By strategic collaboration with local cocoa associations, agrodealers and agro-input suppliers, CNFA is improving production practices of and access to agricultural services by smallholder cocoa farmers in Ghana. The Commercial Strengthening of Smallholder Cocoa Production project will provide support to the private sector in piloting 20 integrated mini-warehouses where cocoa producers can access inputs, training and technical information on cocoa production technologies, certification programs, crop diversification, financing, and market their cocoa. Each mini-warehouse will serve approximately 300 cocoa producing households. More than 20,000 cocoa farming families in Ghana are expected to increase their incomes by 150% over three years through improved production techniques, increased access to inputs and finance, and crop diversification. Additionally, through the use of strategically designed matching grants, this project will leverage $4.3 million in private investment. This 3-year activity is supported through a $2.9 million grant from the Bill & Melinda Gates Foundation.

Association Development

To better gain convenient access to inputs, training, finance and collective marketing, farmers are supported in helping organize themselves into groups, clusters and associations. Producer groups like these make it easier to serve the maximum number of farmers. The goal is that each farmer would have easy access (within 6 kilometers) to products and services.

Development of Integrated Warehouses

CNFA will collaborate with agro-input suppliers and farmer associations to build 20 model pilot mini-warehouses to serve 40,000 cocoa producers. Each mini-warehouse will have two separate areas: a cocoa buying and certification area operated by local buying companies and a room for the producer groups to use for association meetings, trainings and other events. A small, independent agrodealer shop selling agro-inputs (seeds, fertilizers and crop protection chemicals) will also be located nearby. By offering inputs for many crops rather than just cocoa, this agrodealer will encourage crop diversification.

Technical Improvement and Certification

Farmers and agrodealers will receive technical training on cocoa production. In addition, demonstration plots and farmer field days, organized with input suppliers, will encourage crop diversification and improved cocoa production practices. Estimates show that by adopting these new practices, farmers can expect to triple yields and increase net incomes. After determining the cost-benefit tradeoffs of various certification schemes, the program will provide information and, at the request of farmers, training should they choose to secure internationally recognized certifications like Fair Trade, UTZ and Rainforest Alliance.

Stimulating Capital Investment

CNFA will conduct an extensive study of land tenure issues as they impact the cocoa industry, focusing on the impact on very small-scale producers, women, and sharecroppers. In addition, CNFA will pilot land titling training for land owners and will work with financial institutions to pilot new credit and crop insurance to mitigate farmer risk.

• 20% increase in profits
• 20,000 farmers with increased access to services, financing and inputs
• Increased revenues for 3,000 smallholder farmers as a result of improved production practices
• More than $11 million in credit extended to producers
• Over $700,000 in input supply credit leveraged through a guarantee facility

Related Links

Program Overview: Commercial Strengthening of Certified Cocoa Production in Ghana

Updated 6/2009