IMPROVING THE SUSTAINABILITY OF IMPROVING THE SUSTAINABILITY OF COCOA FARMING IN TRINIDAD AND COCOA FARMING IN TRINIDAD AND

TOBAGOTOBAGOby Lorraine by Lorraine WaldroptWaldropt

ICCO and Ghana Cocoa Board Roundtable ICCO and Ghana Cocoa Board Roundtable -- Accra, October 2007Accra, October 2007

OUTLINE OF PRESENTATIONOUTLINE OF PRESENTATIONINTRODUCTIONINTRODUCTIONHISTORY OF TRINIDAD AND TOBAGO COCOAHISTORY OF TRINIDAD AND TOBAGO COCOACONCEPTS OF SUSTAINABILITYCONCEPTS OF SUSTAINABILITYBACKGROUNDBACKGROUND-- Prism Prism AgriAgri Estates Co. Ltd.Estates Co. Ltd.SUSTAINABLE PRODUCTION SYSTEMSSUSTAINABLE PRODUCTION SYSTEMSSUSTAINABILITY COSUSTAINABILITY CO--FACTORSFACTORS-- LANDLANDSUSTAINABILITY COSUSTAINABILITY CO--FACTORSFACTORS-- LABOURLABOURSUSTAINABILITY COSUSTAINABILITY CO--FACTORSFACTORS-- CAPITALCAPITALSUMMARYSUMMARYPOINTS FOR CONSIDERATIONPOINTS FOR CONSIDERATIONACKNOWLEDGEMENTSACKNOWLEDGEMENTS

INTRODUCTIONINTRODUCTIONFine or flavour cocoa beans are produced from Fine or flavour cocoa beans are produced from CriolloCriollo or or TrinitarioTrinitario cocoacocoa--tree varieties, while bulk cocoa beans tree varieties, while bulk cocoa beans come from come from ForasteroForastero trees.trees.

The International Cocoa Agreement, 1993, recognizes 17 The International Cocoa Agreement, 1993, recognizes 17 countries as producers of fine or flavour cocoa. countries as producers of fine or flavour cocoa.

Of these, 8 are classified as exclusive producers of fine Of these, 8 are classified as exclusive producers of fine or flavour cocoa; Dominica, Grenada, Jamaica, St. Lucia, or flavour cocoa; Dominica, Grenada, Jamaica, St. Lucia, St. Vincent and the Grenadines, Samoa, Suriname, and St. Vincent and the Grenadines, Samoa, Suriname, and Trinidad and Tobago.Trinidad and Tobago.

The others are part producers of fine or flavour cocoa;The others are part producers of fine or flavour cocoa;Ecuador (75%), Venezuela (50%), and Costa Rica and Ecuador (75%), Venezuela (50%), and Costa Rica and Colombia (25%).Colombia (25%).

INTRODUCTIONINTRODUCTION

INTRODUCTIONINTRODUCTIONLatin American and the Caribbean region supply 80% of world Latin American and the Caribbean region supply 80% of world fine or flavour cocoa, followed by Asia and Oceania (18%) and fine or flavour cocoa, followed by Asia and Oceania (18%) and Africa (2%). Africa (2%).

The market for fine or flavour cocoa is a relatively small, highThe market for fine or flavour cocoa is a relatively small, highlyly--specialized and separate market, with its own supply and demand specialized and separate market, with its own supply and demand characteristics.characteristics.

The share of fine or flavour cocoa in the total world productionThe share of fine or flavour cocoa in the total world production of of cocoa beans has fallen dramatically, from 50% at the beginning cocoa beans has fallen dramatically, from 50% at the beginning of this century to just under 5% (120 thousand tonnes) per of this century to just under 5% (120 thousand tonnes) per annum now. annum now.

The collapse in the relative importance of the production of finThe collapse in the relative importance of the production of fine e or flavour cocoa is explained by the fact that most major activior flavour cocoa is explained by the fact that most major activity ty over the past five decades has involved only bulk cocoa.over the past five decades has involved only bulk cocoa.

INTRODUCTIONINTRODUCTION

HISTORY OF TRINIDAD AND TOBAGO COCOAHISTORY OF TRINIDAD AND TOBAGO COCOA

Trinidad and Tobago is the birthplace of the Trinitario cocoa Trinidad and Tobago is the birthplace of the Trinitario cocoa germplasmgermplasm. .

Trinidad and Tobago is an exclusive producer of fine or flavour Trinidad and Tobago is an exclusive producer of fine or flavour cocoa.cocoa.

Trinidad and Tobago is world renowned for itsTrinidad and Tobago is world renowned for its’’ exquisite quality and exquisite quality and distinctive taste.distinctive taste.

Ranked 5Ranked 5thth in the World in 1921 with a production of over 30 million in the World in 1921 with a production of over 30 million kg of cocoa beans.kg of cocoa beans.

Trinidad and Tobago is the custodian of the International Cocoa Trinidad and Tobago is the custodian of the International Cocoa Gene Bank (ICG,T) and so possess the most important collection oGene Bank (ICG,T) and so possess the most important collection of f cocoa varieties in the World.cocoa varieties in the World.

HISTORY OF TRINIDAD AND TOBAGO COCOAHISTORY OF TRINIDAD AND TOBAGO COCOA

Production declined drastically to 935,000 Production declined drastically to 935,000 kg in 1992 due to socioeconomic and kg in 1992 due to socioeconomic and disease problems.disease problems.

Currently, demand outstrips modest Currently, demand outstrips modest production and the highest price is production and the highest price is commanded on the World Market.commanded on the World Market.

Trinidad and Tobago can comfortably Trinidad and Tobago can comfortably triple itstriple its’’ production without affecting production without affecting price.price.

CONCEPTS OF SUSTAINABILITYCONCEPTS OF SUSTAINABILITYSustainability can be defined within two broad classifications:Sustainability can be defined within two broad classifications:

1. Economic Sustainability: A farm which is a business entity ca1. Economic Sustainability: A farm which is a business entity can only be n only be sustainable if it is profitable.sustainable if it is profitable.

2. Environmental Sustainability2. Environmental Sustainability-- A production system can be sustainable A production system can be sustainable only if the practices employed are sustainable for the natural eonly if the practices employed are sustainable for the natural environment.nvironment.

Social sustainability can be achieved when these two ideals are Social sustainability can be achieved when these two ideals are satisfied.satisfied.

Cocoa is a natural forest under storey crop and so is well suiteCocoa is a natural forest under storey crop and so is well suited to the d to the cropping system of permanent and temporary shade .cropping system of permanent and temporary shade .

Farming systems in Trinidad and Tobago are geared towards the aFarming systems in Trinidad and Tobago are geared towards the adoption doption of the most sustainable production systems.of the most sustainable production systems.

COCOA FARMING SYSTEMS IN TRINIDAD AND TOBAGOCOCOA FARMING SYSTEMS IN TRINIDAD AND TOBAGO

There are two broad classifications of cocoa cultivation systemsThere are two broad classifications of cocoa cultivation systems..

Plantation based systems:Plantation based systems:

–– large estates where cocoa is grown as a single crop or intercroplarge estates where cocoa is grown as a single crop or intercropped ped with vegetable crops or lumber.with vegetable crops or lumber.

Small land holder systems (small cocoa farmers):Small land holder systems (small cocoa farmers):

-- family run estates with mixed cropping systems of plantain, family run estates with mixed cropping systems of plantain, banana, cassava or pigeon peas.banana, cassava or pigeon peas.

There are approx. 3,000 registered small cocoa farmers in TriniThere are approx. 3,000 registered small cocoa farmers in Trinidad and dad and Tobago. Of these farmers, 61%, 22% and 12% own 2Tobago. Of these farmers, 61%, 22% and 12% own 2--hectare, 5hectare, 5--hectare and 10hectare and 10--hectare respectively. There are only 5 large farmers hectare respectively. There are only 5 large farmers which account for 5% of the farm population.which account for 5% of the farm population.

Average production of cocoa beans from Trinidad and Tobago varieAverage production of cocoa beans from Trinidad and Tobago varies s from 1.5 million to 2.5 million kg/ year.from 1.5 million to 2.5 million kg/ year.

COCOA FARMING SYSTEM IN TRINIDAD COCOA FARMING SYSTEM IN TRINIDAD AND TOBAGOAND TOBAGO

PRISM AGRI ESTATES CO.LTD.PRISM AGRI ESTATES CO.LTD.

PRISM AGRI ESTATES CO.LTD.PRISM AGRI ESTATES CO.LTD.

A plantation based system comprising of 4 estates situated in A plantation based system comprising of 4 estates situated in the central and southern regions of Trinidad and Tobago.the central and southern regions of Trinidad and Tobago.

Producer of the exclusive brand, Producer of the exclusive brand, TAMANA COCOA TAMANA COCOA ..

Company Vision: Company Vision: ““To become a diversified agroTo become a diversified agro--enterprise with enterprise with the emphasis on the production of high quality cocoathe emphasis on the production of high quality cocoa””..

The company climate facilitates the development of new The company climate facilitates the development of new innovations and technology in cocoa farming.innovations and technology in cocoa farming.

The estates comprise of 750 ha of cocoa trees of the Trinitario The estates comprise of 750 ha of cocoa trees of the Trinitario variety.variety.

A mixed farming system is used on all estates where lumber, A mixed farming system is used on all estates where lumber, plantain and banana trees are intercropped with the cocoa trees plantain and banana trees are intercropped with the cocoa trees to provide shade for the crop.to provide shade for the crop.

The cocoa beans produced on the estates are produced at a high The cocoa beans produced on the estates are produced at a high quality and are in high demand for chocolate production in quality and are in high demand for chocolate production in Europe.Europe.

Prism Prism AgriAgri Estates Co. Ltd. is trying to adopt the most Estates Co. Ltd. is trying to adopt the most sustainable farming techniques.sustainable farming techniques.

SUSTAINABLE PRODUCTION SYSTEMSSUSTAINABLE PRODUCTION SYSTEMSCocoa farming systems in Trinidad and Tobago contribute to econoCocoa farming systems in Trinidad and Tobago contribute to economic and mic and environmental sustainability through the manipulation of three fenvironmental sustainability through the manipulation of three farm arm variables; Land, Labour and Capital.variables; Land, Labour and Capital.

Through the manipulation of these variables farmers are better aThrough the manipulation of these variables farmers are better able to ble to maximize the genetic potential which exists in Trinidad and Tobamaximize the genetic potential which exists in Trinidad and Tobago.go.

Trinidad is regarded as the birthplace of the Trinitario Trinidad is regarded as the birthplace of the Trinitario germplasmgermplasm from from which the widely distributed Imperial College Selections (ICS) hwhich the widely distributed Imperial College Selections (ICS) have been ave been made.made.

Trinidad and Tobago has the longest unbroken cocoa breeding progTrinidad and Tobago has the longest unbroken cocoa breeding programme ramme that spans well over 60 years. Through breeding and recurrent sthat spans well over 60 years. Through breeding and recurrent selection election conducted by the Ministry of Agriculture the genetic potential oconducted by the Ministry of Agriculture the genetic potential of the ICS f the ICS germplasmgermplasm has been optimized to produce the Trinidad Selected Hybrid has been optimized to produce the Trinidad Selected Hybrid (TSH) varieties. These are:(TSH) varieties. These are:

-- Higher yielding.Higher yielding.-- More resistant to witches broom and black pod diseasesMore resistant to witches broom and black pod diseases-- More adaptable to local soil conditions.More adaptable to local soil conditions.-- Possess a greater flavour potential.Possess a greater flavour potential.

COCOA POD OF THE ICS VARIETYCOCOA POD OF THE ICS VARIETY

COCOA POD OF THE TSH VARIETYCOCOA POD OF THE TSH VARIETY

LANDLAND--ENVIRONMENTAL SUSTAINABILITYENVIRONMENTAL SUSTAINABILITYThe farming method employed at the Prism The farming method employed at the Prism AgriAgri Estates and most local Estates and most local estates caters for efficient land utilization and maximization oestates caters for efficient land utilization and maximization of quality.f quality.

Land clearing and field layout is done to retain the natural draLand clearing and field layout is done to retain the natural drainage as inage as much as possible and some forest trees (such as immortelle much as possible and some forest trees (such as immortelle ErythrinaErythrina sppspp. . trees) act as permanent shade for the cocoa crop at a planting dtrees) act as permanent shade for the cocoa crop at a planting density of ensity of 18.3 m x 18.3 m. 18.3 m x 18.3 m.

The planting material used are the TSH varieties which are more The planting material used are the TSH varieties which are more disease disease resistant hence there is less dependence on chemical fungicides.resistant hence there is less dependence on chemical fungicides.

Planting densities used at Prism Planting densities used at Prism AgriAgri Estates are 1.8 m x 1.8 m (6ft x 6ft) Estates are 1.8 m x 1.8 m (6ft x 6ft) which reduce the prevalence of weeds and the dependence on chemiwhich reduce the prevalence of weeds and the dependence on chemical cal weed control.weed control.

A large number of small farmers either donA large number of small farmers either don’’t fertilize their fields or use a t fertilize their fields or use a mixture of unknown minerals to fertilize their fields. mixture of unknown minerals to fertilize their fields.

Prism Prism AgriAgri Estates applies 2 wellEstates applies 2 well--timed applications for both young and timed applications for both young and bearing cocoa trees at the beginning of the rainy season and abobearing cocoa trees at the beginning of the rainy season and about four to ut four to five months later . Over fertilization is not a problem.five months later . Over fertilization is not a problem.

LANDLAND--ECONOMIC SUSTAINABILITYECONOMIC SUSTAINABILITY

The TSH varieties afford a high quality with greater flavour potThe TSH varieties afford a high quality with greater flavour potential which ential which facilitates a higher market price.facilitates a higher market price.

Traditional farmers use the old planting density of 3.6 m x 3.6 Traditional farmers use the old planting density of 3.6 m x 3.6 m which m which leaves planting space for cashleaves planting space for cash--earning intercrops such as plantain, banana, earning intercrops such as plantain, banana, pigeon peas and cassava.pigeon peas and cassava.

Modern planting density of 1.8 m x 1.8 m used by Prism Modern planting density of 1.8 m x 1.8 m used by Prism AgriAgri Estates and Estates and some local farms enables a mixed farming system with plantain, bsome local farms enables a mixed farming system with plantain, banana anana and lumber trees interand lumber trees inter--cropped with cocoa trees. After 4 years of the cocoa cropped with cocoa trees. After 4 years of the cocoa lifecycle, the plantain and banana trees are removed.lifecycle, the plantain and banana trees are removed.

This system provides shade and income for the cocoa crop in the This system provides shade and income for the cocoa crop in the early early stages of development.stages of development.

The Prism The Prism AgriAgri Estates Co. Ltd. is also engaged in the rehabilitation of old Estates Co. Ltd. is also engaged in the rehabilitation of old estates and the development of new estates.estates and the development of new estates.

This initiative fuels the economic sustainability of the companyThis initiative fuels the economic sustainability of the company in years to in years to come.come.

PRISM AGRI ESTATESPRISM AGRI ESTATES’’ PLANTING SYSTEMPLANTING SYSTEM

LANDLAND-- NEGATIVE INDICATORSNEGATIVE INDICATORS

Manual labour is used for weed control which presents problems Manual labour is used for weed control which presents problems for economic sustainability in light of the high cost of local lfor economic sustainability in light of the high cost of local labour.abour.

Chemical weed control is the best alternative to manual weed Chemical weed control is the best alternative to manual weed control however, this method implicates environmental control however, this method implicates environmental sustainability as residues from the chemicals remain in the cocosustainability as residues from the chemicals remain in the cocoa a trees and the soil.trees and the soil.

This factor provides a critical crossroad for farmers as both This factor provides a critical crossroad for farmers as both methods adversely affect sustainability.methods adversely affect sustainability.

A main obstacle to economic sustainability is the lack of rural A main obstacle to economic sustainability is the lack of rural access roads which renders main amenities inaccessible to cocoa access roads which renders main amenities inaccessible to cocoa farmers.farmers.

Additionally, the new real estate revolution in Trinidad and TobAdditionally, the new real estate revolution in Trinidad and Tobago ago is threatening the expansion and new establishment of cocoa is threatening the expansion and new establishment of cocoa estates as agricultural lands are converted into housing estates as agricultural lands are converted into housing settlements.settlements.

LABOUR LABOUR –– Constraints to Economic SustainabilityConstraints to Economic Sustainability

Labour on cocoa estates can be subLabour on cocoa estates can be sub--divided into technical labour divided into technical labour and intellectual labour.and intellectual labour.

At the Prism At the Prism AgriAgri Estates and on most local estates, there is a Estates and on most local estates, there is a shortage of all labour in terms of quality and quantity.shortage of all labour in terms of quality and quantity.

Trinidad and Tobago is a victim of the Trinidad and Tobago is a victim of the ““Dutch diseaseDutch disease”” whereby whereby agricultural development is bypassed for industrial, particularlagricultural development is bypassed for industrial, particularly oil y oil and gas, development.and gas, development.

As a result, agricultural workers shy away from agricultural worAs a result, agricultural workers shy away from agricultural work k due to more lucrative alternatives in the industrial sector.due to more lucrative alternatives in the industrial sector.

Furthermore, other competition agencies such as National Furthermore, other competition agencies such as National Employment Relief Programmes, lure workers with the promise of Employment Relief Programmes, lure workers with the promise of higher wages and shorter working hours.higher wages and shorter working hours.

LABOUR LABOUR –– Constraints to Economic SustainabilityConstraints to Economic Sustainability

At the Prism At the Prism AgriAgri Estates workers are paid a daily wage which is Estates workers are paid a daily wage which is above minimum wage. On many local estates workers are paid above minimum wage. On many local estates workers are paid according to the task performed rather than a daily wage.according to the task performed rather than a daily wage.

To effectively compete with other employment entities, farmers To effectively compete with other employment entities, farmers have to increase their wage rate, however this is very difficulthave to increase their wage rate, however this is very difficult with with rising costs and constant prices.rising costs and constant prices.

With regards to intellectual labour the farming population is hiWith regards to intellectual labour the farming population is highly ghly traditional, less receptive to improved cocoa technology and lestraditional, less receptive to improved cocoa technology and less s innovative. Younger educated entrepreneurs, however, are not innovative. Younger educated entrepreneurs, however, are not interested in cocoa farming and seek employment yet again in theinterested in cocoa farming and seek employment yet again in theindustrial sector.industrial sector.

CAPITAL CAPITAL –– Economic and Environmental Economic and Environmental SustainabilitySustainability

Through the Cocoa Through the Cocoa RevitalizerRevitalizer Initiative the Ministry of Initiative the Ministry of Agriculture in conjunction with the Agricultural Agriculture in conjunction with the Agricultural Development Bank has developed credit facilities for all Development Bank has developed credit facilities for all farmers rehabilitating old estates and establishing new farmers rehabilitating old estates and establishing new estates.estates.

Other Agricultural Incentive and Support Services, such Other Agricultural Incentive and Support Services, such as monetary incentives for field rehabilitation and as monetary incentives for field rehabilitation and establishment, have also been developed by the Ministry establishment, have also been developed by the Ministry of Agriculture to assist cocoa farmers. of Agriculture to assist cocoa farmers.

CAPITAL CAPITAL –– Constraints to Economic Constraints to Economic SustainabilitySustainability

The accessibility of agricultural incentives and services, howevThe accessibility of agricultural incentives and services, however, is er, is limited in Trinidad and Tobago.limited in Trinidad and Tobago.

Acquisition of capital is still a problem for small farmers evenAcquisition of capital is still a problem for small farmers even with with the availability of new credit facilities.the availability of new credit facilities.

Rising cost of farm equipment and vehicles.Rising cost of farm equipment and vehicles.

Low availability of mechanized alternatives locally, in the cocoLow availability of mechanized alternatives locally, in the cocoa a farming system .farming system .

Most local farmers lack the knowledge with regards to quality Most local farmers lack the knowledge with regards to quality retention and post harvest equipment and processes.retention and post harvest equipment and processes.

SUMMARYSUMMARYThe Trinidad and Tobago Cocoa Industry possess key The Trinidad and Tobago Cocoa Industry possess key elements for sustainability:elements for sustainability:

1.1. High yielding, disease resistant planting material.High yielding, disease resistant planting material.

2.2. Trinitario Trinitario germplasmgermplasm which has the fine flavoured characteristic which which has the fine flavoured characteristic which commands a premium due to itcommands a premium due to it’’s distinctive taste.s distinctive taste.

3.3. Economically sustainable planting system with cash earning interEconomically sustainable planting system with cash earning inter--crops. crops.

The constraints to sustainability are:The constraints to sustainability are:

1.1. High labour cost which lowers profitability.High labour cost which lowers profitability.

2.2. Low quality of technical and intellectual labour.Low quality of technical and intellectual labour.

3.3. Weed control dilemma: Chemical weed control which is environmentWeed control dilemma: Chemical weed control which is environmentally ally unsustainable unsustainable vsvs Manual weed control which is costly.Manual weed control which is costly.

4.4. Low availability of investment capital and insufficient mechanizLow availability of investment capital and insufficient mechanization of ation of field operations.field operations.

POINTS TO CONSIDERPOINTS TO CONSIDEREDUCATION & TRAININGEDUCATION & TRAINING-- Cocoa entrepreneurs and labourers Cocoa entrepreneurs and labourers should be trained so that there is continuity in the industry anshould be trained so that there is continuity in the industry and a d a better quality of labour.better quality of labour.

QUALITY RETENTIONQUALITY RETENTION-- Farmers should seek to improve and Farmers should seek to improve and maintain quality standards in order to maintain price premiums.maintain quality standards in order to maintain price premiums.

MECHANIZATION OF FARM PROCESSESMECHANIZATION OF FARM PROCESSES-- R&D should focus on R&D should focus on mechanization of farm operations so as to reduce high dependencemechanization of farm operations so as to reduce high dependenceon costly manual labour.on costly manual labour.

GOVERNMENT SUPPORT SERVICESGOVERNMENT SUPPORT SERVICES-- The government should The government should increase the availability and accessibility of services, fundingincrease the availability and accessibility of services, funding and and credit facilities for farmers.credit facilities for farmers.

ACKNOWLEDGEMENTSACKNOWLEDGEMENTSThe ICCO for giving me this opportunity to participate in a The ICCO for giving me this opportunity to participate in a symposium as enlightening, educational and engaging as this one.symposium as enlightening, educational and engaging as this one.

The University of the West Indies Cocoa Research Unit for their The University of the West Indies Cocoa Research Unit for their contribution to research and development of the Trinidad and contribution to research and development of the Trinidad and Tobago Cocoa Industry.Tobago Cocoa Industry.

The Ministry of Agriculture for their contribution to the SustaiThe Ministry of Agriculture for their contribution to the Sustainable nable Development Initiative for the Trinidad and Tobago Cocoa IndustrDevelopment Initiative for the Trinidad and Tobago Cocoa Industry.y.

My company, Prism My company, Prism AgriAgri Estates for giving me the time to present at Estates for giving me the time to present at such an auspicious event.such an auspicious event.

THANK YOU!THANK YOU!

Photo: D. Sukha