Presentation is loading. Please wait.

Presentation is loading. Please wait.

“A greater focus on agriculture will help boost overall economic growth an can offer multiple pathways out of poverty” Robbert Zoelick, World Bank President.

Similar presentations


Presentation on theme: "“A greater focus on agriculture will help boost overall economic growth an can offer multiple pathways out of poverty” Robbert Zoelick, World Bank President."— Presentation transcript:

1 “A greater focus on agriculture will help boost overall economic growth an can offer multiple pathways out of poverty” Robbert Zoelick, World Bank President in FT 20.10.2007

2 2007 Allanblackia Workshop Yaounde, Cameroon 22 – 28 October 2007

3 Introduction Who are you ? For what organisation do you work and in which role? What do you expect to take home from this meeting ?

4 Project Novella the development of an income providing supply chain in a framework of environmental and social benefits Harrie Hendrickx September 20 th 2007

5

6 Develop profitable, equitable, efficient and environmentally sound African driven Allanblackia enterprises Commercial agenda Development agenda Environmental agenda Ownership

7 What is OK, What can go better ? Personal relationships Exchange of experiences Regular meetings Information sharing Targets quantified Willingness to solve problems together Collaboration and communication with Unilever Bonds between organisations Co-ordination (funds) Trust Financial dependence Accountability Financial dependence Bilateral contacts Fragmented partnership

8 How can we support national teams best ? Issues – challenges – way forward Accountability Learning from each other Communication Public relations Resource mobilisation Information documentation and sharing Independent advisory group Organisational framework

9 Action points: Finalize common framework Decide on coordination / secretariat Institutional backing Key issues to be prepared Operational guidelines Continue with RBM on Friday - Saturday

10 Back-up sourcing model for Novella

11 Model and status of current program Volume estimates for AB oil from existing trees: Countries, like Liberia and Cameroon, may add to this. –No issues with fat composition or contaminants –All productions up till now were within spec. –Use of AB expected in Q2 2008

12 Grow volume to grow rural income ! In 2016: 30,000,000 US$ Every year

13 Perspective of Novella ll Growing 1 tree requires an investment of $2 (Incl. farmer support, education, ….) Trees (cuttings) yield 5-6 litres of oil per year from Y5 onwards, at a value of $3 An annual income of $300 requires 120 trees, covering circa 0.5 ha An annual production of 2,000,000 tonnes would equal 3% of the total value of the world palm oil crop. Demand for such a quantity exists now already. Who should own the trees?

14 5-50 trees per ha on 5 ha 30 fruit per tree 1 st harvest 4 years Full harvest 7 years US$ 2.5 per tree per year Vision of small-holder production

15 Required for this vision: 3 – 4 countries adopting AB Local supply chain working and capable to expand Local cultivation infrastructure available Variety of organisations and methods used to implement Willingness to continue another 5 – 7 years Resources of 1 – 2 million / year / country

16 Variety of organisations and methods used to implement Subsistence farmers adopt AB agroforestry Collaboration with existing institutions –Cocoa, rubber, spices, palm oil, timber –Re-forestation, Landscape restoration, mines, CO 2 programs Commercial enterprises –Farms –Plantations ?

17 Environmental ResponsibilityDevelopmental Responsibility New Plantation Model: Management Company Land- owner Work- force Bank Buyer IUCN – ICRAF SNV – Oxfam – GTZ – UNDP – UNEP – Faida – ICA – INADES - …….. Paramount chiefs – chiefs - village leadership – farmers – Rabobank – Triodos bank – Unilever – AAK – Form Int. – Cargill DfID – DGIS – USAID – B&M Gates Foundation

18 And after 25 years: The bank has all the money back The land can be given back to the owners Farmers can get a plot of land (lease / own) –Being trained on AB farming –Being trained on biodiversity benefiting livelihoods –With an AB market established –With a good income provided by the trees The management company can explore new options

19 ACKNOWLEDGEMENTS This report would not have been completed without the assistance of several personalities: My sincere thanks go to the World Conservation Union (IUCN) for initiating the research and the Swiss State Secretariat for Economic Affairs (SECO) for providing funding. Great thanks to all community level respondents and representatives of stakeholder organizations for information given. Special thank to Technoserve Inc. Ghana for contributing to field data collection and reviewing of draft reports. […………….] Dr.(Mrs.) Irene S. Egyir September, 2007

20 EXECUTIVE SUMMARY Allanblackia spp is a tree species widely distributed in the forest regions of Sub Saharan Africa. The supply chain for AB has been established and is functional. Recent studies have recorded that trends in a number of collectors, quantity collected and price per unit have all shown positive growth. This study sought to describe the price setting process by examining income generating activities, the opportunity cost of labour for the target population at the time of year when Allanblackia is harvested., estimate the farm-level investment and operating cost, cash flow and net returns over a period of 20 [..] years, compare the net returns to Allanblackia ($/ha, $/person, internal rate of return) with alternative tree crops including cocoa and cola […..] A three step approach was employed in developing the methodology for the study. First, the conceptual framework was described; here the thinking is based on basic theories of economics and expert opinion. [….] Mainly primary survey data from a randomly selected sample of 103 respondents from three communities (Pataho, Mmerewa and Kroboase) in the Western Region of Ghana was employed.

21 US$ 1000/ (250 days*8 hours*2 persons) = US$ 0.25 /h

22

23 The findings of the study show that: Allanblackia collectors are cocoa and food crop farmers who have well established calendar of input acquisition, production and marketing activities. Income generated from these activities is key; yet they seek other sources of income during their leisure. Trees have a role to play. […] However, they are not easily accessible to all households for income generation. Some are in seasoning when there is less to do on cocoa and food crop farms. Others peak with the cocoa crop. However, where the return on labour is perceived to be high, leisure hours are spent on processing them for sale. They require little physical and financial capital investment. Yet, collectors believe that the time and physical effort invested need to be rewarded adequately for interest to be sustained.

24 Allanblackia is a collection activity carried out during cocoa lean season and its opportunity cost is nil in financial terms. Other collection activities that yield a higher value per hour; ¢4,000/hr for AB to ¢6,600 - ¢14,300/hr for cola, “Atooto” and “Abesebuo”. Although there are virtually no costs incurred in its collection and processing before sale, the laborious nature of the processes and the perceived low price per unit makes its sustainability questionable. AB domestication would be embraced by majority of the population provided […..] permanent produce buyers in community and some fringe benefits are given.

25 At a discount rate of 19 percent and a life span of 20 years, the NPV was positive for all eight scenarios of subsidized and non-subsidised Allanblackia plantation. Indeed apart from the first five years of establishment, the net cash flows for each year were positive. This is achievable if each year commands a minimum of 10 percent producer price increase.

26 We note that the current price may not be incentive enough because large quantities of nuts are not collected and processed; the mean revenue (¢35,000.00) per annum is not attractive. The perceived high price (¢9,200.00) per kilo of cocoa induces farmers to maintain farms (using hired labour) and work extra hours ‘when the season is here’; in the same way a higher than ¢1500/kg would induce AB collector to plan for and invest time and labour (including hired).

27

28

29 ICRAF Cameroon Nursery

30 USP of Allanblackia Allanblackia improves productivity and sustainability of farms Allanblackia maintains/increases off-reserve biodiversity, creates possibilities for effective corridors Allanblackia mitigates effects of global warming (contributes directly to carbon dioxide reduction, reduces impact of droughts, higher temperatures and soil depletion in cocoa farms and other production systems) Allanblackia can give Africa global leadership in a valuable crop Good potential for creating a value chain in least developed countries in the region (Liberia, DRC)

31 Next steps Strengthen the partnership Prepare / realise the upscaling of the initiative (total costs at $ 30 – 35 million) –Continued research at ICRAF –Professionalise the Novella management structure –Set-up / grow multiplication chain –Test the introduction-models developed at farm- and community (reforestation, community based land management programmes) level –Bring planting level to 1,000,000 trees/year –Embed activities in national structures (government, NGO, private sector) with national ownership


Download ppt "“A greater focus on agriculture will help boost overall economic growth an can offer multiple pathways out of poverty” Robbert Zoelick, World Bank President."

Similar presentations


Ads by Google