Project Initiation Document

Cocoa in the South Pacific

Project Executive: Sean Murphy Senior Users: Julie Flood

Senior Supplier: Dave MooreProject Manager: Sarah Thomas

Date: revised 12th October 2011PID Version: October 2009

Rehabilitating cocoa towards improving livelihoods in the South Pacific.

Part A – Background (1)Executive Summary & Objectives

Project Objectives. Identify market opportunities to increase cocoa productivity and quality.Identify financial, technical and socio-economic constraints.Identify and access value-added cocoa market niches.Develop, test and encourage the adoption of best practices for increased cocoa production and quality.

Executive Summary. The project aims to rejuvenate the cocoa industry in Vanuatu by improved production and processing practices and facilities, by understanding the livelihood strategies of cocoa producers in the context of presently available incentives and by identifying value added niche and conventional markets to improve these incentives.

Part A – Background (2)Key Stakeholders and Beneficiaries

● Stakeholders and Beneficiaries:-● Donor: Australian Centre for International Agricultural

Research (ACIAR)● End-user(s): Cocoa Growers Association (CGA) and

the Vanuatu Organic Cocoa Growers Association (VOCGA)

● Partner(s): Secretariat of the Pacific Community (SPC) and CGA+VOCGA

● CABI Centres: Europe-UK; Theme Commodities

Part B – Implementation (1)Proposed Organisation Structure

● Corporate Management: Joan Kelley● Project Board:-

● Project Executive: Sean Murphy● Senior Users: Julie Flood● Senior Suppliers: Dave Moore● Project Assurance: Julie Flood● CABI Budget-holder: Sean Murphy

Note that, if not the Project Executive, the CABI Budget-holder must have written confirmation from the Project Executive, and the Project Manager if required by Project Executive, prior to authorising payment.

● Project Manager: Sarah Thomas● Team Managers:

Part B – Implementation (2)Stages

StagesWork Packages / Deliverables in Stage, unless indicated in Stage Name

StageCompletion Date

a) Business Plan Development (optional)Work Packages / Deliverables: Business Plan

1) WP1. Evaluate market opportunities Month 12

2) WP 2.Enhance crop management practices for yield3) WP 3. Enhance best practice for quality

Month 36

4) WP 4. Establish best practice for germplasm use

5) 5) WP 5. Project management and dissemination

Month 48

Part B – Implementation (3)CABI Resource RequirementsStaff(and/or role on project)

Time Required on Project(Indicate whether time is in Days or Months)

Staff required for Business Plan Development (optional):

Total time required for Business Plan Development (optional):

Estimate of Cost (£) to complete Business Plan Development Stage (optional):

Remainder of Project (excluding Business Plan Development)

Remainder of Project (excluding Business Plan Development)

Sarah Thomas 42 months

Babs Ritchie 42 months

Part B – Implementation (4)Customer Acceptance Criteria

Acceptance Criteria Target Measures

Economic impact for Vanuatu

Cocoa to be 10% of export earnings

Export earnings

Economic impact for farmers

Yields increased by 50%

Harvests delivered to cooperatives

Economic impact for farmers

Enhanced quality Returns to farmers increased 10-20%

Value added markets identified & accessed

50% increase in cocoa marketed

Export earningsCustomers identified

Part B – Implementation (5)Project Exclusions & Interfaces

Exclusions● The project is extended, via dissemination outputs and networking to Fiji,

Samoa and The Solomon Islands. This does not include practical activities in these countries

● All other crops

Interfaces● ACIAR; SPC, VOCGA, CGA

Part B – Implementation (6)Key Constraints & Assumptions

Constraints● Limited budget. This means that most CABI input will be in terms of desk

studies, training procedures and dissemination outputs

Assumptions● VOCGA, CGA and SPC will continue with on-going marketing improvements● Cocoa prices remain viable to incentivise farmers● Vanuatu government and in-country agencies support project● Interactions with Fiji, Samoa and Solomon Islands remains limited to

networking/dissemination activities or is separately funded.● Timely release of funds● Partners cooperate

Part C – Reasons for CABI (1)Key Business Benefits - Strategic

● ACIAR is an important donor for CABI ● Strengthening E-UK/SEA collaboration● Cocoa is a major commodity where we have

considerable expertise; it will help to maintain our reputation, expertise and relevance of our outputs

● The project involves all aspects of cocoa production, quality and marketing helping us to contribute to more than a niche component

● Clear grow more, lose less project● Clear mission related development project● Potential for GPHC activities

Part C – Reasons for CABI (2)Key Business Benefits – Financial(Externally funded Projects only)

Full Project Budget – Planned Comments

Donor Currency: Aus$

Exchange Rate to £: 1.6

Overall Contract Value in £ (if known): 145,984

Costs Billed to Project Donor (£)

Gross Revenue (Total Project Revenue): 145,984

Payments to External Collaborators: 0

Net Income: 145,984

CABI Implementation Costs (£)

CABI Staff Costs: 71,123

Direct Costs:(other direct costs, for example travel, etc)

52,813

Net Profit/Loss (Project Contribution): 22,048

Net Project Contribution (%): 15.10

Note that the financials should match the information in the Project Financial Analysis (PFA) form.

Part D – Risks (1)Key Risks(for Collaborator, Security, Technical Risks, see next slides)

Risk Owner Likelihood(L)

(1=Low;3=High)

Impact(I)

(1=Low; 3=High)

Total(L x I)(1=Low; 9=High)

Management Strategy

(Choose from Prevention, Reduction, Contingency, Transference, Acceptance, and give brief description of how applied)

Reduction in cocoa prices

1 3 3 Acceptance. Maintain activity through CGA and VOCGA rather than farmers

Late availability of funds

Project executive

1 3 3 Prevention. Good project management

Non-cooperation of farmers

Project Board

1 1 1 Reduction. Cocoa co-operatives in Vanuatu operate well

Part D – Risks (2)Collaborator Risks

Collaborator Name(to be paid by CABI)

Has CABI worked with them before? (Yes / No)

Assessment of Collaborator RiskInclude, for example:• Their reputation;• Past experience of working with them (if appropriate).

How much (£) in total is the Collaborator to be paid?

N/A

Part D – Risks (3)Security Risks

Location of Work Has CABI worked there before?(Yes / No)

Is there a current, or likely, security risk in that location?(Yes / No)

Is an alternative secure location eligible for project?(Yes / No)

Vanuatu Unknown No N/A

Part D – Risks (4)Technical Risks

Technical Work Has the Lead Centre previously undertaken this Technical work?(Yes / No)

Has another area of CABI previously undertaken this Technical work?(Yes / No)

Enhance cocoa production Yes Yes

Participate in information preparation and dissemination

Yes Yes

Part E – Dissemination & Impact (1)Dissemination of Results

Dissemination Method(what, how, etc)

Target Results Measures

FFS To be determined largely by VOCGA

Number of FFS conductedFarmers trainedYield responses from trained farmers

Annual and Final Reports ACIAR plus project partners Stakeholder responses

Part E - Dissemination & Impact (2)Impact of Project(Scientific, Technical, Commercial, Social, Environmental)

Impact Target Measures

Scientific and Technical. 50% yield increases through improved crop management and reduced losses due to pests and diseases. Processes to be used are well known

Yield measurements

Commercial. 60% increase in export earnings from cocoa (via increased productivity, enhanced quality and price premiums).

Trade data

Social. Livelihoods of 12500 households in Vanuatu enhanced and protected.

VOCGA data of farm payments.

Environmental. Continuation of cocoa production, rather than more damaging alternative crops grown instead of cocoa. Sustainable methods used avoiding pesticide use and misuse

Pesticide use data

Part F – Reporting and Sign-off (1)Reporting

Information Provider Information Required Interested Parties Frequency

a) Project executiveb)c)

a) PIDb)c)

Corporate Management (CABI)

a) Onceb)c)

a) Project Managerb)c)

a) Highlight Reportsb) End Project Reportc)

Project Board (CABI)

a) As requestedb) End of projectc)

a) Project Managerb)c)

a) Highlight Reportsb)c)

Marketing (CABI) a) As identified by Project Manager or Boardb)c)

a)Project Managerb)c)

a) Progress Reportb)c)

Collaborators (External) – paid by CABI

a) 6 Monthlyb)c)

a) Project Managerb)c)

a) Progress Reportb)c)

Partners (External) a) 6 monthlyb)c)

a) Project Managerb)c)

a) Annual Progress Reportsb) Financial Reportc)

Donors / Funding Agency (External)

a) As specified by donorb)c)

a)b)

a)b)

Other – please specify

a)b)

Part F – Reporting & Sign-off (2)Supporting Documentation

As a minimum to accompany the completed PID:● Project Financial Analysis

Extra supporting documentation may be provided:● Gantt Chart (or Log Frame)● Any other documentation as appropriate

Please note that projects with an Intellectual Property Right (IPR) component require the contract to be submitted to PMG prior to signature.

Part F – Reporting & Sign-off (3)Authorisation

Project Executive / EMT: ……………………………………………

Date: …………………………………………………………..

PMG Sign-off (Level 1 Projects) …………………………………………..

Date: ………………………………………………………………………….

Approval of: PID Development of Business Plan

PMG Comments and/or Follow-on Actions: