Mainstreaming Climate-Smart Cocoa in Ghana

Presentation outline

• Climate change and climate variability for cocoa in West Africa

• Climate Change, Agriculture and Food Security (CCAFS) program

• Project goals• Project consortium members• How we propose to work • Initial results of climate change exposure mapping• Final thoughts

Climate change and climate variability for cocoa in West Africa

Mainstreaming Climate-Smart Cocoa

Climate change and climate variability for cocoa in West Africa

• Cocoa increasingly vulnerable to climate change and climate variability.

• In the cocoa-growing regions yearly and monthly minimum and maximum temperatures will increase by up to 2.0°C by 2050.

• Yearly and monthly precipitation changes trivial.• Result: suitability for current cocoa-growing areas

will decrease seriously by 2050.• Climate change will increase pressure on forest

areas.

2050 suitability changes for cocoa regions

• Suitability losses in the West

• Some gains towards Lake Volta.

Läderach et al. (2013) Predicting the future climatic suitability for cocoa farming of the world’s leading producer countries, Ghana and Côte d’Ivoire” Climatic Change.

2050 suitability changes for cocoa regions

• Ghana: Losses in the North, Gains in central areas.

• West-A.: Maximum dry season temperatures seen to be problematic.

• West-A.: Areas at the margins to Savanna are most vulnerable.

Schroth et al.,“Vulnerability to climate change of cocoa in West Africa: patterns, opportunities and limits to adaptation” Agriculture, Ecosystems and Environment (Submitted).

Climate Change, Agriculture and Food Security (CCAFS) program

Mainstreaming Climate-Smart Cocoa

CGIAR

• A global partnership that unites organizations engaged in research for a food secure future

• 15 research centers engaged in 15 CGIAR Research Programs

Overall objectives:• Identify and develop pro-

poor adaptation and mitigation practices, technologies and policies for agriculture and food systems.

• Support the inclusion of agricultural issues in climate change policies, and of climate issues in agricultural policies, at all levels.

The Climate Change, Agriculture and Food Security (CCAFS) program

Four flagship projects

Incremental adaptation

Transformational adaptation

Food security

MitigationAdaptation

Climate variability

Climate change

Synergies and trade-

offs

Whole food systems

Problems addressed by CCAFS

Project goals

Mainstreaming Climate-Smart Cocoa

Project goals (1)

What we know• The impacts of climate change are not uniform across the

cocoa belt of West Africa. • The differentiated nature of the risks means differentiated

strategies for managing adaptation. • There is no one-size fits all strategy.What we will do• Use a transect approach to account for spatial and temporal

differences• Select sites with high, medium and low climate change impacts

and develop appropriate strategies -- in collaboration with others -- for each

• Assess adequate adaptation strategies with producers and value chain actors (right varieties, diversification, shading, site specific recommendations, new generation of farmers, smart replanting strategies, etc.)

Project goals (2)

What we will do (continued)• Test ways to drive CSA adoption at scale with appropriate

support and incentives:a) Integration of site specific CSA practices into extension services

tied to voluntary certification schemes; and, Ib) Integration of site specific CSA practices into producer

organization financing models. • Engage local actors in the above process through multi-

stakeholder platforms (such as this meeting) in an on-going way from now until (at least) 2019.

• We do not want to reinvent the wheel but rather support / build on existing activities and hope you will find what we can provide useful to achieving your business, research and policy goals.

Project consortium members

Mainstreaming Climate-Smart Cocoa

International Center for Tropical Agriculture, CIAT

• 50 years of applied research for improved livelihoods and environmental sustainability in the global tropics.

• 900 staff active in Africa, Latin America and South East Asia.

• Annual budget of US 130m.• Lead center for the global

Climate Change, Agriculture and Food Security Program of the CGIAR.

International Center for Tropical Agriculture, CIAT

Role in this project• Mapping risk of climate

change for cocoa in Ghana• Economic analysis of cost

and benefits of adaptation strategies

• How to scale CSA practices in cocoa systems

• Overall project and consortium management, reporting and learning.

International Institute of Tropical Agriculture

One of the world's leading research institutes working with partners in Africa and beyond to reduce producer and consumer risks, enhance crop quality and productivity, improve livelihoods and generate wealth from agriculture.

International Institute of Tropical AgricultureProject role

• Coordination in Ghana together with RA• Situational analysis• Stakeholder engagement • Social learning• Identify strategic learning sites along climate gradients• Develop relevant adaptation practices for cocoa • Climate Smart Agriculture planning that fosters gradual

change/transition in the identified high impact zones• Match CSA to value chain actors’ needs according to the

agreed identified adaptation zones

International Institute of Tropical AgricultureCSA pilot in Ghana

Three CSA research pilot sites along climate gradient:

Focus:• Situational analysis• Agricultural information systems• Farm modernisation and sustainable intensification• Farm rejuvenation, diversification and rehabilitation• Productive cocoa systems and cocoa farm investment scenarios

in the face of climate change and climate variability• Biological control• Youth in cocoa farming and cocoa service provision

21

Rainforest Alliance

We work to conserve biodiversity and ensure sustainable livelihoods by transforming…

Consumer behaviorBusiness practicesLand use practices

Rainforest Alliance Project role

• Identify site & cocoa-based farming system specific CSA practices by exposure and investment gradient

• Identify site and crop specific CSA practices that are most promising for inclusion into certification and training

• Incorporation into Rainforest Alliance training materials • Replicate this process with other voluntary certification

bodies• Influence uptake of methods and approaches more

broadly with other relevant stakeholders

Root CapitalAn Impact Investment Pioneer

Seeks a financial return AND socio-economic and environmental benefits for clients and their membersProvides a range of credit and financial advisory services to rural enterprises in the “missing middle” 15 years old, over $120M under management,$850M lent cumulatively; 97% repayment rate; 100% return of funds to investorsLends along supply chains where contracts serve as the primary form of collateral Major focus on measuring impacts; standard metrics and deeper analysis for a sub-sample of clients

Root CapitalProject role

Loan Details Range

Loan Size $50K-$3M

Interest Rate 9-14%

Short-Term (6-12 months)Trade Credit: Purchased from producersPre-Harvest: Support producer production capacity, including input use

Longer-Term (1-5 years)Working Capital: General operating capitalCapital Expenditure: Purchase equipment, property, vehiclesFarm Renovation: improve plant stock, increase yield, productivity and quality

Mainstreaming CSA into agricultural finance

• Root Capital will assess how to adapt its financial products to facilitate adoption of CSA in the cocoa sector

• Positive experience with coffee in Latin America

• Multiple challenges to date working in the cocoa sector in Ghana, so these will need to be addressed

A Global Learning Platform toMainstream Sustainability

Sustainable Food LabThe Business Case for Climate Smart Agriculture

• The Food Lab’s role is to engage global and national companies to understand how their strategic sourcing priorities are effected by climate risk.

• How might better analytics and tailored adaptation guidelines strengthen their value chains?

• How might companies integrate adaptation into their carbon reduction goals?

• Where is the win win and synergy with government efforts at the national level?

How we propose to work

Mainstreaming Climate-Smart Cocoa

Proposed impact pathway

Proposed impact pathway - roles

Timeline

2015 20192016 2017

Initial results of climate change exposure mapping

Mainstreaming Climate-Smart Cocoa

Current distribution cocoa ecological zones

Future distribution of cocoa ecological zones

Direction of change

Distribution of impact

Final thougths

Mainstreaming Climate-Smart Cocoa

Final thoughts

The project expects to contribute to: Clear knowledge of what types of CSA practices to promote

where, for whom and with what return on investment Knowledge of under what conditions extension and PO

investments function as incentives for CSA uptake at scale Identification of additional public, private or public-private

incentives needed to promote widespread CSA adoption in the cocoa sector

Functional multi-stakeholder platforms that combines climate science with industry knowledge to reduce risk faced by cocoa in Ghana going forward.

• We seek to add value to what all of you are already doing around climate change and look forward to hearing what you think, how we might best collaborate and what additional issues should be considered.

Any question for clarification?

Thank you