Fair Trade: Overview, Impact, Challenges - Are you looking for one ...

More documents

Recommendations

Info

Annex 4: Case Study – Cocoa in Ghana Fair Trade: Overview, Impact, Challenges Annex 4: Case Study - Cocoa in Ghana 1. Introduction .........................................................................................4-2 2. The World Market for Cocoa ..............................................................4-2 2.1 The Cocoa Market: General Features ...............................................4-2 2.2 Production .........................................................................................4-3 2.3. Consumption.....................................................................................4-4 2.4. Price Issues ......................................................................................4-5 2.5 International Commodity Agreements and Cocoa .............................4-5 2.6 Future Prospects ...............................................................................4-6 3. Fair Trade in Cocoa.............................................................................4-7 3.1 Fair Trade Labelling and Cocoa ........................................................4-7 3.2 The UK Fair Trade Chocolate Market..............................................4-12 3.3 The International Cocoa Market and Fair Trade..............................4-14 4. Cocoa Production and Marketing in Ghana....................................4-16 4.1 The Production and Consumption of Ghanaian Cocoa ...................4-16 4.2 Cocoa Marketing and Pricing Policy in Ghana.................................4-18 5. Fair Trade in Ghanaian Cocoa .........................................................4-23 6. Key Issues .........................................................................................4-26 6.1 Comparing the Fair Trade and Mainstream Supply Chains ..............4-26 6.2 The Role of DFID Support ...............................................................4-27 6.3 Impact Assessment .........................................................................4-28 7. Conclusion...........................................................................................4-29 APPENDIX 1 The World Cocoa Market...................................................4-31 APPENDIX 2 Fair Trade in Ecuadorian Cocoa.......................................4-32 4-1
1. Introduction Fair Trade: Overview, Impact, Challenges Annex 4: Case Study - Cocoa in Ghana This paper considers the development of Fair Trade (FT) in Ghanaian cocoa within its broader national and international context. It was prepared by Brendan Bayley, Dr. George Mavrotas, and Dr Victor Nyanteng. The paper has two objectives. ♦ To provide a more detailed context for discussing the role, prospects and significance of FT initiatives. ♦ To illustrate the issues and problems associated with an assessment of the impact of FT initiatives, in the context of DFID poverty objectives. This case study is structured as follows. Sections 2 and 3 consider the main features of the international and Ghanaian cocoa markets respectively and the degree to which the realities of these markets are consistent with the arguments advanced in favour of FT initiatives. Section 4 reviews FT in cocoa internationally. Section 5 considers the development of Kuapa Kokoo and FT in Ghanaian cocoa. Section 6 examines the relationship between the FT and mainstream supply chains and other issues including assessing the impact of FT initiatives. Section 7 outlines conclusions. Appendix 1 presents summary information on the world cocoa market and Appendix 2 summarises experience with another Fair Trade initiative in Ecuador The experience with Kuapa Kokoo suggests that initiatives aimed at building capacity and promoting organisational development amongst southern market intermediaries, particularly in the context of moves away from state controlled marketing regimes to more liberal marketing arrangements, can be of real value in improving the marketing opportunities available to farmers. However, the case study highlights the need to distinguish clearly between the FT marketing chain (linking consumers to producers with FT labelled products) and producer organisations that qualify for the FT register, but only a very small proportion of whose sales may be on FT terms. 2. The World Market for Cocoa 2.1 The Cocoa Market: General Features Cocoa beans can be processed into a variety of products. These include: cocoa butter, which is used in the manufacture of chocolate as well as in cosmetic products such as moisturising creams and soaps; cocoa powder, an ingredient in many foodstuffs; and cocoa liquor, which is used with other ingredients to produce chocolate (Adomako, 1995). Only a small proportion of final consumption (no more than 12%) takes place in producing countries. The balance is traded in the form of beans or cocoa products. The world cocoa market is characterised by a significant degree of volatility which is a function of a number of market features: ♦ The cocoa market has always been vulnerable to sudden and unpredictable changes in output resulting from climatic variations in different producing countries, changes in the business cycle, and the changing use of cocoa substitutes in a relatively small number of consuming countries. The concentration of production and consumption 4-2
Page 1 and 2:
Oxford Policy Management, 6 St Alda
Page 3 and 4:
List of Annexes Annex 1: Terms of R
Page 5 and 6:
iv Fair Trade: Overview, Impact, Ch
Page 7 and 8:
vi Fair Trade: Overview, Impact, Ch
Page 9 and 10:
viii Fair Trade: Overview, Impact,
Page 11 and 12:
2 Fair Trade: Overview, Impact, Cha
Page 13 and 14:
Fair Trade: Overview, Impact, Chall
Page 15 and 16:
Page 17 and 18:
Box 1 Profiles of Selected Alternat
Page 19 and 20:
10 Fair Trade: Overview, Impact, Ch
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
3 Commodity Markets and Fair Trade
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42: 5.2 Challenges for the Fair Trade M
Page 43 and 44: 34 Fair Trade: Overview, Impact, Ch
Page 45 and 46: 6.1 Agents of Change a. Market Tran
Page 47 and 48: 6.2 Broadening the Impact 38 Fair T
Page 49 and 50: 7. Recommendations for DFID 40 Fair
Page 51 and 52: 42 Fair Trade: Overview, Impact, Ch
Page 53 and 54: Annex 1: Terms of Reference for Fai
Page 55 and 56: B. Fair Trade in the Mainstream 1-3
Page 57 and 58: Fair Trade: Overview, Impact, Chall
Page 59 and 60: Members of the Kuapa Kokoo Primary
Page 67 and 68: 1. Introduction 3-2 Fair Trade:Over
Page 69 and 70: Fair Trade:Overview, Impact, Challe
Page 73 and 74: 2.6 The Effect of Policy Reforms in
Page 75 and 76: 3-10 Fair Trade:Overview, Impact, C
Page 77 and 78: Conditions for the use of the FT la
Page 91: Appendix I: Data on Coffee in Tanza
Page 105 and 106: 3.3 The International Cocoa Market
Page 117 and 118: 6. Key Issues Fair Trade: Overview,
Page 123 and 124: APPENDIX 2 Fair Trade in Ecuadorian
Page 129 and 130: 6-2 Fair Trade: Overview, Impact, C
show all

Fair Trade: Overview, Impact, Challenges - Are you looking for one ...

Create successful ePaper yourself

Delete template?

Save as template?