1. Science-Based Development A regional perspective from STCP/IITA Martine Ngobo, Stephan Weise & STCP Team Sustainable Tree Crops Program International Institute of Tropical Agriculture February 17, 2008 Boston, MA

2. Low productivity, inefficient marketing, weak institutional and policy environment Some facts: Productivity has stagnated (1% over 10 yrs) Inefficient producers (most of the production comes from a few producers) Majority of farmers sell a few bags of cocoa 3-4 times a year About 1/3 of farmers have a net negative return to their investments in cocoa Youth want to get out (3 out of 125 interviewed) Greatest Threats to Cocoa Supply from Africa

3. From traditional to commercial production Required/anticipated changes: Greater market reliance Declining price of cocoa High productivity growth (4-6%) Declining number of cocoa producers Economies of scale Low transaction costs per unit sold Securing Competitive Cocoa Supply from Africa

4. So what is the fundamental research question? Two-fold: What is required to efficiently and effectively increase the income of cocoa farmers and cocoa communities? And how can this be done in an environmentally and socially responsible manner? STCP - IITA

5. Science-led development strategy: Need to prioritize research accordingly Need to ensure research is demand-driven Need to introduce innovations at different levels Productivity Marketing Institutional arrangements Policy environment STCP - IITA

6. innovations Introduction of innovations Agricultural transformation Traditional cocoa sector Producers below median output account for only 15% of output Low productivity growth (1-2%) Large numbers of producers (2 million) High transaction costs per unit sold Strategic Element 1. Productivity-enhancing innovations (intensification) Commercial cocoa sector Greater market reliance Declining price of cocoa. High productivity growth (4 - 6%) Declining numbers of producers Economies of scale Low transaction costs per unit sold Marginal cocoa land and labor previously employed in cocoa and now available for investments in other activities Strategic Element 3. Alternative income opportunities (diversification) Strategic Element 2. Marketing Efficiency enhancing innovations Growth in new agricultural and non agricultural enterprises Strategic Element 4. Improved policy & institutional environment

7. A new research culture is required: Research is required along the full stretch of the research and development continuum Research on intensification, diversification, marketing efficiency, policy/institutional environment – i.e. research across disciplines Need to develop, validate and scale up innovation packages that address: technical-institutional-financial elements Innovation platforms that bring together public and private partners, i.e. research priorities should not be determined by researchers alone Modus Operandi

8. Sustainable Tree Crops Development Alliance Supporting a 5-year 2 nd Phase Regional Action Plan in 5 West African countries (2007-2010): Ghana, Cameroon, Cote dIvoire, Nigeria, Liberia Alliance being expanded with government agencies, development groups and industry to increase the number of beneficiaries and enhance future development Radiates from the core alliance formed in 1998 between Global Cocoa & Chocolate Industry / Trade and USAID

9. Synergies of the Partnership Public Sector Country and regional understanding, deep knowledge of development and networks of expertise, financing capacity Private Sector Market discipline, integrated technologies, specific knowledge of industry, skills and experience to better design market focused activities Farmer Organizations Ensure that priority needs of the farmers are addressed, willing to contribute directly as benefits become evident

10. Challenges Disciplinary imbalance: capacities available for Elements 1 & 3 (Productivity and Diversification) Limited cross-disciplinary (and cross-sectorial) collaboration NARIs with limited operating funds Local private sector not very strong STCP-Partner NARS&NARIs

11. Opportunities Disciplinary training (national & regional) Linking researchers to development packages Linking research institutions to public-private platforms (National Networks) Research agenda driven by a clear development goal, with development partners; making available new types of resources to NARIs and NARS Learning by doing approach STCP-Partner NARS&NARIs

12. Of course, this is not a panacea against brain drain of African scientists! STCP-Partner NARS&NARIs

13. THANK YOU