1.
Greening the Supply Chain
in Ghana and Brazil:
can the private sector address
deforestation in the cocoa sector?
Marisa Camargo
University of Helsinki

2.
Deforestation and commodities
• Agriculture = 80% deforestation
• Zero-deforestation supply chain pledges
– Soy, palm oil, cattle, cocoa
• Cocoa
– Villain: driving DD 14–15m ha last 50 years
– Ally: agroforestry systems in the landscapes
– Victim: CC impacts on growing regions

3.
Suitability of cocoa production
(current and 2050)
Source: Läderach 2013

4.
Production
Thousand of tonnes
Source: ICCO 2015
2012/2013
Estimates
2013/2014
Forecasts
2014/2015
Côte d’Ivoire 1449 1746 1740
Ghana 835 897 696
Nigeria 238 248 235
Cameroon 225 211 220
Africa 2836 3197 2984
Ecuador 192 220 250
Brazil 185 228 215
America 622 708 729
Indonesia 410 375 370
Asia & Oceania 487 454 455
World Total 3945 4359 4168

5.
Ghana
• 2nd largest producer
• Farm size below 4 ha
• Direct and indirect employment to 2 million people
• Cocoa = 25%/a of total foreign exchange earnings
• Ghana Cocoa Board (COCOBOD) under Ministry of
Finance, implements government policies and
programmes
• Very regulated system to determine logistics and
price of cocoa production

6.
Ghana – supply chain
Majority is exported
Source: Sutton 2012
• Large number of smallholder
• 27 licensed buying companies
• Few processors (ADM, Cargill, Barry
Callebaut) and manufacturers (Nestlé)
• One exporter (Cocoa Marketing Company)

7.
Challenges
• Farmers average age 50 years
• Limited extension services
• Productivity is low (355 kg/ha)
• Loss of ~34% (diseases)
• Cocoa trees are aging
• Majority of cocoa is exported
• Majority of farmers not organized
– Difficult to provide TA and certify
• Most cocoa farmers not bankable

8.
Brazil
• Large global producer, 1970’s no-shade policy
• Pest (1980’s) destroyed plantations – areas burned;
producers left idle; no gov/mkt support; rural exodus
• Small growers but some large plantations
• Challenges: TA, loans, pest, urbanisation, labour costs
• >90% production processed and consumed in Brazil
• Good cases of successful
restoration of the cocoa
landscape, sharing space with
other commodities and improve
livelihoods – need to scale up!

9.
Cocoa: challenges and solutions
• Farmers aging and
scattered in
landscape
• Low-productivity,
lack of TA, little
access to credit,
aging trees
• Dependency in one
commodity
• Little research on
agro-
ecology/agroforestr
y
• Climate change
impacts on cocoa
growing area
Landscape approach
• Work in larger areas with various
stakeholders and activities
– education, research (species,
agroforestry (cash and food crops))
• Build synergies with other LUs and
actors (Ministries) - Zoning (REDD)
• Id and address degradation
• Increase resilience
• Aggregate several farmers
• Promote product diversification
• Develop Landscape certification
• Empower youth e.g. entrepreneurial
skills
$£€¥
Deforestation not the only challenge!

10.
Can the private sector address
‘deforestation’ in supply chains?

11.
Who?

12.
Global Journey
From cocoa to chocolate

13.
Who is the private sector?

14.
Benefits and responsibility
• Several private actors benefit from cocoa
production….
0%
10%
20%
30%
40%
50%
Farmers 3%
Local taxes and cocoa buyers 5%
Transport, storage, and trade 12%
Grinder/processors 7%
Manufacturing costs 20%
Marketing 10%
Retail/supermarket margins 43%
• They should also
share the costs
of producing
sustainable
commodities

15.
Chocolate value chain
Seed and
fertilizer
producers
Local
buyer/
Traders
Transporter Processing
Manufacturer
Retailer
Consumer
Investors
Packaging Co Recycling/Dis
posable
facilities
Suppliers
(sugar, dairy
machinery)
Farmer
Emissions
Emissions
Emissions
Deforestation not the only activity that
leads to emissions
In-setting

16.
Encouraging both supply and demand
of sustainable commodities
Supply Demand

17.
Policy mix encouraging demand and supply of
sustainable commodities
Education Voluntary
RegulatoryProperty
right, price-
based
Advertising, education
campaigns, shamming,
dissemination of results
(evidence)
Exclusive use rights,
easements, offset
arrangements, leasing
and licensing, charges,
levies, use fees, tax
instruments
Industry voluntary
commitments,
development assistance,
ESG criteria
Zoning, land use
restrictions, standards
and bans, product
labeling, Information
disclosure (GHG)
Governments

18.
Thank you!
marisa.camargo@helsinki.fi
This research was funded by UK aid from the UK
Government, however the views expressed do not
necessarily reflect the views of the UK Government