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Bottlenecks, stresses and risks in the cocoa supply chain in Ghana: recommendations to increase its resilience











Artavia Oreamuno, M.A., Croppenstedt, A. 2023. Bottlenecks, stresses and risks in the cocoa supply chain in Ghana: recommendations to increase its resilience. FAO Commodity and Trade Policy Research Working Paper, No. 58. Rome, FAO. 




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    Cotton plays an important role in the economy of Burkina Faso, accounting for about 4 percent of GDP and 14 percent of export earnings. The COVID 19 pandemic had a strong impact on international cotton supply chains, with confinement measures affecting sales of textiles and apparel as well as international logistics, which in turn affected cotton markets and disturbed trade and international prices. In addition, national cotton supply chains are vulnerable to other shocks and stresses such as droughts, pests, storms, and irregular weather patterns resulting from climate change. This study aimed to identify major bottlenecks, risks and stresses affecting the cotton supply chain in Burkina Faso, with the purpose of deriving lessons to strengthen its resilience capacity and development, and with it, to improve the situation of the millions of livelihoods dependent on the cotton supply chain. The findings show that disruption in global cotton markets led to lower domestic cotton purchase prices in Burkina Faso, but that the overall impact on cotton domestic markets was limited. Nonetheless, poverty and food security was negatively affected. Key constraints include low incomes, natural capital, availability and costs of irrigation systems and tractors, and the availability of financial options. The low level of domestic processing of cotton fibre is also considered an important bottleneck. The key risks to the cotton supply chain in Burkina Faso are identified as climate change, pests and insecurity. Furthermore, governance issues negatively impacts on farmer’s motivation, farming skills, extension services and the availability of financing options.
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    The climate smart agriculture (CSA) concept reflects an ambition to improve the integration of agriculture development and climate responsiveness. It aims to achieve food security and broader development goals under a changing climate and increasing food demand. CSA initiatives sustainably increase productivity, enhance resilience, and reduce/remove greenhouse gases (GHGs), and require planning to address trade-offs and synergies between three pillars: productivity, adaptation and mitigation. The priorities of different countries and stakeholders are reflected to achieve more efficient, effective, and equitable food systems that address challenges in environment, social, and economic dimensions across productive landscapes. The country profile provides a snapshot of a developing baseline created to initiate discussion, both within countries and globally, about entry points for investing in CSA at scale. 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Most farms are under 2 ha with backyard farming done to supplement household food or income. The main crops and products include coconut, cinnamon, vanilla, sweet potato, cassava, banana and tuna. Seychelles has the highest rate of overweight and obesity in Africa due to the shift from predominantly unprocessed traditional foods to a more westernised dietary intake consisting mainly of refined and processed foods. most greenhouse gas (GHG) emission come from the energy sector, followed by waste and agriculture which contributes 0.79% of the total. Seychelles has outlined in its nationally determined contributions mitigation actions in the forestry, energy and transport, and waste sectors. In agriculture, actions to mitigate climate change include: promotion of agricultural practises such as agroforestry which would involve mainstreaming strategies to limit deforestation and increase the sink capacity of forests. Challenges for the agricultural sector include (i) deforestation and unsuccessful intensification, (ii) uncontrolled urbanisation, land clearing, bush fires and population pressure, and (iii) high reliance on food imports. Agriculture in Seychelles is limited by a lack of arable land and extreme rainfall patterns and meteorological events like tropical storms, floods and droughts. Climate change poses serious challenges to the country such as uncontrolled economic and social consequences of floods, land degradation, sea-level rise, coastal erosion, declining agricultural yields, health vulnerability, and increased occurrence of drought. CSA technologies and practises present opportunities for addressing climate change challenges as well as for economic growth and development of the agriculture sector. 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