Overview of the conservation need and opportunity

Cocoa is vital to Côte d’Ivoire and Ghana, contributing 20% and 9% of GDP, respectively. Smallholders produce two-thirds of the world’s cocoa but face challenges such as poverty, child labour, low productivity, and deforestation.

Climate change is shrinking suitable cocoa-growing areas, increasing pests like Cocoa Swollen Shoot Virus Disease (CSSV). Between 1988 and 2007, 2.3 million hectares of West African forests were lost to cocoa farming. By 2050, temperatures may rise by up to 2°C, further endangering cocoa production.

Increasing yields on existing farmland while reducing deforestation and enhancing climate resilience is essential. Renovation and rehabilitation (R&R) with climate-smart cocoa (CSC) practices can help sustain production while improving farmer livelihoods.

How the blueprint contributes to conservation goals

R&R involves replacing old trees (renovation) or improving existing stock (rehabilitation) through grafting, pruning, and better farm management. These practices can more than double yields from 400-600 kg to 1,000-1,500 kg per hectare.

Conservation benefits include restoring soil health, improving water retention, reducing fertiliser use, and promoting reforestation with shade trees. Intensifying yields on existing land reduces the need for expansion into forests.

The adoption of R&R requires technical assistance, including training in best farm management practices, financial planning, and soil analysis. Cocoa operators, cooperatives, and buyers can help facilitate these services.

The business model

The model provides farmers with financial and technical support, including improved planting materials, fertilisers, agrochemicals, and credit for farm investments.

R&R financing addresses the “valley of death” period, where high initial costs and delayed financial returns prevent smallholders from investing in their farms. Without intervention, declining yields continue to impact farmer incomes.

Farmers repay loans through deductions from cocoa sales, managed by operators who also generate revenue from cocoa sourcing. The model relies on strong governance, secure land tenure, and minimum price regulations.

Prioritisation should be given to young farmers and those in areas with long-term cocoa viability. Farm segmentation based on size, age of trees, and entrepreneurial potential can help ensure the most effective allocation of resources.

The investment model

The financing structure blends public and private capital, combining grants for capacity building with debt for farm investments. Due to cocoa’s long production cycle, financing requires a 7-15 year commitment.

Ghana requires around USD 400 million and Côte d’Ivoire USD 480 million over 15 years to finance 30% of smallholder cocoa farms. A project supporting 10,000 farmers over 28,000 hectares needs approximately USD 22 million over the same period.

Three intervention models are outlined: full replanting for CSSV-affected farms (10% of total farms), partial replanting and rehabilitation for farms with trees over 15 years old (36%), and rehabilitation-focused approaches for younger tree farms (54%). IRRs range from 16% to 45%, depending on farm conditions.

Risk mitigation measures include guarantee facilities, climate risk insurance, and off-take agreements to stabilise cocoa prices. A revolving fund structure could reinvest repayments into new loans, ensuring long-term sustainability.

The model is scalable and replicable beyond cocoa, with potential applications in coffee and palm oil sectors. Similar financing structures in the coffee industry confirm the feasibility of this approach for smallholder agriculture.

By adopting these models, the cocoa sector can achieve higher productivity, financial sustainability, and conservation benefits while improving smallholder livelihoods.