Investor Presentaiton
JICA
Backup
Cash crops: Yield and value addition are critical challenges in Cl
Cash Crops
Yield
Low yield across crops when
compared with historic yield and
peer average
Cashew (350% lower) 1
•
•
Cotton (62% lower) 2
•
•
Rubber (10-15% lower than
historic yield,
peak in 2000) 3
Cocoa (30-35% lower than
historic yield)4
Largely driven by:
.
Lack of inputs - high yield
seeds, fertilizers
Low farm mechanization
•
Poor farming practices
Critical challenge-
Land
Only 22% of the total agricultural
land is used for cash
crops cultivation
•
Large pockets of land are
not cultivated/ developed
due to government policies
or distributed holding
Low crop intensity as compared
to peers
Plantation of crops that have
negative environmental impact
(e.g., palm) threaten
sustainability of agri practices
and growth
Supply Chain
Inadequate farm eco-system
and infra
•
Limited presence of
contract manuf. or
guaranteed price
agreements
High cost of collection,
distribution, and
transportation to urban/
export markets
Limited financing support for
small farmers (E.g., Rubber) 5
Small farm suited storage
solutions leading to wastage
Value Addition
Limited local transformation
ecosystem
Average processing is ~
30% for cocoa, 8% for
cashew and ~ 5% for other
cash crops
• 2-5x value addition
potential lost as produce is
exported as cash crop6
Critical challenge-
1. Cashew nut yield in Côte d'Ivoire 0.38 ton/ha vs 1.36 ton/ha in peers. 2. Cotton yield in Côte d'Ivoire 0.98 ton/ha vs 1.58 ton/ha in peers 3. Rubber yield has fallen from 1.87 ton/ha in 2000 to
1.65 ton/ha in 2014 4. Cocoa yield has fallen from 0.77 ton/ha in 2000 to 0.58 ton/ha in 2014 5. Rubber plantations have significant upfront cost of US$500-1,000/ha 6. Value addition potential has
been calculated as difference between export price of cocoa beans and export price of processed cocoa products like cocoa butter, chocolates, etc.
Note: Côte d'Ivoire peer nations are small far,, developing countries
Source: FAOSTAT, press search, Agri reports
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