich

pro

duct

ion

take

s pl

ace.

Con

sum

erm

arke

tsC

onsu

mer

mar

kets

forc

hoco

late

con

fect

ione

ry h

ave

also

bee

n ra

pidl

y ch

angi

ng. M

arke

ts a

reno

w m

ore

diff

eren

tiate

d, w

ith s

ome

cons

umer

s fo

cusin

g on

pric

e, b

ut o

ther

s be

com

ing

mor

e se

nsiti

ve t

o fa

ctor

s su

ch a

s qu

ality

and

soc

ial

and

envir

onm

enta

l pr

oces

ses

ofpr

oduc

tion

for

whi

ch t

hey

are

prep

ared

to

pay

a pr

emiu

m. T

hree

mar

ket

segm

ents

are

emer

ging

: (i)

high

-qua

lity

nic

he c

hoco

late

(inc

ludi

ng si

ngle

orig

in, F

airt

rade

and

org

anic

s); (i

i)m

ains

trea

m q

ualit

y ch

ocol

ate;

and

(iii

) bu

lk l

ow-v

alue

cho

cola

te.

Agg

rega

te g

row

th i

nch

ocol

ate

conf

ectio

nery

has

ave

rage

d 2-

3% p

eran

num

ove

rth

e pa

st d

ecad

e. H

owev

er,

grow

th in

the

hig

h-qu

ality

nic

he e

nd o

fth

e m

arke

t ha

s be

en m

uch

high

er, f

orex

ampl

e an

aver

age

23%

ann

ual g

row

th r

ate

in F

airt

rade

coc

oa, a

lbei

t fr

om a

low

bas

e. M

anuf

actu

rers

and

proc

esso

rs w

ithin

the

coc

oa-c

hoco

late

val

ue c

hain

are

hav

ing

to b

e in

crea

singl

yre

spon

sive

to t

rend

s in

thi

s di

ffer

entia

ted

cons

umer

mar

ket.

This

pres

ents

cha

lleng

es f

orco

coa

prod

ucer

s w

ho

need

to

re

spon

d to

th

e re

quire

men

ts

ofpr

oces

sors

an

dm

anuf

actu

rers

.

The

aim

of

the

stud

yw

as t

o ex

amin

e th

efa

ctor

s th

at m

ake

upsu

stai

nabl

e pr

oduc

tion

for

coco

a fa

rmer

s in

Gha

na, f

ocus

ing

on t

heso

cio-

econ

omic

dim

ensi

ons

ofsu

stai

nabi

lity

.

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaC

onte

nts

8

conte

nts

6.K

ey f

indi

ngs

and

disc

ussi

on o

ffi

ndin

gs f

rom

the

cas

e st

udy

55

6.1

Wid

erpe

rspe

ctiv

es f

rom

coc

oa s

ecto

r55

6.2

Enab

ling

envi

ronm

ent

and

farm

erpa

rtic

ipat

ion

57

6.3

Farm

ers

pers

pect

ives

on

prod

uctio

n59

6.4

Prod

uctio

n co

nstr

aint

s62

6.5

Inco

me

and

livel

ihoo

d di

vers

ifica

tion

63

6.6

Soci

al a

men

ities

64

6.7

Satis

fact

ion

with

soc

ial a

men

ities

66

6.8

Yout

h em

ploy

men

t67

7.Th

e fu

ture

of

coco

a: f

arm

eran

d yo

uth

aspi

rati

ons

69

7.1Fa

rmer

s as

pira

tions

69

7.2Yo

uth

aspi

ratio

ns70

7.3R

ole

ofco

coa

farm

ing

in f

ulfil

ling

aspi

ratio

ns71

7.4Fu

ture

sus

tain

abili

ty o

fco

coa

73

7.5Yo

uth

perc

eptio

ns o

fth

e fu

ture

of

coco

a 75

8.K

ey is

sues

for

sust

aina

ble

coco

a pr

oduc

tion

77

8.1

Inco

me

and

pove

rty

77

8.2

Cre

dit

and

finan

ce77

8.3

Prod

uctio

n78

8.4

Labo

uran

d la

nd80

8.5

Mar

ket

acce

ss82

8.6

Com

mun

ity-b

ased

org

anisa

tion

82

8.7

Soci

al a

men

ities

83

8.8

Glo

bal v

alue

cha

in84

8.9

Mak

ing

coco

a fa

rmin

g a

rea

l job

87

8.10

Para

digm

shi

ft88

9.C

oncl

udin

g R

emar

ks89

App

endi

ces

91

App

endi

x 1:

An

empi

rical

ana

lysis

of

perf

orm

ance

and

wel

fare

indi

cato

rs

amon

g th

e sa

mpl

ed c

ocoa

farm

hou

seho

lds

91

App

endi

x 2:

Bib

liogr

aphy

94

g

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaE

xecu

tive

sum

mar

y

11

Gha

na c

ase

stud

yA

cas

e st

udy

was

und

erta

ken

to a

sses

s th

e su

stai

nabi

lity

ofco

coa

prod

uctio

n in

the

con

text

ofth

e ch

angi

ng g

loba

l va

lue

chai

n. T

he s

tudy

was

und

erta

ken

in s

ix c

omm

uniti

es a

cros

sth

ree

regi

ons:

Ash

anti,

Wes

tern

Sou

th a

nd E

aste

rn R

egio

ns. T

he c

ase

stud

y w

as b

ased

on

asu

rvey

of2

17 fa

rmer

s, fo

cus

grou

p di

scus

sions

(45

owne

r-op

erat

ors

and

care

take

rope

rato

rs,

12 y

outh

and

12

wom

en),

24 li

fe h

istor

ies

and

key

info

rman

t in

terv

iew

s w

ith a

ctor

s in

eac

hco

mm

unity

and

thr

ough

out

the

coco

a va

lue

chai

n. T

his

was

not

a s

tatis

tical

ly r

epre

sent

ative

sam

ple,

but

pro

vided

an

insig

ht in

to c

urre

nt a

nd fu

ture

cha

lleng

es fa

cing

coc

oa p

rodu

cers

.

The

stud

y hi

ghlig

hted

a s

ocio

-eco

nom

icpr

ofile

of

coco

a fa

rmer

s as

an

agei

ng p

opul

atio

n(a

vera

ge a

ge 5

1 ye

ars

in t

his

stud

y) o

fw

hom

46

per

cent

are

mig

rant

s, w

ith a

hig

h re

lianc

eon

car

etak

erfa

rmer

s. C

ocoa

pro

duct

ion

is la

bour

-int

ensiv

e, b

ut a

t fa

rm l

evel

the

re i

s a

shor

tage

of

hire

d la

bour

in t

he s

ecto

r, al

ong

with

inc

reas

ed l

abou

rco

sts.

Mos

t fa

rmla

bour

ers

tend

to b

e m

en a

nd s

omet

imes

som

e of

them

are

also

farm

ope

rato

rs w

ho m

ight

need

ext

ra m

oney

to

mee

t so

me

recu

rren

t ex

pend

iture

.

The

high

cos

t of

labo

uran

d hi

gh c

ost

ofin

puts

hav

e co

ntrib

uted

to

man

y fa

rmer

s fa

iling

to

adop

t im

prov

ed p

ract

ices

and

mai

ntai

n th

eirf

arm

s as w

ell a

s the

y m

ight

. The

re is

a lo

w ra

tioof

hybr

id t

rees

to

trad

ition

al t

rees

on

coco

a fa

rms,

and

low

use

of

nurs

ery

culti

vate

d hy

brid

seed

lings

. Unt

il re

cent

ly, m

any

farm

ers

did

not

wee

d ar

ound

the

irfa

rms

thre

e tim

es a

yea

r,th

ey s

carc

ely

spra

yed

thei

rco

coa

tree

s ag

ains

t ca

psid

and

bla

ck p

od d

iseas

es a

nd t

hey

left

mist

leto

es t

o gr

ow o

n th

e tr

ees.

The

resu

lt of

negl

ect

is a

low

coc

oa y

ield

. Coc

oa y

ield

s of

less

tha

n 40

0 k

g pe

rhe

ctar

eco

mpa

res

with

an

optim

istic

view

tha

t yi

elds

in G

hana

cou

ld p

oten

tially

incr

ease

to 10

00

kg

per

hect

are.

Gha

na c

lear

ly h

as p

oten

tial

to e

xpan

d its

pos

ition

as

a su

pplie

rw

ithin

the

mai

nstr

eam

(and

pot

entia

lly t

he u

pper

nich

e) s

egm

ents

of

the

choc

olat

e in

dust

ry.

The

Gov

ernm

ent

has

iden

tifie

d ag

ricul

ture

, and

coc

oa in

par

ticul

ar, a

s ha

ving

the

pote

ntia

lto

mak

e an

impo

rtan

t co

ntrib

utio

n to

eco

nom

icgr

owth

, and

to

Gha

na m

eetin

g its

goa

lsfo

rpov

erty

redu

ctio

n. H

owev

er, c

ocoa

hou

seho

lds s

urve

yed

in th

is st

udy

wer

e fo

und

to h

ave

an e

stim

ated

mea

n pe

rca

pita

dai

ly in

com

e fr

om c

ocoa

alo

ne o

fU

S$0.

42, a

nd a

mea

n pe

rca

pita

dai

ly in

com

e fr

om c

ocoa

and

all

othe

rso

urce

s of

US$

0.63

. The

res

ults

impl

y th

at in

the

coco

a gr

owin

g ar

eas

sam

pled

for

this

case

stu

dy, m

embe

rs o

ffa

rm h

ouse

hold

s de

pend

on c

ocoa

for

two

third

s of

thei

rin

com

e an

d on

ave

rage

ear

n le

ss t

han

US$

1.00

per

day

per

capi

ta o

vera

ll.

Ifpo

vert

y am

ongs

t co

coa

farm

ers

is to

be

addr

esse

d, a

nd g

ood-

qual

ity c

ocoa

pro

duce

d on

a su

stai

nabl

e ba

sis o

vert

he lo

ng te

rm, a

gric

ultu

ral p

rodu

ctivi

ty a

nd in

com

es n

eed

to ri

se.T

his

is a

syst

emic

chal

leng

e w

hich

fac

es a

ll pa

rtie

s in

the

cha

in, p

artic

ular

ly t

hose

in G

hana

. It

mea

ns p

ayin

g sy

stem

atic

atte

ntio

n to

var

iety

and

cho

ice,

cul

tivat

ion

patt

erns

and

fer

tilise

ran

d pe

stic

ide

inpu

ts t

o im

prov

e la

nd p

rodu

ctivi

ty,

and

som

e fo

rms

ofm

echa

nisa

tion

toin

crea

se

labo

urpr

oduc

tivity

on

a

sust

aine

d ba

sis.

Farm

ers

face

pa

rtic

ular

prod

uctio

nco

nstr

aint

s in

rel

atio

n to

acc

ess

to f

inan

ce a

nd la

ck o

fcr

edit,

acc

ess

to h

ybrid

see

ds a

ndse

edlin

gs,

info

rmat

ion

on f

ertil

isers

, an

ade

quat

e sp

rayi

ng p

rogr

amm

e, a

nd p

rovis

ion

ofex

tens

ion

serv

ices

. Mar

ket

acce

ss c

an b

e co

nstr

aine

d by

lack

of

tran

spor

t, po

orro

ads,

lack

ofco

mm

unic

atio

n, a

nd p

oor

info

rmat

ion

flow

s. Th

is is

a pa

rtic

ular

prob

lem

for

farm

ers

insm

alle

ror

mor

e re

mot

e lo

catio

ns.

In t

erm

s of

soci

al a

men

ities

, far

mer

s an

d ca

reta

kers

wou

ld li

ke t

o ha

ve t

he s

ame

amen

ities

as t

hose

in t

he t

owns

and

citi

es. M

any

farm

ing

com

mun

ities

wou

ld li

ke t

o ha

ve e

lect

ricity

and

good

drin

king

wat

er(a

t le

ast

a ha

nd-d

ug w

ell

orbo

reho

le w

ith a

pum

p),

plac

es o

fco

nven

ienc

e, s

choo

ls an

d he

alth

fac

ilitie

s. Fo

rsm

alle

rco

mm

uniti

es,

prio

rity

for

soci

alam

eniti

es te

nded

to b

e ro

ads,

scho

ols a

nd c

linic

s; an

d ve

ry b

asic

need

s suc

h as

pot

able

wat

eran

d pu

blic

toile

t fa

cilit

ies

wer

e hi

ghly

ran

ked.

Lar

ger

com

mun

ities

ten

d to

hav

e th

ese

basic

amen

ities

but

nee

d im

prov

emen

ts, s

uch

as n

ew p

ipes

to

ensu

re a

reg

ular

flow

ofw

ater

; or

reha

bilit

atio

n an

d ex

tens

ions

of

exist

ing

scho

ol b

uild

ings

. A n

eed

for

form

al e

mpl

oym

ent

oppo

rtun

ities

cam

e up

freq

uent

ly.

Thes

e fin

ding

s po

se m

ajor

prob

lem

s fo

rth

e fu

ture

via

bilit

y of

coco

a fa

rmin

g in

Gha

na. T

hest

udy

exam

ined

the

per

cept

ions

for

the

futu

re a

nd t

he a

spira

tions

of

coco

a fa

rmer

s. Th

em

ajor

ity sa

id t

hat

coco

a fa

rmin

g as

an

occu

patio

n ha

d no

t m

et t

heir

expe

ctat

ions

, and

man

yw

ere

doub

tful

that

they

cou

ld a

chie

ve th

eirl

ife g

oals

thro

ugh

coco

a fa

rmin

g al

one

(alth

ough

this

varie

d by

regi

on a

nd si

ze o

fcom

mun

ity).

The

olde

rfar

mer

s bel

ieve

d th

at c

ocoa

was

thei

r

The

Gov

ernm

ent

has

iden

tifi

ed a

gric

ultu

re,

and

coco

a in

par

ticu

lar,

as h

avin

g th

e po

tent

ial

to m

ake

an i

mpo

rtan

tco

ntri

buti

on t

o ec

onom

icgr

owth

, an

d to

Gha

nam

eeti

ng i

ts g

oals

for

pove

rty

redu

ctio

n.

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaE

xecu

tive

sum

mar

y

10

Acr

oss

the

glob

al c

ocoa

-cho

cola

te v

alue

cha

in,

chan

ges

in t

he c

hoco

late

con

fect

ione

rym

anuf

actu

re se

gmen

t ap

pear

out

ofba

lanc

e w

ith t

hose

at

the

coco

a pr

oduc

tion

end

ofth

ech

ain.

The

re h

as b

een

a gr

owin

g co

ncen

trat

ion

amon

gst m

anuf

actu

rers

and

pro

cess

ors,

with

a sh

arp

decl

ine

in th

e nu

mbe

rofs

peci

alise

d tr

ader

s. Te

n ch

ocol

ate

man

ufac

turin

g co

mpa

nies

now

acc

ount

for

43%

of

glob

al s

ales

. M

anuf

actu

rers

and

pro

cess

ors

have

dev

elop

edst

rate

gies

to

expa

nd h

ighe

rva

lue

activ

ities

, par

ticul

arly

in r

elat

ion

to t

he h

igh-

valu

e ni

che

and

mai

nstr

eam

qua

lity

segm

ents

of

the

mar

ket.

They

hav

e be

com

e at

tune

d to

gro

win

gco

nsum

erco

ncer

ns w

ith s

ocia

l and

env

ironm

enta

l iss

ues.

Man

y co

mpa

nies

hav

e in

trod

uced

corp

orat

e so

cial

res

pons

ibili

ty (C

SR) i

nitia

tives

, bot

h in

res

pons

e to

adv

erse

med

ia p

ress

ure

(such

as

over

the

use

ofch

ild la

bour

in W

est

Afr

ica)

, and

incr

easin

g ch

alle

nges

to

the

futu

resu

stai

nabi

lity

ofth

e co

coa

sect

or. T

here

is in

crea

sing

dem

and

from

man

ufac

ture

rs f

orth

esu

stai

ned

avai

labi

lity

ofhi

gh-q

ualit

y co

coa

that

is p

rodu

ced

in a

ccor

danc

e w

ith in

tern

atio

nal

soci

al a

nd e

nviro

nmen

tal s

tand

ards

.

Pro

duct

ion

In c

ontr

ast

prod

uctio

n re

mai

ns c

hara

cter

ised

by s

mal

l-sc

ale

farm

ing

in m

any

coun

trie

s,pa

rtic

ular

ly W

est

Afr

ica.

In m

ost

prod

ucer

coun

trie

s di

sman

tling

ofm

arke

ting

boar

ds u

nder

econ

omic

liber

alisa

tion

has

incr

ease

d fra

gmen

tatio

n w

ithin

th

e se

ctor

. N

ew

supp

lier

coun

trie

s ha

ve e

xpan

ded

prod

uctio

n, p

artic

ular

ly in

Asia

. Ove

rth

e pa

st d

ecad

e th

ere

has

been

a s

ecul

arde

clin

e in

pric

es, w

ith a

vera

ge w

orld

mar

ket

pric

es f

orco

coa

13%

low

erin

200

5/6

than

in 19

93/4

. The

shar

e of

final

pric

e of

an a

vera

ge U

Kba

rofm

ilk c

hoco

late

goi

ngto

coc

oa fa

rmer

s is a

n es

timat

ed 4

%. T

here

has

also

bee

n a

decl

ine

in o

vera

ll qu

ality

ofc

ocoa

bean

s, th

roug

h sh

ort-

cutt

ing

ofm

ore

cost

ly p

rodu

ctio

n m

etho

ds. T

his

runs

cou

nter

to t

hein

crea

sed

dem

and

for

high

qua

lity

coco

a be

ans.

Gha

na h

as n

ot b

een

imm

une

from

inte

rnat

iona

l tre

nds.

How

ever

, it

has

bene

fited

from

the

cont

inue

d ro

le o

fth

e G

hana

Coc

oa B

oard

(CO

CO

BO

D),

desp

ite p

ress

ure

to fu

lly li

bera

lise

the

sect

orin

the

198

0s

and

late

r. C

OC

OB

OD

has

pro

vided

sup

port

to

farm

ers

and

coor

dina

ted

the

mar

ketin

g of

Gha

naia

n co

coa

on in

tern

atio

nal m

arke

ts. T

his

has

help

ed t

om

aint

ain

the

qual

ity o

fG

hana

ian

coco

a w

hich

ear

ns a

n in

tern

atio

nal p

rice

prem

ium

. Mor

eim

port

antly

, Gha

nas

high

qua

lity

coco

a ha

s m

eant

tha

t it

has

been

abl

e to

sel

l mor

e of

itsco

coa

than

oth

erpr

oduc

erco

untr

ies

on fo

rwar

d m

arke

ts (u

p to

70

%).

Cru

cial

ly, t

his

enab

les

dom

estic

prod

ucer

pric

es t

o be

set

in

a m

anne

rw

hich

pro

tect

s fa

rmer

s fr

om s

easo

nal

vola

tility

in

the

mar

kets

. Gha

na i

s in

a p

ositi

on t

o ex

pand

with

in t

he m

ains

trea

m q

ualit

yse

gmen

t of

the

coco

a m

arke

t. It

is an

impo

rtan

t ex

port

erof

Fairt

rade

coc

oa (t

hrou

gh K

uapa

Koko

o Lt

d) a

nd h

as p

oten

tial t

o ex

pand

orig

in a

nd o

rgan

icco

coa

prod

uctio

n

nich

e m

arke

tsw

here

the

hig

hest

pre

mia

can

be

earn

ed.

How

ever

desp

ite

this,

G

hana

fa

ces

signi

fican

t ch

alle

nges

in

m

aint

aini

ng

the

futu

resu

stai

nabi

lity

ofits

coc

oa p

rodu

ctio

n. A

nnua

l pro

duct

ion

ofco

coa

is w

ell b

elow

its

pote

ntia

lca

paci

ty, w

ith p

rodu

ctivi

ty (o

utpu

t pe

rhe

ctar

e) a

t 40

% o

fits

est

imat

ed p

oten

tial.

It ha

s an

agei

ng fa

rmer

popu

latio

n, a

nd fa

ces

an e

xodu

s of

yout

h fr

om t

he s

ecto

r. Th

e ch

alle

nges

itfa

ces

are

both

inte

rnal

and

ext

erna

l, in

the

con

text

ofa

tra

nsfo

rmin

g gl

obal

cho

cola

te v

alue

chai

n. T

hese

incl

ude:

(i) P

rodu

ctio

n ch

alle

nges

e

xpan

ding

pro

duct

ion

and

prod

uctiv

ity t

o su

stai

n fa

rmer

inco

me

and

expo

rt g

row

th w

hilst

mai

ntai

ning

qua

lity.

(ii) S

ocia

l cha

lleng

es

m

eetin

g th

e on

goin

g ex

pect

atio

ns o

ffar

mer

s and

thei

rcom

mun

ities

that

cur

rent

ly s

ugge

st c

ocoa

farm

ing

will

not

be

a ch

oice

for

futu

re g

ener

atio

ns. T

his

has

been

fue

lled

by r

ural

-urb

an m

igra

tion,

the

com

mun

icat

ions

rev

olut

ion

and

risin

g so

cio-

econ

omic

expe

ctat

ions

. Thi

s is

coup

led

with

gre

ater

soci

al a

war

enes

s by

con

sum

ers

inex

tern

al m

arke

ts l

eadi

ng t

o an

inc

reas

ing

mar

ket

expe

ctat

ion

that

coc

oa i

s fa

rmed

with

out

the

wor

st fo

rms

ofch

ild la

bour

, and

a ra

pid

grow

th in

the

dem

and

forf

air-

trad

ean

d or

gani

cch

ocol

ate:

(iii)

Rep

utat

ion

chal

leng

e

ensu

ring

that

Gha

na s

usta

ins

its h

igh

repu

tatio

n in

the

coc

oain

dust

ry in

the

face

ofm

ount

ing

com

petit

ive a

nd so

cial

cha

lleng

es a

nd is

abl

e to

pro

mot

eits

elf

as a

pro

gres

sive

prod

ucer

.

g

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaE

xecu

tive

sum

mar

y

13

Com

mun

ity B

ased

Org

anisa

tion:

Se

nsiti

satio

n of

farm

ers

abou

t be

nefit

s of

colla

bora

tion,

an

d en

hanc

ed

supp

ort

for

com

mun

ity-b

ased

org

anisa

tions

.

Soci

al P

rovi

sion:

Be

tter

prov

ision

of

scho

ols

and

teac

her

ince

ntive

s in

coc

oa-g

row

ing

area

s. Re

view

and

exte

nsio

n of

CO

CO

BOD

Sch

olar

ship

pro

gram

me.

Be

tter

prov

ision

ofh

ealth

clin

ics,

ince

ntive

s for

heal

th w

orke

rs a

nd a

cces

s to

heal

th in

sura

nce

forf

arm

ers

in c

ocoa

regi

ons.

Ex

tend

pro

visio

n of

an a

fford

able

hou

sing

sche

me

to lo

w-in

com

e fa

rmer

s.

Glo

bal V

alue

Cha

in:

Re

view

oft

he ro

le o

fLice

nsed

Buy

ing

Com

pani

es (L

BC

s), su

pply

chai

n lo

gist

ics a

nd p

aym

ent

syst

ems

by L

BCs

to c

ocoa

farm

ers.

Su

ppor

t an

d ad

vice

to fa

rmer

s an

d pr

oduc

ergr

oups

wish

ing

to p

ursu

e or

igin

, org

anic

and

Fairt

rade

coc

oa, a

nd e

nsur

e be

nefit

s ar

e pa

ssed

bac

k to

farm

ers.

C

SR f

unds

cou

ld b

e m

ade

avai

labl

e to

sup

port

inn

ovat

ions

and

cap

acity

-bui

ldin

g th

aten

hanc

es p

rodu

ctivi

ty, m

arke

t ac

cess

and

soc

ial p

rovis

ion

in c

ocoa

com

mun

ities

.

Mak

ing

Farm

ing

a re

al jo

b:

G

over

nmen

t, C

OC

OBO

D, L

BCs,

farm

eror

gani

satio

ns a

nd c

hoco

late

man

ufac

ture

rs s

houl

dw

ork

toge

ther

to fo

rmul

ate

a pl

an to

intr

oduc

e yo

uth

to c

ocoa

farm

ing.

Para

digm

Shi

ft:

Ex

tend

ing

publ

ic-p

rivat

e pa

rtne

rshi

ps a

long

the

val

ue c

hain

, inv

olvin

g al

l tho

se a

ctor

s abl

e to

mak

e a

posit

ive c

ontr

ibut

ion

to e

nhan

cing

sus

tain

able

pro

duct

ion.

A

mor

e in

tegr

ated

ap

proa

ch

invo

lving

al

l va

lue

chai

n ac

tors

, ba

sed

on

publ

ic-p

rivat

eco

llabo

ratio

n, i

s ne

eded

. Th

is in

clud

es c

ocoa

pro

cess

ors,

choc

olat

e m

anuf

actu

rers

, na

tiona

lgo

vern

men

t an

d re

leva

nt

Min

istrie

s, C

OC

OB

OD

, Li

cens

ed

Buy

ing

Com

pani

es,

Dist

rict

Ass

embl

ies,

Com

mun

ity-b

ased

Org

anisa

tions

, far

mer

asso

ciatio

ns a

nd c

ivil s

ocie

ty o

rgan

isatio

ns.

It ne

eds

to e

nsur

e pa

rtic

ipat

ion

by f

arm

ers

(esp

ecia

lly y

oung

erfa

rmer

s) in

ord

erto

ach

ieve

sust

aina

bilit

y of

coco

a pr

oduc

tion,

exp

and

Gha

naia

n co

coa

expo

rts

on w

orld

mar

kets

, an

dad

vanc

e th

e co

ntrib

utio

n of

coco

a pr

oduc

tion

to G

hana

ian

econ

omic

deve

lopm

ent.

Conc

lusi

onIn

con

clus

ion,

sig

nific

ant

chan

ges

are

taki

ng p

lace

with

in t

he c

ocoa

-cho

cola

te v

alue

cha

in. B

utth

ere

is cu

rren

tly a

n im

bala

nce

betw

een

the

man

ufac

turin

g an

d pr

oces

sing

end

com

pare

d to

the

coco

a pr

oduc

tion

end

ofth

e ch

ain.

M

anuf

actu

rers

and

pro

cess

ors

are

com

para

tivel

y w

ell

posit

ione

d at

the

hig

h-va

lue

cons

umer

end

ofth

e ch

ain.

Whe

reas

coc

oa p

rodu

cers

hav

efa

ced

decl

inin

g pr

ices

and

qua

lity,

low

sha

re o

ffin

al p

rice,

as

wel

l as

inc

reas

ing

mar

ket

conc

ern

in r

elat

ion

to s

ocia

l an

d en

viron

men

tal

prac

tices

. C

onsu

mer

dem

and

for

high

erqu

ality

cho

cola

te is

like

ly to

con

tinue

w

hich

man

ufac

ture

rs, p

roce

ssor

s an

d pr

oduc

ers

have

a jo

int

inte

rest

in m

eetin

g.

Gha

na h

as t

he p

oten

tial

to e

xpan

d w

ithin

the

qua

lity

segm

ent

ofth

e va

lue

chai

n, a

ndC

OC

OB

OD

to

nego

tiate

on

beha

lfof

farm

ers

in i

nter

natio

nal

fora

. H

owev

er,

it fa

ces

signi

fican

t ch

alle

nges

in m

oder

nisin

g th

e co

coa

sect

or. C

ruci

al fa

ctor

s ar

e th

e ne

ed t

o ra

iseth

e pr

oduc

tivity

of

coco

a fa

rmin

g, e

nhan

ce s

ocia

l pr

ovisi

on i

n co

coa

com

mun

ities

, an

dat

trac

t th

e yo

uth

who

are

ess

entia

l for

futu

re in

nova

tion

and

sust

aina

bilit

y of

prod

uctio

n.

In a

diff

eren

tiate

d co

nsum

erm

arke

t, G

hana

nee

ds t

o fin

d ro

utes

with

in t

he c

hoco

late

-coc

oava

lue

chai

n, s

o th

at fa

rmer

s ca

n en

gage

in h

ighe

rva

lue

coc

oa p

rodu

ctio

n th

at g

ener

ate

larg

erre

venu

es. T

his

can

be d

one

by:

Firs

tly,

enha

ncin

g th

e pr

ofile

of

Gha

naia

n co

coa

with

in t

hem

ains

trea

m q

ualit

y m

arke

t (fo

rex

ampl

e a

high

erpr

emiu

m fo

ren

surin

g in

tern

atio

nal s

ocia

l and

envir

onm

enta

l st

anda

rds

are

met

). Se

cond

ly, f

urth

erex

pand

ing

with

in t

he h

igh-

valu

e ni

che

segm

ent

ofth

e m

arke

t (p

artic

ular

ly th

roug

h th

e su

ppor

t of

cert

ifica

tion

and

expa

nsio

n of

Fairt

rade

, or

gani

can

d or

igin

coc

oa).

Third

ly, r

aisin

g th

e pr

ofile

of

Gha

naia

n co

coa

and

choc

olat

e of

Gha

naia

n-or

igin

as

com

ing

from

a d

ynam

ican

d pr

ogre

ssive

sec

tor,

both

amon

gst

prod

ucer

s an

d co

nsum

ers.

All

acto

rs w

ithin

the

val

ue c

hain

hav

e a

join

t in

tere

st in

supp

ortin

g th

e pr

ovisi

on o

fco

mm

erci

al in

cent

ives

that

att

ract

you

ng a

nd in

nova

tive

coco

afa

rmer

s, en

hanc

ing

the

sust

aina

bilit

y of

Gha

naia

n co

coa

prod

uctio

n an

d th

e fu

ture

expa

nsio

n of

the

qual

ity c

hoco

late

mar

ket.

Cru

cial

fac

tors

are

th

ene

ed t

o r

aise

the

pro

duct

ivit

y o

fco

coa

farm

ing,

enh

ance

so

cial

pro

visi

on

in c

oco

aco

mm

unit

ies,

and

att

ract

the

yout

h w

ho a

re e

ssen

tial

for

futu

re i

nnov

atio

n an

dsu

stai

nabi

lity

ofpr

oduc

tion

.

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaE

xecu

tive

sum

mar

y

12

best

opt

ion,

but

not

for

thei

rch

ildre

n. T

he s

tudy

foun

d th

at t

here

are

sig

nific

ant

diff

eren

ces

in p

rodu

ctivi

ty b

y ag

e of

farm

ers,

with

old

erfa

rmer

s pr

oduc

ing

low

eryi

elds

per

acre

tha

nyo

unge

rfa

rmer

s. Th

e pr

ofile

of

an a

gein

g fa

rmer

popu

latio

n an

d la

ck o

fin

tere

st in

coc

oafa

rmin

g by

you

th p

rese

nts

a m

ajor

chal

leng

e to

incr

easin

g gr

owth

and

ens

urin

g th

e fu

ture

sust

aina

bilit

y of

the

coco

a se

ctor

.

The

stud

y no

ted

the

impo

rtan

ce o

fat

trac

ting

yout

h an

d re

duci

ng t

he a

vera

ge a

ge o

ffa

rmer

s. Yo

ung

and

mor

e ed

ucat

ed p

erso

ns w

ere

foun

d to

wor

k on

farm

s th

at w

ere

mor

epr

oduc

tive

than

tho

se o

fol

der

farm

ers,

and

wer

e m

ore

likel

y to

int

rodu

ce i

nnov

ative

prod

uctio

n m

etho

ds. A

ttra

ctin

g an

d re

tain

ing

youn

g fa

rmer

s in

to t

he s

ecto

ris

thus

ess

entia

lfo

rth

e lo

ng-t

erm

sus

tain

abili

ty a

nd g

row

th o

fth

e co

coa

sect

or.

Man

y fa

rmer

s int

ervie

wed

did

not

wan

t the

irch

ildre

n to

wor

k in

the

coco

a se

ctor

, and

you

ngpe

ople

with

som

e ed

ucat

ion

wer

e lik

ely

to l

eave

coc

oa f

orbe

tter

paid

wor

k el

sew

here

.W

hen

focu

s gr

oups

mem

bers

wer

e as

ked

why

coc

oa f

arm

ing

was

suc

h an

und

esira

ble

voca

tion

for

thei

rch

ildre

n, t

hey

answ

ered

tha

t it

was

low

-sta

tus

wor

k w

ith li

ttle

pro

spec

ts,

and

that

it w

as d

ange

rous

and

bac

kbre

akin

g w

ork

with

out

com

men

sura

te r

ewar

ds.

The

youn

g pe

ople

inte

rvie

wed

sug

gest

ed t

hey

wou

ld b

e w

illin

g to

und

erta

ke c

ocoa

farm

ing

ifco

nditi

ons

wer

e be

tter

than

tho

se e

ndur

ed b

y th

eirp

aren

ts. C

ocoa

pric

es a

nd p

rofit

abili

tyof

coco

a pr

oduc

tion

wou

ld a

lso h

ave

to in

crea

se. A

n im

prov

emen

t in

the

sup

port

cur

rent

lygi

ven

farm

ers,

and

a re

cogn

ition

oft

heir

cont

ribut

ions

, wou

ld h

elp

youn

g pe

ople

thin

k m

ore

high

ly a

bout

coc

oa fa

rmin

g, a

nd b

e at

leas

t w

illin

g to

con

sider

it as

a li

velih

ood

activ

ity.

The

stud

y yi

elde

d ev

iden

ce t

hat

youn

g pe

ople

do

not

com

plet

ely

disc

ount

coc

oa f

arm

ing,

but

that

the

irpr

efer

red

mod

el is

of

a co

mm

erci

alise

d en

terp

rise

that

doe

s no

t re

quire

as

muc

h ph

ysic

al la

bour

, and

doe

s no

t ha

ve t

o be

a fu

ll-tim

e oc

cupa

tion.

Ifth

ese

new

sys

tem

sof

coco

a pr

oduc

tion

can

be e

xplo

red

and

supp

orte

d, c

ocoa

will

con

tinue

to

feat

ure

inpe

ople

s as

pira

tions

, and

will

con

tinue

to

prom

ote

loca

l and

nat

iona

l dev

elop

men

t.

A

wor

ksho

p he

ld

with

ke

y st

akeh

olde

rs

iden

tifie

d ke

y iss

ues

that

ne

ed

addr

essin

g.

The

follo

win

g is

a br

iefs

umm

ary

ofth

e iss

ues

high

light

ed:

Cre

dit

and

Fina

nce:

En

hanc

ed c

redi

t fa

cilit

ies

and

Rura

l Ban

king

infra

stru

ctur

e

Prod

uctio

n:

M

ore

farm

ered

ucat

ion

and

acce

ss to

fert

iliser

.

Ex

tend

ed p

rogr

amm

e of

mas

s pr

oduc

tion

and

dist

ribut

ion

ofco

coa

hybr

id s

eeds

and

seed

lings

to e

nsur

e av

aila

bilit

y to

farm

ers,

with

con

tinue

d re

sear

ch to

dev

elop

the

se.

Fu

rthe

rin

vest

igat

ion

ofth

e ef

fect

ivene

ss o

fth

e m

ass-

spra

ying

prog

ram

me

and

furt

her

eval

uatio

n of

how

to im

prov

e its

impl

emen

tatio

n.

A

com

preh

ensiv

e st

udy

ofex

tens

ion

serv

ices.

Re-e

stab

lishi

ng F

arm

erTr

aini

ng C

entr

es t

oen

hanc

e fa

rmer

part

icip

atio

n, a

nd fa

cilit

ate

adop

tion

ofin

nova

tions

to

impr

ove

prod

uctiv

ityan

d m

eet

inte

rnat

iona

l qua

lity

stan

dard

s.

Su

ppor

t an

d be

tter

info

rmat

ion

to e

nhan

ce c

rop

dive

rsifi

catio

n by

coc

oa fa

rmer

s.

Labo

ur a

nd L

and:

M

ore

effic

ient

use

ofl

abou

rth

roug

h ch

angi

ng p

rodu

ctio

n m

etho

ds a

nd a

red

uctio

n in

the

elem

ent

ofdr

udge

ry.

Su

ppor

t for

mul

tista

keho

lder

initi

ative

s inv

olvin

g po

litic

ians

and

civi

l soc

iety

org

anisa

tions

that

wor

k w

ith fa

rmer

s to

add

ress

the

use

ofc

hild

labo

ur.

In

Gha

na, a

land

ref

orm

pro

ject

is c

urre

ntly

unde

rway

. The

issu

e of

coco

a fa

rm la

nd s

houl

dbe

give

n sp

ecifi

cat

tent

ion

to se

e ho

w sy

stem

s ofl

and

tenu

re c

an o

pen

up a

cces

s to

land

for

coco

a fa

rmin

g.

Mar

ket

Acc

ess:

En

hanc

e m

arke

t ac

cess

thr

ough

im

prov

emen

ts t

o ro

ads,

tran

spor

t an

d co

mm

unica

tion

syst

ems

in c

ocoa

-gro

win

g re

gion

s.

Ifth

ese

new

sys

tem

sof

coco

a pr

oduc

tion

can

be e

xplo

red

and

supp

orte

d,co

coa

will

con

tinu

e to

feat

ure

in p

eopl

es

aspi

rati

ons,

and

wil

lco

ntin

ue t

o pr

omot

elo

cal

and

nati

onal

deve

lopm

ent.

g

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaO

verv

iew

of

proj

ect

15

1. OVERV

IEW

OF

PRO

JECT

1.1

Intr

oduc

tion

Gha

na i

s th

e se

cond

lar

gest

exp

orte

rof

coco

a in

the

wor

ld a

fter

Cot

e d

Ivoire

. It

has

are

puta

tion

for

prod

ucin

g so

me

ofth

e hi

ghes

t-qu

ality

coc

oa a

nyw

here

. Coc

oa p

lays

a k

eyro

le in

the

dev

elop

men

t of

Gha

naia

n ec

onom

y. It

is th

e se

cond

larg

est

expo

rt o

ut o

fGha

na,

with

exp

ort

earn

ings

ofU

S$1,1

87.4

mill

ion

in 2

00

6 fr

om c

ocoa

(SG

ER 2

00

6). T

he s

igni

fican

tgr

owth

in c

ocoa

out

put

in re

cent

yea

rs is

con

trib

utin

g to

the

redu

ctio

n of

pove

rty

in G

hana

,an

d he

lpin

g th

e co

untr

y to

ach

ieve

its

Mill

enni

um D

evel

opm

ent

Goa

ls (M

DG

s) (C

oulo

mbe

and

Wod

on 2

007

). To

mai

ntai

n th

is m

omen

tum

, G

hana

nee

ds t

o su

stai

n an

d ex

pand

its

posit

ion

with

in w

orld

coc

oa m

arke

ts.

How

ever

, the

re a

re a

num

ber

oflo

ng-t

erm

cha

lleng

es f

acin

g th

e G

hana

ian

coco

a se

ctor

.Pr

omin

ent

amon

gst

thes

e ar

e:

Sust

aina

bilit

y of

prod

ucti

on:Q

uest

ions

ove

rth

e su

stai

nabi

lity

ofco

coa

prod

uctio

n. T

his

isre

quire

d bo

th t

o m

aint

ain

outp

ut o

fth

e cu

rren

t co

nsist

ent

high

qua

lity,

and

to e

nsur

efa

rmer

s an

d th

eir

hous

ehol

ds a

dec

ent

livel

ihoo

d en

ablin

g th

em t

o co

ntin

ue f

arm

ing

effe

ctive

ly in

the

med

ium

-to-

long

term

. A p

artic

ular

chal

leng

e fo

rthe

futu

re is

the

low

leve

lof

inte

rest

exp

ress

ed b

y m

any

youn

g G

hana

ians

fro

m c

ocoa

-gro

win

g ar

eas

in b

ecom

ing

coco

a fa

rmer

s.

Soci

al s

tand

ards

:Eur

opea

n an

d N

orth

Am

eric

an c

onsu

mer

s ar

e re

quiri

ng r

ising

soc

ial a

nden

viron

men

tal

stan

dard

s. Th

ese

incl

ude

atta

inm

ent

ofin

tern

atio

nally

rec

ogni

sed

labo

urst

anda

rds

(incl

udin

g el

imin

atio

n of

the

wor

st f

orm

s of

child

lab

our)

and

ensu

ring

faire

rpa

rtic

ipat

ion

by fa

rmer

s in

the

coc

oa v

alue

cha

in.

The

hist

ory

ofC

adbu

ry1is

stee

ped

in a

phi

lant

hrop

ictr

aditi

on. T

he f

irm h

as a

long

hist

ory

ofso

urci

ng c

ocoa

fro

m G

hana

dat

ing

back

to

the

early

190

0s.

It pl

ayed

an

impo

rtan

t pa

rt in

the

orig

inal

dev

elop

men

t of

the

coco

a se

ctor

in t

he c

ount

ry. C

adbu

ry s

ourc

es a

ll its

coc

oafo

rth

e U

Km

arke

t fr

om G

hana

and

thi

s ac

coun

ts f

orap

prox

imat

ely

15%

of

Gha

nas

tota

lco

coa

expo

rts.

Gha

na i

s se

en a

s th

e m

ain

sour

ce o

fsu

pply

bec

ause

its

coc

oa i

s of

high

qual

ity, e

nsur

ing

the

flavo

urof

Cad

bury

s ch

ocol

ate.

Cad

bury

is a

ctive

ly e

ngag

ed in

cor

pora

teso

cial

res

pons

ibili

ty (

CSR

) in

itiat

ives

in t

he c

ocoa

and

con

fect

ione

ry s

ecto

rs. I

t ha

s a

long

reco

rd o

fpr

ovid

ing

soci

al s

uppo

rt t

o co

coa

farm

ers

and

thei

rco

mm

uniti

es i

n G

hana

(Cad

bury

Sch

wep

pes

CSR

Rep

ort

200

6). I

ts a

im is

to s

uppo

rt t

he G

hana

ian

coco

a se

ctor

toat

tain

sus

tain

able

pro

duct

ion

and

mee

t th

e so

cial

sta

ndar

ds i

ncre

asin

gly

dem

ande

d in

nort

hern

mar

kets

.

Bot

h th

e G

hana

ian

coco

a in

dust

ry a

nd C

adbu

ry h

ave

a st

rong

int

eres

t in

pro

mot

ing

the

deve

lopm

ent

ofa

coco

a se

ctor

able

to p

rodu

ce h

igh-

qual

ity a

nd d

iffer

entia

ted

coco

a. T

here

are

ther

efor

e m

utua

l ben

efits

to

both

par

ties

in p

ursu

ing

shar

ed o

bjec

tives

of

enha

ncin

gsu

stai

nabl

e pr

oduc

tion.

1In

th

is re

port

C

adbu

ry

will

be

re

ferr

ed

to

asC

adbu

ry S

chw

eppe

s or

shor

tene

d to

Cad

bury

.

14

g

Map

ping

Sus

tain

able

Pro

duct

ion

in G

hana

ian

Coc

oaO

verv

iew

of

proj

ect

17

2. P

rodu

cing

hig

h-qu

ality

coc

oa r

equi

res

inte

ract

ion

betw

een

chai

n pa

rtic

ipan

ts a

nd a

driv

eto

sys

tem

icef

ficie

ncy

and

qual

ity s

tand

ards

. The

se in

ter-

linka

ges

can

be r

evea

led

thro

ugh

anal

ysis

ofth

e va

lue

chai

n.

3. It

fac

ilita

tes

asse

ssm

ent

ofth

e fo

rms

ofch

ain

gove

rnan

ce r

equi

red

to m

eet

thes

eas

pira

tions

in

clud

ing

stan

dard

-set

ting,

pro

visio

n of

exte

nsio

n se

rvic

es, d

ecisi

ons a

ffec

ting

inco

rpor

atio

n of

supp

liers

, and

so

on.

1.3.

2 Su

stai

nabl

e pr

oduc

tion

/liv

elih

oods

Map

ping

the

val

ue c

hain

thr

ough

to

prod

ucer

leve

l he

lps

to c

aptu

re t

he d

ivers

e w

ays

inw

hich

coc

oa p

rodu

ctio

n af

fect

s liv

elih

oods

of

coco

a gr

ower

s, an

d th

ose

furt

her

alon

g th

eva

lue

chai

n, n

otab

ly i

nput

sup

plie

rs,

as w

ell

as s

o-ca

lled

mul

tiplie

r(o

rkn

ock-

on)

effe

cts

thro

ugh

coco

a gr

ower

s co

mm