Science-Based Development A regional perspective from STCP/IITA

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

2. Greatest Threats to Cocoa Supply from Africa  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)

3. Securing Competitive Cocoa Supply from Africa  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

4. STCP - IITA 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?

5. STCP - IITA 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

6. Strategic Element 3.Alternative income opportunities (diversification) Strategic Element 1.Productivity-enhancing innovations (intensification) Strategic Element 2.Marketing Efficiency enhancing innovations Introduction of innovations Agricultural transformation Marginal cocoa land and labor previously employed in cocoa and now available for investments in other activities 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 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 Strategic Element 4.Improved policy & institutional environment Growth in new agricultural and non agricultural enterprises

7. Modus Operandi 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

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

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. STCP-Partner NARS&NARIs  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

11. STCP-Partner NARS&NARIs  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

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

13. THANK YOU