Commodity chain : COCOA - SÃO TOMÉ AND PRINCIPE

Background history of the project

At the beginning of the millennium, IFAD asked Kaoka, a French company producing organic cocoa, to carry out a short survey on the cocoa channel in São Tomé. The study showed that traditional production methods could be adapted to organic production. At the end of 2000, IFAD launched a pilot project over three years which involved 500 peasants from 11 communities. Kaoka accepted to supervise the project and to buy the total production of cocoa from planters having received an organic certification.

Local Partners

27 producer organizations grouped around CECAB (Cooperative for the Export of Organic Cocoa)

Stakes

Cocoa is quoted on the international stock markets, mainly London and New York, and the quotation is based on supply and demand. Fair Trade allows to differentiate a production and to receive a good price for cocoa and for its by-products. However, the guarantee of a Minimum Price and the stabilization of prices does not always allow to guarantee a minimum revenue to the producers. For this type of channel with an international dimension, long term contractual agreements between buyers and organizations of producers is essential.

Context

Both of these volcanic islands are located on the Equator, offshore from Libreville (Gabon), covering an area of 370 square miles.

During the colonial era, cocoa plantations belonged to the big Portuguese companies (plantations covering 12,000 to 24,000 acres) and the indigenous population worked as agricultural labourers.

There were no peasants as such, contrary to the profile of African agriculture where agriculture is often organized around the village community. Following the Portuguese Revolution of 1976, Portugal granted independence to its colonies, including SAO TOME AND PRINCIPE.

Large plantations where often dismantled and land was distributed to the population.

The growing of cocoa is today organized around small producers with 5 to 10 acres of land.

Within this frame, KAOKA committed itself to a cooperation with the International Fund for Agricultural Development (IFAD) to assist in the creation of groups of producers , to create the infrastructures needed for the post-processing of cocoa and to organize the channel around an export coop, partner of KAOKA.

Program Description

Local NGO's and Kaoka supplied advice and technical assistance on the regulations related to organic cocoa, as well as on production techniques. They helped on research activities, on the monitoring of quality for export, and supplied the plants. The project has helped the representatives of community organizations to create the CECAB (Cooperative for the Export of Organic Cocoa), which is in charge of commercial activities.

"In Sao Tomé and Principe, organic production and fair trade give a new impetus to the cocoa channel". Read the IFAD report dated September 2010."

Companies being engaged in this commodity chain

KAOKA, CEMOI, NATURE ET ALIMENTS, NUTRITION& NATURE, FRIGOULETTE.