Funding provided by European Union’s All ACP Agricultural Commodities Programme (AAACP)
Cameroon, October 24, 2011 -- In response to a growing demand for strengthened capacity in price risk management for the cocoa industry, the World Bank’s Agricultural Risk Management Team (ARMT) is working in collaboration with the World Cocoa Foundation (WCF) and its Cocoa Livelihoods Program to deliver price risk management training to the West Africa cocoa sector. The Cocoa Price Risk Management course will be held October 24-26, 2011 in Douala.
WCF’s provides a unique platform for training on Cocoa Price Risk Management in Cameroon because it already works in partnership with members of the industry, local development organizations, and representatives of national governments. The training program will bring together representatives of farmer organizations, cocoa cooperatives, SME cocoa exporters, and other cocoa sector stakeholders from across Cameroon. It is designed as a training of trainers, and those who participate will then be expected to facilitate the course for local farmer organizations, financial institutions and exporters.
Bill Guyton, President of the World Cocoa Foundation, said, “WCF believes that partnerships like this one increase the impact and benefits to cocoa farmers, their families, and their communities. We are pleased to be cooperating with the World Bank on this initiative."
The course aims to help participants better understand and quantify price risk and acquire the knowledge and tools required to better manage the effects of volatile prices. It is designed to educate cocoa market participants (smaller scale traders, cooperatives, and financial institutions) about the risk of unmanaged price exposure and the means for managing such exposure. The training in risk assessment and physical risk management strategies should assist the farmer organizations in understanding how to better manage price risk through better understanding the causes of price risk exposure and better understanding the means for mitigating such risk.
Nabs Suma, the World Bank Consultant leading the training said "It is fantastic, that due to the financial support provided by the European Union’s All African Caribbean and Pacific Agricultural Commodities Programme we are able to deliver price risk management training to the Cameroonian cocoa sector in partnership with WCF. We hope that the training will assist the course participants in better managing the price risk exposure that they face."
Training materials are based on the experience gained by the World Bank and its partners through its activities in the area of price risk management. The training has been funded by the European Union’s All African Caribbean and Pacific Agricultural Commodities Programme (AAACP). WCF’s Cocoa Livelihoods Program is funded by the Bill & Melinda Gates Foundation with support from 15 WCF member companies.
About 23 participants are expected to be trained during the Douala meeting.