Caribbean Fine Cocoa Forum Entrepreneurial Agriculture

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Caribbean Fine Cocoa Forum

• Entrepreneurial Agriculture, Agricultural
  Entrepreneurship and Cocoa-farming Communities in
  Trinidad and Tobago and Jamaica
• Denise-Margaret Thompson, PhD
• Centre for Production Systems
• University of Trinidad Tobago

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Caribbean Fine Cocoa Forum

• Partners
• UTT
• Cocoa Board (Jamaica)
• Coffee Cocoa Board (Trinidad Tobago)
• MFPLMR Research Division (Trinidad Tobago)
• Initial Target Countries
• Belize, Grenada, Dominica, Jamaica,, St. Lucia,
  Trinidad and Tobago
• Beneficiaries
• Cocoa Farmers, Producers, and wider industry in
  Caribbean

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Caribbean Fine Cocoa Forum

• Overall Objectives
• Promote a successful, inter-disciplinary, applied
  research approach to sustainable development of
  the Caribbean Cocoa Agro-industry
• Greater income to small cocoa farmers
• Improved rural economies

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CFCF Project Aims

• To promote a successful, inter-disciplinary,
  applied research approach to sustainable
  development for Caribbean Cocoa which will lead
  to
• poverty reduction among small cocoa farmers
• greater income from crop yields, by-products and
  value-added cocoa products
• adoption and application of relevant scientific
  research through knowledge transfer techniques
• greater productivities to farmers
• added value through viable agro-products
• greater participation by farmers in production
  and post harvest management

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Caribbean Fine Cocoa Forum

• Specific Objectives
• Establish a multi-stakeholder Caribbean Cocoa
  Network (CFCF) to link key research institutions
  to Cocoa Boards, Government Ministries, Cocoa
  farming communities, Cocoa Processers
• Successfully deliver applied research
  applications into the cocoa industry sector
• Conduct focus groups with beneficiaries and
  stakeholders!

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CFCF Focus Group Questions

•   Current circumstances, context of farmers
• Specific issues to growing and reaping cocoa
• Farmers financials
• Technology

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Caribbean Fine Cocoa Forum

• Entrepreneurial Agriculture
• crucial economic force in rural communities,
  providing consumers with
• creative and resourceful adaptation of successful
  production systems

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Caribbean Fine Cocoa Forum

• Inter-disciplinary Applied Research Approach
• Cutting-edge production and processing practices
• Solar and alternative energy drying technologies
• HACCP-based quality management systems
• GIS/GPS/Mobile telephony for disease control,
  crop production and yield,
• Discovery-based information sharing and training
• Value-added cocoa product development

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CFCF and MDGs

• Eradicating extreme poverty
• Reducing child mortality rates
• Developing global partnerships
• business and technical entrepreneurial capacity
• improved production and market-based training
• sustainable development creating wealth,
  enhancing quality of life, protecting ecosystems
  and tackling climate change

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CFCF Sustainable Farms are..

• Economically viable
• Provide a living wage for farmers and farm
  workers
• Direct marketing, cooperatives, informed
  inter-cropping
• Environmentally sound
• Promote biodiversity
• Preserve habitat
• Conserve natural resources
• Reduce dependence on fuel chemical inputs
• Socially responsible
• Contribute to community food security and
  positive quality of life

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CFCF and Entrepreneurial Agriculture

• Sources of Agricultural Innovations
• National agricultural research institutes
• International public /private applied research
  solutions partnerships for agriculture and food
  productivity (World Bank, FAO, IICA, CRU)
• Cutting edge and traditional science solutions
  for improved plant traits and crop productivity
• Process technologies to enhance nutritional
  value, shelf life and other attributes

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Entrepreneurial Agriculture contd

• Foster sustainable rural development
• Find alternatives to commodity production
• New value-added products
• New high value markets
• New non-food uses of agricultural products
• Mandate Assist new venture creation

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MSU FRAMEWORK FOR NEW VENTURE CREATION
Policy Environment
Innovative Idea

• Test of Potential
• Prove potential
• Create initial prospectus to
• seek resources

• Test of
• Feasibility
• Prove feasibility
• Prepare for implementation
• Gather resources

Venture Concept
New Venture
Entrepreneur
Market Opportunity

• Resources III
• Prop., Plant Eqmt
• Personnel
• Management
• Buyers
• Suppliers
• Advisors/Partners
• Full Debt Equity

• Resources I
• Potential Info (general market, process, org.,
  etc.)
• Sweat Equity

• Resources II
• Feasibility Info (specific market, process,
  org., etc.)
• Initial Equity

Industry and Market Environment
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Caribbean Fine Cocoa Forum

• Agricultural Entrepreneur Any person who starts,
  organizes and operates a business, assuming risk
  for the sake of profit
• Agricultural Entrepreneurship The act of
  organizing /managing required inputs for a
  farming activity or agricultural business, and
  keeping financial records to determine return to
  investments.

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3 Features of the Ag. Entrepreneur

• Identification/recognition of market opportunity
  and generation of a business idea (product or
  service) to address opportunity
• Marshalling and commitment of resources in the
  face of risk to pursue opportunity
• Creation of an operating business model and
  organization to implement and exploit the
  opportunity-motivated business

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CFCF Focus Groups

• Key Activities Establish network for Forum!
• TT Grande Riviere/Toco Farmers groups
• 25 farmers May 11, 2010
• Jamaica Richmond Fermentary Farmers groups
• 11 farmers June 24, 2010
• Conduct focus groups with beneficiaries and
  stakeholders!

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CFCF Key Learnings from Jamaica

• We know their names and their stories
• Six of the eleven farmers are women
• All have been in cocoa from childhood and want to
  grow the business
• Five of eleven have had some form of business
  training 4 cocoa training, 3 agricultural
  training, 3 computer training, 3 no training of
  any kind
• Major issues of theft after sale to fermentary,
  Financing, Land title and size of holdings
  issues, Succession planning
• Children educated and long gone, but cocoa is my
  life!

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CFCF Key Learnings from TT..

• Enthusiasm aside, 25 great for discussion, but
  too large for focus group
• Excellent ground rules that any issue raised must
  pertain to cocoa farming and not politics
• Firm resolve that government MUST do more to help
  them especially in capital financing
• Zero traction on concept of operating as a
  business
• Strong suggestion for development of a model farm
  for very hilly topography in their district
• Disdain at the disconnect between those working
  in air-conditioned offices doing mathematical
  calculations and determining the reality of the
  small farmer working in the fields.

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More CFCF learnings from Trinidad

• Strong sense of alienation and neglect of this
  part of Trinidad from authorities
• Lack of trust/transparency for middle men
  operating in the industry not aware or informed
  of what they do
• Inaccessible/unavailable financing for growth and
  expansion ownership / lease and land access
  still issues of concern
• Eco-type tourism product around the cocoa with
  tourists already coming to watch turtles from
  March to September.
• Captive audiences could tour a cocoa farm
• Could market and sell a variety of cocoa value
  add products
• Possibility around Toco -Tobago tourism product
  with a transport connection to Tobago.

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So what is Entrepreneurship again ?

• (Shane and Ventakaram, 2000) the scholarly
  examination of how, by whom, and with what
  effects opportunities to create future goods and
  services are discovered, evaluated, and
  exploited.
• (Baumol, 1990) Entrepreneurs are persons who are
  ingenious and creative in finding ways that add
  to their own wealth, power and prestige.
• (Gries and Naude , 2010) Entrepreneurship the
  resource, process and state of being through and
  in which individuals utilise positive
  opportunities in the market by creating and
  growing new business firms.

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MSU FRAMEWORK FOR NEW VENTURE CREATION
Policy Environment
Innovative Idea

• Test of Potential
• Prove potential
• Create initial prospectus to
• seek resources

• Test of
• Feasibility
• Prove feasibility
• Prepare for implementation
• Gather resources

Venture Concept
New Venture
Entrepreneur
Market Opportunity

• Resources III
• Prop., Plant Eqmt
• Personnel
• Management
• Buyers
• Suppliers
• Advisors/Partners
• Full Debt Equity

• Resources I
• Potential Info (general market, process, org.,
  etc.)
• Sweat Equity

• Resources II
• Feasibility Info (specific market, process,
  org., etc.)
• Initial Equity

Industry and Market Environment
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The REAL Challenge.....

• END OF PRESENTATION

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