The three-day high-level multi-stakeholder workshop on traceability, organized by the US Department of Agriculture TRACE Project and Lutheran World Relief, was a truly enlightening experience.
Held from the 24th to the 26th of November, the event brought together industry leaders, experts and key stakeholders, from Nigeria’s cocoa and agro-commodities sector. The event provided a platform to discuss practical strategies for achieving traceability and meeting sustainability compliance standards.
The workshop was masterfully hosted by representatives from C-lever, who facilitated the sessions and anchored engaging conversations throughout the three days. At the core of these discussions was the TRACE (Traceability and Resilience in Agriculture and Cocoa Ecosystems) Project, an innovative initiative aimed at strengthening traceability systems and advancing sustainability in the cocoa industry.
Key Focus: Building a Traceable and Sustainable Cocoa Sector
The workshop spotlighted essential themes contributing to Nigeria’s positioning as a global leader in sustainability and traceability in cocoa. Among other things, the discussions reiterated the urgent need for compliance with the European Union Deforestation Regulation (EUDR) while exploring the requirements for a long-term transition to a sustainable, profitable, and equitable industry. Key highlights from the discussions included:
1. Policies and Regulation: Creating a Conducive Environment
Participants discussed the necessity for a robust policy framework to drive transformation in the cocoa sector. Some of the key policy considerations explored included:
● Financial Incentives for Compliance: This would involve a tiered taxation system to encourage traceability and sustainability. In this system, the lowest taxes would be charged for traceable, EUDR-compliant cocoa, while non-compliant or non-traceable cocoa would attract heftier taxes.
● Conditional Cocoa Farming Permits: Relevant authorities would establish permits for cocoa farm plots operating within protected areas, ensuring these plots meet criteria such as long-term agricultural use and minimal restoration potential. This solution was proposed to address the dilemma of dealing with cocoa plantations already existing in protected areas.
● Enforcement and Oversight: A strong, mixed public-private platform or government body would oversee compliance and ensure the effective implementation of policies.
2. Traceability Across the Value Chain
The workshop examined the roles and responsibilities of all actors in the value chain in achieving traceability:
● Exporters: As central players in the supply chain, exporters carry the bulk of the responsibility for mapping cocoa plots, updating sustainability data, and ensuring compliance in their operations.
● Licensed Buying Agents (LBAs): Key intermediaries between producers and exporters, LBAs are tasked with ensuring traceability from farm gate to export. Their expanded roles include providing agro-inputs, offering advisory services, and extending pre-season loans to farmers.
● Farmer Groups: Smallholder farmer groups, coordinated by lead farmers, are encouraged to be more cooperative and assist in cocoa plot mapping, sustainability data collection, and quality assurance, without engaging in cocoa buying or selling.
3. Land Use and Forest Preservation
One of the most pressing issues discussed was the need to address outdated boundaries of protected areas. It was noted that a notable portion of Nigeria’s cocoa beans is illegally produced within these areas. While these plantations are non-compliant, they cannot simply be ignored or destroyed. The following solutions were proposed:
● Conditional Cocoa Farming Permits: Government-established task forces should issue permits to regulate agricultural activity in protected areas, ensuring that existing plantations are registered and monitored to prevent expansion.
● Community Involvement in Conservation: Local cocoa farming communities should be empowered to play active roles in forest preservation and restoration through training and incentives.
● Agroforestry Practices: Relevant authorities should promote the integration of forest trees into cocoa farms to enhance biodiversity, improve soil health, and create “forest-friendly” cocoa plantations.
4. Balancing Sustainability and Profitability
Discussions explored how actors in the cocoa supply chain can achieve traceability and maintain sustainability compliance without sacrificing profitability. Strategic interventions suggested included:
● Digitization: Supply chain actors should leverage technologies like GIS and digital traceability tools to streamline farm mapping and data collection processes while reducing inefficiencies.
● Economic Incentives: Systemic incentives, such as fair revenue distribution across the value chain, were proposed to encourage stakeholders to adopt sustainable practices.
● Regenerative Agriculture: Participants emphasized the role of environmentally friendly practices in enhancing productivity while reducing land pressure.
Placing Sunbeth Global Concepts in the Mix
Sunbeth Global Concepts was duly represented by its sustainability executives, who actively participated in all workshop sessions and contributed to critical discussions about the future of Nigeria’s cocoa sector. They primarily addressed:
● The pressing need for land-use reforms to address agricultural activity within protected areas, including degazetting existing protected areas to identify encroached land.
● The pivotal role of farm plot mapping and data collection in enhancing transparency and sustainability.
● Redefining supply chain roles to empower Licensed Buying Agents (LBAs), cooperatives, and exporters to meet EUDR standards while building a fair and profitable cocoa value chain.
A Shared Vision for a Resilient Cocoa Sector
The workshop closed with a shared commitment among stakeholders to work collaboratively towards a sustainable, traceable, and profitable cocoa industry in Nigeria. Sunbeth Global Concepts, as a key player, remains steadfast in its mission to contribute to this transformation, aligning its strategies with the TRACE project’s objectives.
The journey to achieving EUDR compliance and building a truly sustainable cocoa sector may be challenging, but it is a necessary step towards securing the future of Nigeria’s cocoa industry. Through workshops like this, the industry is not just discussing the way forward but actively laying the groundwork for a brighter, more sustainable future.
