1.
Smallholder Rubber Plantation
Ghana
Workshop on Contract Farming
Phnom Penh – May 2012
Olivier GILARD
24 mai 2012

2.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 2
Price : variations
Prix du caoutchouc naturel (TSR 20, SICOM)
2008-2010
0
500
1000
1500
2000
2500
3000
3500
2007 Q1
2008
Q2
2008
Q3
2008
Q4
2008
Q1
2009
Q2
2009
Q3
2009
Q4
2009
Q1
2010
Q2
2010
Q3
2010
USDpartonne
Série1

3.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 3
Where does rubber comes from ?
Production de caouchouc naturel (1 000 t)
-
2 000
4 000
6 000
8 000
10 000
12 000
2007 2008 2009
Asie
Afrique
Amérique latine
Production de caoutchouc naturel en Amérique
latine et Afrique
(1000 t )
-
50
100
150
200
250
300
350
400
450
500
2007 2008 2009
Amérique latine
Afrique

4.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 4
Rubber history in Ghana
1930s: introduction of Rubber in Ghana
1957: 1st industrial plantation, State farm (3500 ha)
1967: GREL’s creation (State 45%, Firestone 55%)
1981: Firestone withdrawal => GREL became State entreprise
1988: plantation’s rehabilitation, new processing plant
1996: GREL’s privatisation (SIPH 60%, State 25%, Private 15%)
1995: MOFA’s launching of small holders plantation

5.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 5
AFD’s financed projects
From 1986 to 1990: plantation rehabilitation and new processing plant
From 1995: small holder plantation projects in 4 phases
Période Financement
AFD
Surface Nbre
planteurs
Production
additionnelle
Phase 1
CGH1018
1995-2000 1,2 M€ 1 200 ha 400 1 550 t/an
Phase 2
CGH1050
2000-2005 5,9 M€ 2 850 ha 500 3 250 t/an
Phase 3
CGH6008
2006-2012 8,6 M€ 7 000 ha 1 750 11 800 t/an
Phase 4
CGH1094
2010-2015 14 M€ 10 500 ha 3 500 17 850 t/an
TOTAL 1995-2015 29,7 M€ 21 550 ha 6 150 34 450 t/an

6.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 6
Financing tools
Period Amount
AFD
Financing
tool
Rate Duration Grace
period
Phase 1
CGH1018
1995-2000 1,2 M€ Sovereign 3% 22 ans 8 ans
Phase 2
CGH1050
2000-2005 5,9 M€ Sovereign 3% 22 ans 8 ans
Phase 3
CGH6008
2006-2012 8,6 M€ Sovereign 1% 30 ans 10 ans
Phase 4
CGH1094
2010-2015 14 M€ Non
Sovereign
EUR -70 pb 15 ans 7 ans

7.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 7
AFD
République du Ghana
Bank of Ghana
Local Bank
(ADB/NIB)
Small
holders
Technical
Operator
GREL
Farmer organisation
(ROAA)
Investment and
cash advance
financing
Billing
Loan
reimbursment
Rubber sale
Stumps, inputs
Technical assistance
Foreign currency loan
Local currency GHC
Local currency loan
Phases I, II & III
Grant

8.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 8
AFD
Local Bank
(ADB)
Small
holders
Technical
Operator
GREL
Farmers organisation
(ROAA)
Investment and
cash advance
financing
Billing
Reimbursment
of loan
Rubber sale
Stumps, inputs
Technical assistance
Prêt en devise (EURO)
EURO loan
Phase IV

9.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 9
Small holder sub-loan condition
Currency Duration Grace
period
Interest rate Loan recovery
modalities
Phase 1
CGH1018
GHC 20 ans 8 ans Rate for ADB
refinancing
+ 5% = 25,25%
Phase 2
CGH1050
GHC 20 ans 8 ans Rate for ADB
refinancing
seiling
20% + 4% = 24%
Phase 3
CGH6008
GHC 22 ans 8 ans 11,5% 25% of
production value
Phase 4
CGH1094
EURO 16 ans 7 ans AFD rate + 4% =
around 7%
30% then 35%
of production
value

10.
Workshop on Contract Farming – Phnom Penh
14 février 2011CEFEB-MOPP 10
Conclusions
Economics and institutionnal impacts
Small holder revenue increase : 840 €/ha/an (12th year, that’s 6th years of
production) (1.700 kg/an, 1,5 USD/kg)
Family work remuneration: 14 euros before loan recovery (x6 average daily
salary in rural areas), 20 euros at the end of loan recovery
Farmer organisation and Rubber interprofessional body
Model limits
New operators arriving with no regulations
Who is in charge of state responsibilities (research, roads, extension, etc.) ?
Duplication for other comodities ?

11.
Merci de votre attention