Integrated Assessment of Trade-Related Policies and Biodiversity in the Cocoa Sector

2. CAMEROON PROJECT • Integrated Assessment of Trade-Related Policies and Biological Diversity • in the Cocoa Sector • By • Jean Pierre MVONDO AWONO • Etienne ASSOUMOU EBO • Amadou WASSOUNI • Jean AMBASSA MVE Geneva, 1-3 July 2008

3. OBJECTIVE OF THE ASSESSMENT Toassess the environmental, social and economic impacts of the liberalization of cocoa commercialisation by the law N°2004/025 of December 30, 2004, on biodiversity in the cocoa producing provinces in Cameroon. The main preoccupation is to understand how this law and other related policies affect biodiversity.

4. FOCUS OF THE ASSESSMENT The focus is on the Cocoa sector and this is justified is justified by: - the geographical distribution in the country (400 000 ha distributed in 7 provinces out of 10) - its importance as first export crop, contributing up to 11.42% of the total export returns - the high number of people concerned (400 000 to 600 000 people (81% with no other profession) - the income generated (up to 50 to 75% of the total budget of 90% of households) in the 80’s. Any improvement in the cocoa sector would result in beneficial effects in the struggle against poverty

5. CONCEPTUAL FRAMEWORK The law N°2004/025 of December 30, 2004, liberalized the trade of cocoa in Cameroon. This law also encouraged the expansion of cocoa plantation, together with the revalorization of prices paid to producers, and the existence of assets favourable to such expansion (land, labour, etc.) Expanding cocoa farms is mainly done at the expense of natural forests or by settings on lands exploited for other plants. These result in modifications in land use and impacts on biodiversity. The fragmentation of the habitat by atomization of plantations in the landscape is one of the factors affecting biodiversity.

6. CONCEPTUAL FRAMEWORK (Flow chart)

7. CONCEPTUAL FRAMEWORK (Diagram) Law of December 30, 2004 Other aspects of well being: - Infrastructures - Education - Health - Social obligations, etc Local and national Economy Other policies influencing cocoa production Trade liberalisation Legislation of Commercial activities Non agricultural revenues Assets : - Land - Expertise - Labour - Commercial Circuits, etc Price to producers Commercial activities - Revenues from cocoa and other crops - Food security Production of cocoa and other crops Increase of cocoa production Other ecosystem functions and services Expansion/ redensification Changes in land use Ecosystem services Biodiversity within cocoa plantations Habitat fragmentation /atomisation of plantations in the landscape Biodiversity out of cocoa plantations

8. CONCEPTUAL FRAMEWORK (Diagram) Choice of inputs intensity Components and factors for analysis of increased cocoa production Improved varieties More farm labour Chemical and organic fertilizers Chemicals and organic pesticides Extent of cocoa farms State of environment Land in natural state Land slightly modified (Cocoa in agroforests) Land modified with low external inputs Land highly modified (conventional cocoa system) Change in size and isolation of areas of natural, slightly and highly modified land in the landscape

9. METHODOLOGY The point of departure for the analysis of impacts is at the onset of the liberalisation of the cocoa trade (80’s). The main economic, social and environmental indicators used to assess the impacts include: price paid to producers, yields, income from cocoa sales and sales of other crops, contribution to local and national economies, number and types of jobs, rate and amount of forest land conversion, agricultural and non agricultural biodiversity, expenses on pesticides. One of the scenarios examined was related to the implications of the production targets on forest land clearing and biodiversity (250 000 tons in 2015).

10. METHODOLOGY (cont.) The study was based on the ecosystem approach (sustainable use of natural resources) and participatory approach (implication of all stakeholders). Literature reviews Assessment methods used were : - analysis of the chain of causality - scenario development - trend analysis. Tools for data acquisition included : - Interviews - Talks - Group discussions - Field observations.

11. ASSESSMENT OF IMPACTS - Cocoa producers income increase - Job offer to the rise - General improvement of living conditions - Structuring and regrouping of producers - Threat of unbalance in space management - Conversion and reduction of forest land - Contamination of the environment - Carbon liberation - Increased cocoa genetic diversity - Increased agricultural biodiversity - Decreased non agricultural biodiversity - Fragmentation of habitat - Threat of species disappearance

12. ASSESSMENT OF IMPACTS (Scenorios) Initial situation Transition Final situation Primary forest (intensive production) Organic cocoa Production Primary forest Secondary forest Traditional Cocoa Producing agroforests Fallow or extensive production systems Conventional extensive Production systems

13. ASSESSMENT OF IMPACTS (scenarios) Scenarios 1 Primary forest (case of non conversion) - Much more biodiversity - More carbon sequestration - More services/forest products - No cocoa revenue To meet farmer’s objectives, intensification is needed on existing farms - Less biodiversity - Less carbon sequestration - Less services/forest products - Much more additional revenues from cocoa sales - Less additional non cocoa revenues

14. ASSESSMENT OF IMPACTS (scenarios) Scenarios 2 & 3 Organic cocoa - No existing norms - Non use of synthetic pesticides - Non use of chemical fertilisers Cocoa agro forests - More biodiversity - Relatively less carbon sequestration - Relatively more services/forest products - More additional revenues from cocoa sales - Additional revenues from agro- forest ecosystems

15. ASSESSMENT OF IMPACTS (scenarios) Scenarios 4 Conventional extensive production systems - Little biodiversity - Little carbon sequestration - Less services/forest products - Little revenues from cocoa sales - Little additional non cocoa revenues. Efforts needed for quantification Total biomass in primary forest 541 t/ha Total biomass in cocoa agroforests 304 t/ha Total biomass in cropped fields 85 t/ha (IRAD, 1997) Amount of carbon in primary forests 275 t/ha Amount of carbon in cocoa agroforests 179 t/ha (Nolte et al, 2001)

16. ASSESSMENT OF IMPACTS (recommendations) To consider including previous work: - Alternative to Slash and Burn project (IITA) - Carbon sequestration (ANAFOR) - Funding of cocoa plantations (REPARAC project) To use standard indicators of biodiversity (abundance, etc) To quantify rate of forest conversion and loss of biodiversity To Include plant and animal biodiversity, not forgetting birds To deepen aspects bound to the fragmentation of ecosystems To examine the possibility of getting satellite images at different dates to further study forest fragmentation To derive norms for biodiversity in cocoa agroforest To consider organic norms developed in Latin America

17. ASSESSMENT OF IMPACTS (recommendations) To work in a number limited of areas but that representative To put emphasis in conversion rather than old production areas To identify contrasting situations To include other actors during the information gathering process (hunters, lumbermen, medicine men, etc) To briefly discuss and exclude from the analysis: - environmental impacts of pollution - implantation of cocoa farms on fallows - intensive systems To exploit the methodological aspects developed by Lecuyer (2004, 2006) To prepare an improved version of the information collection guide.

18. POLICY RECOMMENDATIONS Capacity building policies - In the institutions of agricultural training (training for sustainable cocoa production) - Vocational training for technicians, agronomists and producers, to help ensuring the proper transitions Research policies - Understanding structural complexity and durability of systems - Rationalization of cultural practices in cocoa agro forests - Understanding the influence ecosystem fragmentation - Fight against diseases and pests (IPM for cocoa) Policies not bound to trade - Improvement of land tenure system - Allowing access to biodiversity in agroforests (law change) - Institutional backing for the emergence of effective associations of producers

19. POLICY RECOMMENDATIONS (cont.) Policies linked to trade - Measures to promote a sustainable cocoa economy (through cocoa produced agro forests) - Setting up a label or certification plan for of cocoa from agro forests ס Development of specific environmental norms ס List of authorized inputs (fertilizers and pesticides) ס Encourage importation or manufacture of relevant inputs - ס Exploring the possibilities of group labelling or certification ס encourage the transition from traditional agro forest to more sustainable ones - Tax breaks and bonuses ס Exemption of customs duties (achieved in part), ס Financial support (Awards, micro credit programs, etc) ס Suspension of the VAT for material and equipment ס Aid for the marketing.

20. NEXT STEPS July – August 2008 - Finalizing data collection and analysis (Centre and South) - Collection and data analysis in Southwest and Littoral - Report writing September – October 2008 - Report writing - Steering committee סto discuss and finalize the policy recommendations resulting from the assessment ס to present and discuss the project report. November – December 2008 - Inclusion of final remarks - National Workshop

21. ACHIEVEMENTS NOVEMBER 2006 TILL NOVEMBER 2007  - Setting up the steering committee - Two meetings of the steering committee - Workshop to launch the project - Workshop for capacity building - Data collection and analysis - Assessment study - Report writing (Assessment and technical reports) - Study report in progress

22. ACHIEVEMENTS (Next) November 2007 till June 2008 - Country team meeting (February 2008) - Exchanges with steering committee members - Data collection and analysis (March – June 2008) - Discussions with other researchers (IITA, IRAD, UDs) - National evaluation meeting (June 2008) - Workshop with CBD Expert (Dr Markus Lehman) (June 2008) - Report writing (Assessment and technical reports) - Study report in progress.

23. CHALLENGES The multiplicity of measures and policies with potential impacts on biodiversity. Sorting among these is challenging Participants not having the same understanding of the process. The process being new to most actors, it needs time and practice to be more effective. Functional and organizational difficulties related to people belonging to different organisations and scattered geographically. The preparation of a project to be presented to the CASCADe programme, a UNEP initiative in collaboration with partners (CIRAD, Winrock International, etc.) to promote carbon finance transactionsadapted to sub-Saharan context.