Securing sustainable supply chains with Cargill and IFC
 

Situation

Cargill is one of the world’s largest agricultural trading companies, providing food, agriculture, financial and industrial products and services globally. Enabling farmers to achieve better incomes is what Cargill sees as key to securing a lasting future for the cocoa and chocolate industry.

Through the Cargill Coop Academy, Cargill aims to provide cocoa cooperative leaders in Cote d’Ivoire with the management skills to make their organization more professional, efficient and successful.

Cargill sought support from the International Finance Corporation (IFC) and SCOPEinsight to address two common challenges for cocoa cooperatives: cooperative governance and access to finance. A concrete requirement was the lack of asset finance available to invest in trucks to bring cocoa beans more efficiently and rapidly to market.

Up until this point farmers and their cooperatives have not had access to affordable finance in order to grow, improve or sustain their businesses. This is a really exciting development as access to finance and to better transportation will make a critical difference to the success of the cooperatives. Successful cooperatives are critical to the future of cocoa farming and cocoa communities.”- Lionel Soulard, Managing Director West Africa Cargill Cocoa & Chocolate.

Approach

Cargill, IFC and SCOPEinsight established a long-term partnership in order to assess and improve the business skills of 300 cocoa cooperative leaders in Côte d’Ivoire. The partnership includes the following elements:

  • IFC and SCOPEinsight co-developed the SCOPE Basic assessment tool to assess the capacity level  of the cocoa cooperatives
  • IFC and SCOPEinsight co-developed an IT system for smart data entry and a database to allow benchmarking of results across regions and sectors
  • SCOPEinsight trained staff of Cargill and the Cargill Coop Academy (serviced by TechnoServe) to use the new SCOPE Basic assessment tool
  • SCOPE Basic assessment of 80 cocoa cooperatives by the trained staff
  • Improvement of TechnoServe’s training curriculum, aligning it with the assessment dimensions in the SCOPE Basic assessment. This enabled TechnoServe to target training in the Coop Academy towards the most critical needs of the cocoa cooperatives
  • Monitoring of progress made on the SCOPE assessment dimensions through re-assessments

Results

  • New and innovative assessment tools developed, enabling the partners of SCOPEinsight to conduct assessments by themselves and do their own data analysis and benchmarking
  • Screened and segmented cocoa cooperatives in Cargill’s supply chain based on their professionalism and business performance
  • Improved training curriculum for the Cargill Coop Academy, targeted to improve the professionalism of the cooperatives and higher assessment scoring
  • 43 of the assessed cooperatives have already obtained a commercial mid-term (3 yrs) loan for the lease of new trucks for cocoa bean transportation. The loans were provided by Ivorian Bank SIB and backed by Cargill at significantly lower interest rates than currently available
  • In total, 78 trucks will be leased in the first year of the program alone.

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“ Successful cooperatives are critical to the future of cocoa farming and cocoa communities (Cargill) ”