30<strong>World</strong> Agr<strong>of</strong>orestry <strong>in</strong>to the Future(Cheyns 2001). And there is grow<strong>in</strong>g worldwidedemand for fair trade and susta<strong>in</strong>ableproduction, which br<strong>in</strong>g new requirementsto producers. A good example is the recentcreation <strong>of</strong> the RSPO – the Roundtable forSusta<strong>in</strong>able Palm Oil (http://www.susta<strong>in</strong>able-palmoil.org)– that gathered togethermany stakeholders from the sector. Somecommodities are obviously more advancedthan others: c<strong>of</strong>fee quality, for example, hasmore consumer recognition while few knowabout different types <strong>of</strong> rubber.However, promotion <strong>of</strong> the terroir conceptand other certification processes <strong>of</strong>ten facesopposition from downstream <strong>in</strong>dustrial sectorswhere the feel<strong>in</strong>g is that end-productquality depends exclusively on their knowhow.<strong>The</strong>y do not accept the idea that thelocation, crop variety and technical skills <strong>of</strong>the farmer can play a role <strong>in</strong> the quality <strong>of</strong>feredto consumers. At the moment farmersare not organized, end-consumers know virtuallynoth<strong>in</strong>g about the commodity cha<strong>in</strong>s<strong>in</strong>volved (except perhaps for c<strong>of</strong>fee), andit rema<strong>in</strong>s to be seen if the costs <strong>of</strong> variouscertification processes can be justified byprice improvements.<strong>The</strong> way forwardsAlthough perennial tree crops are only part<strong>of</strong> the economic tapestry <strong>of</strong> national andlocal development, they possess uniquecharacteristics and it is worth pay<strong>in</strong>g attentionto how they can better contribute.This section suggests policy options andf<strong>in</strong>ancial and technological actions thatwill ensure that tree crop systems play an<strong>in</strong>creas<strong>in</strong>g role <strong>in</strong> susta<strong>in</strong>able development.Political and f<strong>in</strong>ancial mechanismsfor susta<strong>in</strong>ability<strong>The</strong>re are three essential aspects to improv<strong>in</strong>gthe tree crop sector: land tenure regulations,taxes and the fund<strong>in</strong>g <strong>of</strong> activities.Firstly, it is important for the susta<strong>in</strong>ability<strong>of</strong> tree crop-based farm<strong>in</strong>g systems that therelationship between land tenure and perennialtree crop development be considered.This relationship is not straightforward: localconditions are diverse and complex andsimple models cannot be extrapolated. Butpublic authorities need to be aware <strong>of</strong> howformal and <strong>in</strong>formal tenure arrangementsplay a role <strong>in</strong> the tree-crop sector.Secondly, as with many goods, the tax rateapplied to tree crops dest<strong>in</strong>ed for export isa decisive element <strong>in</strong> the susta<strong>in</strong>ability <strong>of</strong>the production cha<strong>in</strong>. A satisfactory balancemust be found between a low rate thatencourages commodity cha<strong>in</strong> vitality and ahigher rate to meet the State’s requirements.As perennial crops are <strong>of</strong>ten one <strong>of</strong> its mostvisible and lucrative resources, the State hastended to over-tax <strong>in</strong> the past.F<strong>in</strong>ally, farmers’ access to f<strong>in</strong>ancial resourcesrelies on two th<strong>in</strong>gs: production earn<strong>in</strong>gsand access to credit. As discussed earlier,wide variation <strong>in</strong> product prices creates <strong>in</strong>come<strong>in</strong>stability; itself a factor <strong>in</strong> production<strong>in</strong>security. Several options have been developedto help <strong>in</strong>clud<strong>in</strong>g one by the <strong>World</strong>Bank, which has taken the <strong>in</strong>itiative to setup an <strong>in</strong>ternational task force to exam<strong>in</strong>ethe feasibility <strong>of</strong> commodity price risk management.This <strong>in</strong>volves <strong>of</strong>fer<strong>in</strong>g producersrisk-management <strong>in</strong>struments, implementedby local transmission mechanisms, cooperatives,agricultural banks or exporters. <strong>The</strong>first step has to be to strengthen the f<strong>in</strong>ancial<strong>in</strong>stitutions <strong>in</strong> many countries otherwisethese funds will be wasted.Access to credit is <strong>of</strong>ten difficult for poorfarmers. In order to facilitate such access,land tenure regulations could be changed togive perennial tree crops a guarantee valueto help secure a loan. However, this mightalso lead to a rise <strong>in</strong> land speculation andland be<strong>in</strong>g appropriated by the rich, <strong>in</strong>creas<strong>in</strong>grural landlessness. Hence a holistic andforward-th<strong>in</strong>k<strong>in</strong>g strategy that <strong>in</strong>cludes attract<strong>in</strong>gmedium-scale <strong>in</strong>dustrialization <strong>of</strong>tree crop <strong>in</strong>dustries has to be envisaged.Overall what is needed is a clear demonstration<strong>of</strong> how tree crops contributeto food security and poverty reduction atboth household and national levels. <strong>The</strong>problem is that there persists a simplisticnotion that food security is ma<strong>in</strong>ly to dowith household food production; <strong>in</strong> fact itdepends upon the ensemble <strong>of</strong> strategiesthat people use to get food and allocatetheir land and labour (for food and also foreducation). <strong>The</strong>re is evidence that tree crop<strong>in</strong>come, com<strong>in</strong>g regularly throughout theyear, contributes greatly to the formationand ma<strong>in</strong>tenance <strong>of</strong> social capital, go<strong>in</strong>gtowards school fees, house build<strong>in</strong>g andsocial stability (e.g. marriage payments andhealth costs; Russell and Tchamou 2001).Social capital creates a safety net that bufferscommunities aga<strong>in</strong>st risk.Tree crops and other plants, such as thosewith medic<strong>in</strong>al value, <strong>in</strong>tercropped <strong>in</strong>plantations are a source <strong>of</strong> <strong>in</strong>come and nutrition.<strong>The</strong>se crops may provide jobs for arural labour force that is desperately underemployed.<strong>The</strong> addition <strong>of</strong> small enterprisessuch as tree nurseries and primary process<strong>in</strong>g<strong>of</strong> tree products adds stability to fragilerural economies. In some cases the localvalue <strong>of</strong> <strong>in</strong>tercrops can exceed the value <strong>of</strong>the traditional tree crop (Gockowski andDrury 1999).Organization <strong>of</strong> producersWith small farms and limited f<strong>in</strong>ancialresources, isolated smallholders hold nomore sway over product prices or commoditycha<strong>in</strong> balances than they do overthe agricultural policies <strong>of</strong> their countries,especially <strong>in</strong> a context <strong>of</strong> globalization.
Chapter 3: <strong>The</strong> future <strong>of</strong> perennial tree crops31Producer organizations enable farmers toexert a true negotiat<strong>in</strong>g <strong>in</strong>fluence and totake part <strong>in</strong> draw<strong>in</strong>g up agricultural policies,i.e. to become fully fledged stakeholders,not only <strong>in</strong> the commodity cha<strong>in</strong>but also <strong>in</strong> the susta<strong>in</strong>able development <strong>of</strong>their country.<strong>The</strong>re are also research and development(R&D) implications: farmer groups canbecome <strong>in</strong>volved with capacity build<strong>in</strong>g,<strong>in</strong>creas<strong>in</strong>g the emphasis on quality ratherthan quantity. <strong>The</strong>y can push for the creation<strong>of</strong> quality zones and other certificationmechanisms, and provide the demand fordevelopment <strong>of</strong> diversification optionswith high and susta<strong>in</strong>ed economic value.National and <strong>in</strong>ternational support forthese organizations should come <strong>in</strong> theform <strong>of</strong> tra<strong>in</strong><strong>in</strong>g and <strong>in</strong>formation, to givethe farmers the resources they need to exertnegotiat<strong>in</strong>g power with<strong>in</strong> a commoditycha<strong>in</strong>. Social sciences research can helpby analys<strong>in</strong>g local situations and propos<strong>in</strong>gapproaches that have been tried and testedelsewhere <strong>in</strong> similar circumstances.<strong>The</strong>re are many types <strong>of</strong> farmer organization.<strong>The</strong>se <strong>in</strong>clude sharehold<strong>in</strong>g schemes,where producers buy a share <strong>of</strong> a downstreambus<strong>in</strong>ess (e.g. bulk<strong>in</strong>g or primaryprocess<strong>in</strong>g); cooperatives, which do not<strong>in</strong>volve f<strong>in</strong>ancial transactions, <strong>in</strong>stead thefocus is on shar<strong>in</strong>g <strong>in</strong>formation, tra<strong>in</strong><strong>in</strong>gand advocacy; or bulk<strong>in</strong>g centres that arel<strong>in</strong>ked to farmers and farmer groups, whichis be<strong>in</strong>g proposed, for example, <strong>in</strong> the Kenyandairy <strong>in</strong>dustry.Whatever form the group takes, it is importantthat the impetus comes from thefarmers themselves. Groups created bynon-governmental organizations (NGOs)or governments are <strong>of</strong>ten doomed to failurebecause the farmers jo<strong>in</strong><strong>in</strong>g are notnecessarily the best representatives <strong>of</strong> theircommunities, and their motives for jo<strong>in</strong><strong>in</strong>gmay be coloured by the expectation <strong>of</strong>handouts. Perhaps the best way for NGOsand governments to help is by network<strong>in</strong>gand build<strong>in</strong>g the capacity <strong>of</strong> exist<strong>in</strong>ggroups that have stood the test <strong>of</strong> time(Tanui 2003).Integrat<strong>in</strong>g tree crop and agr<strong>of</strong>orestry extensioncould enhance bene<strong>fit</strong>s to farmergroups and reduce risks by <strong>in</strong>troduc<strong>in</strong>g arange <strong>of</strong> options. Agr<strong>of</strong>orestry groups couldprovide an additional platform <strong>of</strong> actionthat is perhaps less politicized than treecrop commodity cha<strong>in</strong>s. Better land managementcan also be <strong>in</strong>tegrated. <strong>The</strong> <strong>challenge</strong>is to ma<strong>in</strong>ta<strong>in</strong> or even <strong>in</strong>crease thequality <strong>of</strong> the tree commodity.Cooperation with<strong>in</strong> commoditycha<strong>in</strong>sIn the short term, the <strong>in</strong>terests <strong>of</strong> the differentstakeholders <strong>in</strong> a commodity cha<strong>in</strong> maydiverge and take the form <strong>of</strong> a power struggle,but <strong>in</strong> the long term it is the prosperity<strong>of</strong> the entire cha<strong>in</strong> that is everyone’s ma<strong>in</strong>concern. If certa<strong>in</strong> categories <strong>of</strong> stakeholderssystematically lose out, they will leavethat field <strong>of</strong> activity, which can be fatal tothe commodity cha<strong>in</strong> (this happened tocastor oil producers a few decades ago).Most commodity cha<strong>in</strong>s have either formalor <strong>in</strong>formal structures <strong>in</strong> which stakeholdersmeet, exchange <strong>in</strong>formation and sometimesimplement jo<strong>in</strong>t projects. Ramp<strong>in</strong>gup such cooperation could guarantee moreequitable relations between stakeholdersand promote services that ensure thesmooth runn<strong>in</strong>g <strong>of</strong> commodity cha<strong>in</strong>s.<strong>The</strong> Global Forum on Agricultural Research(GFAR) has an <strong>in</strong>itiative to promote globalresearch programmes for perennial treecrops, <strong>in</strong> a move to strengthen cooperationamong commodity cha<strong>in</strong> stakeholders. Inthe context <strong>of</strong> f<strong>in</strong>ancial restrictions that areseriously affect<strong>in</strong>g research structures <strong>in</strong>develop<strong>in</strong>g countries, better cooperationwith<strong>in</strong> commodity cha<strong>in</strong>s (and sometimeseven between commodity cha<strong>in</strong>s) couldhelp <strong>in</strong> putt<strong>in</strong>g all these assets to more effectiveuse, so as to concentrate resourceson what needs true scientific and technical<strong>in</strong>novations. <strong>The</strong> GFAR Global Programmes(GPs) are a step <strong>in</strong> that direction. GPs consist<strong>of</strong> coord<strong>in</strong>ated sets <strong>of</strong> activities, carriedout by a wide range <strong>of</strong> programme participantsor partners, and directed towardsspecific problems or sets <strong>of</strong> problemsidentified at a global level. ProMusa, forbanana and planta<strong>in</strong>, and Procord for coconutare the two exist<strong>in</strong>g GPs. <strong>The</strong> cocoasector is discuss<strong>in</strong>g the feasibility <strong>of</strong> a susta<strong>in</strong>ablecocoa production GP, and otherapproaches are be<strong>in</strong>g developed for differentcommodities (Frison et al. 2000; GFAR2002; Omont and Frison 2002).<strong>The</strong>se stakeholder meet<strong>in</strong>gs and processesare important steps, but a great deal rema<strong>in</strong>sto be done to harmonize researchacross a large number <strong>of</strong> countries, many<strong>of</strong> which have weak research and extensionsystems. <strong>The</strong> most crucial next step isto design a range <strong>of</strong> options at the <strong>in</strong>terface<strong>of</strong> environmental and market imperativesthat will reduce the cost <strong>of</strong> certificationschemes to smallholders and poor countries,and to f<strong>in</strong>d cost-effective ways to supportbetter land management. <strong>The</strong>se could<strong>in</strong>clude environmental service paymentsor special arrangements between localitiesproduc<strong>in</strong>g high-value tree crops that borderfragile or protected areas. Stakeholdergroups need to address the proliferation<strong>of</strong> certification and quality standardsand also build <strong>in</strong>ternal markets for somecrops where certification schemes such asEurepGap and others present a formidablebarrier.
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Author ContactsFahmudin Agusisri@in
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Acronyms and AbbreviationsACIARAFTP
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CreditsFront cover photo: Karen Rob
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