Study shows initiatives in Cameroon and Côte d’Ivoire boost trade in cotton and cocoa industry 

The Food and Agriculture Organization of the United Nations (FAO), the International Food Policy Research Institute (IFPRI) and the CGIAR Research Program on Policies, Institutions, and Markets (PIM) today virtually launched the agriculture human capital investment case study carried out in Cameroon and Côte d’Ivoire by the Agribusiness Market Ecosystem Alliance (AMEA).

This case was part of a global study started in early 2020 to provide governments, international financing institutions, the private sector and other partners with the evidence and analysis needed to make more and better investments in agriculture human capital.  

“Today more than ever, farmers face profound changes – from climate change, labour shortages and global pandemics such as COVID-19, to an explosive rise in digital technologies, shifting diets and rigorous global and national food safety standards,” said John Preissing, the Deputy Director – FAO Investment Centre.

“Agricultural producers need the capacity to analyse, innovate and respond, to keep up with this rapidly changing environment to optimise their efforts. At the same time, they must manage their own businesses,” he added.

About the cotton and cocoa industry

As of 2018, Côte d’Ivoire’s cocoa exports accounted for 40 percent of global exports. This cash crop is mostly grown in the southern forested areas of Côte d’Ivoire by small-scale farmers owning around two to five hectares of land. This translates to about one million producers in Côte d’Ivoire and the sector further supports five million people - which is 20 percent of the population.

The cotton sector in Côte d’Ivoire also accounts for two percent of world exports. Grown in drier, more thinly populated and less developed northern regions, cotton is an important source of direct income for an estimated 180,000 farmers while supporting an additional 2.5 million people.

In Cameroon, cocoa exports account for three percent of global exports. There are an estimated 600,000 cocoa farmers, mostly with farms of two to ten hectares.

This case study explored three private sector-led initiatives in both countries that focused on capacity development of farmer organizations. The approach focused on agribusiness capacities for both the organization and its farmer members – capacities that can catalyse mmarket linkages, private sector partnership investments, and wider rural development. 

These farmer organizations’ business model was to aggregate cocoa or cotton from small producers and sell to major export companies.

“The farmer organizations repeatedly commented on the new recruitment of appropriately qualified staff (particularly accountants), establishment of organizational premises, improved record-keeping, regular meetings, greater transparency (sharing information with members), and elections,” said the lead author for the study, Ann Gordon.

“All of these are aspects of internal and financial management. There were also reports of small farmer organizations merging with others so that they were more viable. Changes of this nature (some key informants referred to this as a transformation) give members more confidence in those organizations and promote stronger participation and inclusion,” she added.

Importance of investing in agriculture human capital

Agriculture plays an important role in feeding these countries and other countries Cameroon and Côte d’Ivoire export to, as well as generate income for those working in the food value chain.

Investing in farmers – or agriculture human capital – is therefore crucial to addressing challenges in our agrifood systems. There is growing evidence that when you invest in farmers, their capacity and motivation to produce food profitably and sustainably increases.

The global study showed that investments in developing the human capital of smallholder producers resulted in new technical, business capacities and empowered farmers with various useful skills. This led to increased incomes, yields and the inclusion of marginalised groups.

Note to editors:

Human capital, as an economic term, refers to assets that improve individual productivity. These include skills development, training and education, as well as public health and migration. They also include more abstract aspects such as self-esteem, empowerment, creativity, increased awareness and mindsets.

In addition to this case on professionalising farmer organizations from Cameroon and Côte d’Ivoire, the study also included cases from Kenya, Rwanda, Chile, India, Indonesia, Peru, and the United States of America, along with the global report. 

For more information

Contact

Lydia Limbe,

Communication Expert – FAO Investment Centre

Email: [email protected]

Twitter: @FAOInvest