Importance of the Crop
Stakeholders
Main Challenges
Agenda at the Global Level

For a given crop, the approach is not restricted to the conventional agricultural components related to increases in productivity, but rather the crop is considered 'as a whole' in all aspects of a chain (or a system), from its production through to its consumption or use by the consumers.

Importance of the Crop

Cocoa is a cash crop grown throughout the humid tropics with about 6.5 million hectares planted in 57 countries. Although cocoa has been cultivated for centuries in Central America, it is a relative newcomer to Africa, and even more so in Asia.

In 1998, World Production reached 2.7 million tons of cocoa beans. Africa holds a dominant position with almost 70% of production volumes, 40% coming from the Côte d'Ivoire. Ghana (15%) and Indonesia (12%) are two other important producers. The average yield is conventionally considered to be around 400 kg of beans/ha/year, but yields cover a wide range from 100 to 3,000 kg per hectare and even more.

Almost 90% of production come from smallholdings of less than 7 hectares, where cultivation is generally extensive. But production structures differ depending on the continent. In Africa and Indonesia, most production comes from smallholdings. In Malaysia, Ecuador and Brazil, relatively large estates still predominate.

In total, more than 20 million people depend directly on cocoa for their livelihood. Once produced and processed into fermented dried merchantable cocoa, the beans are bought from farmers by one or more successive traders, transported, then sold to grinders who make semi-manufactured products (liquor, butter, presscake, powder). These products are intended for chocolate makers or confectioners for the production of chocolate or chocolate-based products.

Approximately 90% of the production are exported in the form of beans or semi-manufactured cocoa products. Three countries export large volumes of cocoa beans or products: Côte d'Ivoire (over 1.2 million tons), Ghana and Indonesia (over 0.4 million tons) . The major importers of cocoa and cocoa products are Europe (over 1.2 million tons) and the USA (over 0.4 million tons).

After a short period of low level grindings, consumption is clearly escalating, with increased consumption of chocolate products and the emergence of new markets in Eastern Europe and Asia. Although controversial, some forecasts expect a production shortfall in the coming years.Despite this type of forecast in the long term, production continued to increase in the late 1990s and the price of cocoa (approximately 0.75 US$ in 1997 and 1998) went down to 0.5 US$/lb in 1999 and still decreased by 20% in 2000.

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Stakeholders

NARS

Around 15 producing countries have research facilities for cocoa - Africa, Asia and the Pacific, and Latin America. Research is conducted either in specific cocoa research institutes, sometimes driven by a Cocoa Board or in universities or other structures (most of the time government institutions).
NARS List

ARIs

Several research institutes or universities in the North work on cocoa, most of them in Europe and USA.
ARIs List

IARCs

IPGRI, for genetic resources, IITA for the sustainable production systems including cocoa in the humid tropics and ICRAF, for agroforestry with cocoa, are the main CGIAR institutes involved in cocoa research.

NGOs

Some NGOs work with other cocoa stakeholders and collaborate in development projects including cocoa, but none is cocoa specific, at least for cocoa research.

Farmers' Associations

The Cocoa Producers Alliance (CPA) represents most of the producing countries (except Indonesia) and regularly organises International Cocoa Research Conferences. Farmers are organised in cooperatives or associations that are quite strong, especially in Ghana, Cameroon, Nigeria and Venezuela.

Private Sector

Private companies in producing countries manage cocoa plantations (less than 10% of the total) or/and process cocoa beans to produce cocoa products for exportation. In the consuming countries, especially Europe and the USA, private companies grind cocoa beans or make chocolate or chocolate-based products. They contribute in cocoa research activities, essentially through their associations (CAOBISCO, BCCCA and IOCCC), some of them, to a large extent.

Donors

Some donor agencies fund cocoa development projects and some research activities (linked or not with the projects). Among them: CFC, World Bank, Europe, African Development Bank, AFD, USAID etc. Many projects are integrated projects where cocoa is only one component, except for CFC that funds specific cocoa projects.

International Organisations

Apart from CPA, the following two organisations play a significant role in the cocoa community and are key players in the setting up of a global programme:

• ICCO:
  International Cocoa Organisation, an intergovernmental body with the objectives of the development and strengthening of international cooperation in all sectors on the world cocoa economy and the provision of an appropriate forum for the discussion of all cocoa related matters.
• IOCCC:
  International Office of Cocoa, Chocolate and Sugar Confectionery. This is made up of an association of industries that encourages scientific research and furthers the development of the cocoa, chocolate and confectionery industry.

Main Challenges

In a context of increasing consumption, adapting supply to demand in terms of volume and quality may become a major question for the coming years. The production increase relied for a long time on an expansion of the planted areas. Limited forest availability imposes to promote intensified cocoa cultivation whilst maintaining the current areas. Thus, the competitiveness of cocoa cultivation becomes a decisive factor to stabilise the areas planted when cocoa is in competition with other crops.

The main challenges faced by the cocoa sector are the following:

• Improving production sustainability, possibly through adapted varieties and cost-effective crop management, including IPM and agroforetsry techniques and replanting;
• Limiting parasite pressure, a main limiting factor for cocoa production;
• Structuring the commodity chain, from a socio-economic point of view, especially in a context of liberalisation which leads to State withdrawal and greater involvement of private companies;
• Better identification of quality needs and controlling quality to meet more diversified customer requirements.

Agenda at the Global Level

At a special meeting held during the Kota Kinabalu International Cocoa Research Conference in October 2000, the cocoa community stakeholders identified the following components as a possible content for the proposed Global Cocoa Programme:

• Integrated Crop Management to improve profitability by increasing productivity, decreasing cost whilst maintaining farm viability/stability in times of fluctuating prices;
• Socio-Economics - The Farmers Point of View - the growers of the crop must be able to make a living from their farm and will not change their practices if there is no economic benefit. Moreover, young people may not enter cocoa farming/will leave family farms in search of better employment opportunities if they perceive cocoa farming to be unattractive. They need stability against short-term disaster and sustainability in the longer term;
• Economic Stability at International Level - A study on price fluctuations is necessary to see a clear transparent picture allowing for correction activities;
• Economic Stability at Farm Level - Costs of production and marketing merit detailed study in a number of cocoa growing environments;
• Environmental Considerations - It was appreciated that cocoa can be, and is, grown in an environmentally friendly way in many situations. Opportunities may exist for improved resource management and income;
• Consumers Point of View - consumers' choice of chocolate/cocoa products in preference to other snack foods is highly influenced by their perception of factors including health, social concern, environmental factors and quality.