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ICCO Total Quality Project

ICCO Total Quality Project. Update for WCF Meeting Washington 13-14 October 2005 - Hilton Hotel Presentation by Phil Sigley of the Federation of Cocoa Commerce Limited Project partners – ICCO/BCCCA/CAOBISCO/FCC plus the Government of C ô te d’Ivoire and trade and industry members.

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ICCO Total Quality Project

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  1. ICCO Total Quality Project • Update for WCF Meeting • Washington 13-14 October 2005 - Hilton Hotel • Presentation by Phil Sigley of the Federation of Cocoa Commerce Limited • Project partners – ICCO/BCCCA/CAOBISCO/FCC plus the Government of Côte d’Ivoire and trade and industry members

  2. What is the ICCO TQP today • Sustainability project – adds vital component of commercial partnership to other quality and best agricultural practice features • A “Mainstream” alternative to “Niche” • Offers significant opportunity for scaling up • Offers risk management to cocoa market in face of growing food safety, ethical, environmental and security issues • How? – the traceability component

  3. Traceability • In the ICCO TQP this is not a complex unachievable goal • It is realistic system for checks and balances on whatever parameters may be set by the trading partners • The farmer groups and trade partners have implemented quite efficiently - it will need some hard work

  4. P P P • Don’t let PPP mean: • Pilot Projects in Perpetuity

  5. Evolution • ICCO TQP originally focused on sustainability of supply – liquor quality cocoa beans – i.e. a Quality Project • CAOBISCO/ICA concern at CAL/AFCC contracts – a parallel and related issue • ICCO project brought market together • Drew upon experiences of similar work in GAGNOA in mid 1980s re. farmer performance/incentives

  6. Quality – early work • Identify current practices – Survey, Report • Identify best known agricultural practices • Implement through training • Quality testing equipment and methods introduced to farmers groups • The above carried out in 2000 to 2003

  7. Early findings • Complex supply chain mitigated against achievement of project objectives • Need to shorten supply chain and strengthen farmers groups – common view shared with other projects • Other commercial/social issues emerging from survey

  8. Project development • Survey data indicated current trading partners of farmer groups selected for quality training • Partners approached to join project • Basis of farmer group, trade partner, industry partner established with support from Government of Cote d’Ivoire/BCC

  9. Key components of partnership • Well established farmer group benefited significantly from project cocoa production • Difficulties with those groups having little formal structure prior to project but progress made • Social component of project participation utilised for support to farmer community – agreement reached between parties – add to economic fabric of villages

  10. So what is involved • Flexible additional payment structure • Decide how much to farmer, how much to strengthen capacity of farmers group and how much to social project • Factor in savings in new procedures – i.e.properly prepared cocoa, international bags applied and sealed at farmer group level = no need for further intermediate processing, consistency = yield benefits to factory

  11. Outcomes • Quality results good • High costs for some trade partners mean that we need to do more work on definition of sustainable in this context measured against aspirations for the benefits to be delivered through the supply chain • Traceability successful • Social component delivered/ under discussion

  12. Where next • Volumes to date have been small • Currently assessing demand from partners • FCC will send details to its members for possible attraction of greater participation • BCC has nominated list of 24 farmer groups that may be capable of participating effectively • Child labour sensitisation module may be added – Madame Aquah liaising between CDI Government and ICCO

  13. The Challenge • If the trade and industry wants to achieve sustainability in the cocoa market and to allow farmer groups to truly benefit from FFS then we must address the supply chain • We have long been criticised by those promoting fair trade without considering the enormous difficulties in bringing large quantities to market • The ICCO Total Quality Project offers an insight into how this might be achieved if we collectively set and abide by sound standards to meet the challenges of food safety, ethics and quality

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