“A greater focus on agriculture will help boost overall economic

growth an can offer multiple pathways out of poverty”

Robbert Zoelick, World Bank President in FT 20.10.2007

2007 Allanblackia WorkshopYaounde, Cameroon

22 – 28 October 2007

Introduction

• Who are you ?

• For what organisation do you work and in which role?

• What do you expect to take home from this meeting ?

Project Novella

the development of an income providing supply chain

in a framework of

environmental and social benefits

Harrie Hendrickx September 20th 2007

Name of participant

Country

Organization

1 Annette van Andel Netherlands SNV

2 Caroline Redup Switzerland IUCN

3 Cyril Kattah Ghana NDGL

4 Gemma Boetekees Netherlands ICCO

5 Harrie Hendrickx Netherlands UNILEVER

6 Jeroen Ooestenenk Netherlands UNILEVER

7 Jesper Korning Denmark AAK

8 Lawrence Attipoe Ghana SNV

9 Mads J. Feer Denmark AAK

10 Peter de Haan Ghana SNV

11 Ramni Jamnadass Kenya ICRAF

12 Samuel Kofi Nyame Ghana IUCN

13 Simon A. Christiansen Denmark AAK

14 Stephen Kelleher Switzerland IUCN

15 Tony Simons Kenya ICRAF

16 Virpi Stucki Switzerland IUCN

17 Sizakele Noko Switzerland IUCN

Develop profitable, equitable, efficient and environmentally sound African driven

Allanblackia enterprises

• Commercial agenda

• Development agenda

• Environmental agenda

• Ownership

What is OK, What can go better ?

• Personal relationships• Exchange of experiences• Regular meetings• Information sharing• Targets quantified• Willingness to solve

problems together• Collaboration and

communication with Unilever

• Bonds between organisations

• Co-ordination (funds)• Trust• Financial dependence• Accountability• Financial dependence• Bilateral contacts• Fragmented partnership

How can we support national teams best ?Issues – challenges – way forward

• Accountability• Learning from each other• Communication• Public relations• Resource mobilisation• Information documentation and sharing• Independent advisory group• Organisational framework

Action points:

• Finalize common framework

• Decide on coordination / secretariat

• Institutional backing

• Key issues to be prepared

• Operational guidelines

• Continue with RBM on Friday - Saturday

Back-up sourcing model for Novella

Model and status of current program

• Volume estimates for AB oil from existing trees:

• • Countries, like Liberia and Cameroon, may add to this.– No issues with fat composition or contaminants– All productions up till now were within spec.– Use of AB expected in Q2 2008

2006 2007 2008 2009

Tanzania 120 100 170 200Ghana 60 65 110 125Nigeria 0 50 270 350

Total 180 215 550 675

Grow volume to grow rural income !

• In 2016:• 30,000,000

US$• Every year

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

2005 2010 2015

Ru

ral i

nc

om

e f

rom

AB

oil

in U

S$ With planting AB trees

Without planting trees

Perspective of Novella ll

• Growing 1 tree requires an investment of $2 (Incl. farmer support, education, ….)

• Trees (cuttings) yield 5-6 litres of oil per year from Y5 onwards, at a value of $3

• An annual income of $300 requires 120 trees, covering circa 0.5 ha

• An annual production of 2,000,000 tonnes would equal 3% of the total value of the world palm oil crop. Demand for such a quantity exists now already.

• Who should own the trees?

5-50 trees per ha on 5 ha30 fruit per tree1st harvest 4 yearsFull harvest 7 yearsUS$ 2.5 per tree per year

Vision of small-holder production

Required for this vision:

• 3 – 4 countries adopting AB• Local supply chain working and capable to

expand• Local cultivation infrastructure available• Variety of organisations and methods used to

implement• Willingness to continue another 5 – 7 years• Resources of 1 – 2 million / year / country

Variety of organisations and methods used to implement

• Subsistence farmers adopt AB agroforestry

• Collaboration with existing institutions– Cocoa, rubber, spices, palm oil, timber– Re-forestation, Landscape restoration, mines,

CO2 programs

• Commercial enterprises– Farms– Plantations ?

Environmental Responsibility

Developmental Responsibility

New Plantation Model:

Management Company

Land- owner

Work- force

BankBuyer IUCN – ICRAF SNV – Oxfam

– GTZ – UNDP – UNEP – Faida – ICA – INADES - ……..

Paramount chiefs – chiefs - village leadership – farmers – Rabobank – Triodos bank – Unilever – AAK – Form Int. – Cargill

DfID – DGIS – USAID – B&M Gates Foundation

And after 25 years:

• The bank has all the money back• The land can be given back to the owners• Farmers can get a plot of land (lease / own)

– Being trained on AB farming– Being trained on biodiversity benefiting livelihoods– With an AB market established– With a good income provided by the trees

• The management company can explore new options

ACKNOWLEDGEMENTS

This report would not have been completed without the assistance of several personalities: My sincere thanks go to the World Conservation Union (IUCN) for initiating the research and the Swiss State Secretariat for Economic Affairs (SECO) for providing funding. Great thanks to all community level respondents and representatives of stakeholder organizations for information given. Special thank to Technoserve Inc. Ghana for contributing to field data collection and reviewing of draft reports. […………….]

Dr.(Mrs.) Irene S. EgyirSeptember, 2007

EXECUTIVE SUMMARYAllanblackia spp is a tree species widely distributed in the forest

regions of Sub Saharan Africa. The supply chain for AB has been established and is functional. Recent studies have recorded that trends in a number of collectors, quantity collected and price per unit have all shown positive growth. This study sought to describe the price setting process by examining income generating activities, the opportunity cost of labour for the target population at the time of year when Allanblackia is harvested., estimate the farm-level investment and operating cost, cash flow and net returns over a period of 20 [..] years, compare the net returns to Allanblackia ($/ha, $/person, internal rate of return) with alternative tree crops including cocoa and cola […..] A three step approach was employed in developing the methodology for the study. First, the conceptual framework was described; here the thinking is based on basic theories of economics and expert opinion. [….] Mainly primary survey data from a randomly selected sample of 103 respondents from three communities (Pataho, Mmerewa and Kroboase) in the Western Region of Ghana was employed.

Table 3.4: Income of respondents in 2006 Elements

Amount (¢’000)

Mean 10,520.00 Maximum 53,175.00 Minimum 0.00 S. Deviation 122.95 US$ 1000/ (250 days*8 hours*2 persons) = US$ 0.25 /h

Table 3.5: Land use for cropping Elements Mean Minimum Maximum Standard

deviation Amount available 10 0.5 50 8.8 Amount used 8 0.5 40 6.7 Cocoa1 Food crops Oil palm Rubber

8 1 2 2

1 Mode estimation from Focused group discussion

The findings of the study show that: • Allanblackia collectors are cocoa and food crop

farmers who have well established calendar of input acquisition, production and marketing activities. Income generated from these activities is key; yet they seek other sources of income during their leisure.

• Trees have a role to play. […] However, they are not easily accessible to all households for income generation. Some are in seasoning when there is less to do on cocoa and food crop farms. Others peak with the cocoa crop. However, where the return on labour is perceived to be high, leisure hours are spent on processing them for sale. They require little physical and financial capital investment. Yet, collectors believe that the time and physical effort invested need to be rewarded adequately for interest to be sustained.

• Allanblackia is a collection activity carried out during cocoa lean season and its opportunity cost is nil in financial terms. Other collection activities that yield a higher value per hour; ¢4,000/hr for AB to ¢6,600 - ¢14,300/hr for cola, “Atooto” and “Abesebuo”.

• Although there are virtually no costs incurred in its collection and processing before sale, the laborious nature of the processes and the perceived low price per unit makes its sustainability questionable.

• AB domestication would be embraced by majority of the population provided […..] permanent produce buyers in community and some fringe benefits are given.

• At a discount rate of 19 percent and a life span of 20 years, the NPV was positive for all eight scenarios of subsidized and non-subsidised Allanblackia plantation. Indeed apart from the first five years of establishment, the net cash flows for each year were positive. This is achievable if each year commands a minimum of 10 percent producer price increase.

• We note that the current price may not be incentive enough because large quantities of nuts are not collected and processed; the mean revenue (¢35,000.00) per annum is not attractive. The perceived high price (¢9,200.00) per kilo of cocoa induces farmers to maintain farms (using hired labour) and work extra hours ‘when the season is here’; in the same way a higher than ¢1500/kg would induce AB collector to plan for and invest time and labour (including hired).

Table 3.8: Total income from NTFP in survey area in 2006 (‘000) Source Amount Rank Allanblackia Abesebuo Atooto Wisa Cola Yediaba Whintia Mushroom Snail

1,589.50 12,940.00 29,360.00

350.00 400.00

1,240.00 60.00 0.00 0.00

3 2 1 6 5 4 7

Supply Chain for Allanblackia

Farmer / Collector

Focal person

Transport firm

Crusher

Shipping

Refining

Spreads production

Marketing / sales

NGO-Supported

Tree nursery ICRAF-support

authorities

authorities

Unilever managed

ICRAF Cameroon Nursery

USP of Allanblackia

• Allanblackia improves productivity and sustainability of farms

• Allanblackia maintains/increases off-reserve biodiversity, creates possibilities for effective corridors

• Allanblackia mitigates effects of global warming (contributes directly to carbon dioxide reduction, reduces impact of droughts, higher temperatures and soil depletion in cocoa farms and other production systems)

• Allanblackia can give Africa global leadership in a valuable crop

• Good potential for creating a value chain in least developed countries in the region (Liberia, DRC)

Next steps

• Strengthen the partnership• Prepare / realise the upscaling of the initiative

(total costs at $ 30 – 35 million)– Continued research at ICRAF– Professionalise the Novella management structure– Set-up / grow multiplication chain– Test the introduction-models developed at farm- and

community (reforestation, community based land management programmes) level

– Bring planting level to 1,000,000 trees/year– Embed activities in national structures (government,

NGO, private sector) with national ownership