Co-operative Cocoa Production in São Tomé and Príncipe

The introduction of co-operative cocoa production in São Tomé and Príncipe has contributed to the revival of the country’s dwindling economy in recent years. Introduced to the islands by the Portuguese in the 19th century, the plantations, known as rocas, were tended to by slaves before being transported to mainland Africa. With a climate conducive to cocoa cultivation, the islands’ economy had remained structured around its ability to export the sought-after raw product.

With its economy based around a single crop, however, São Tomé and Príncipe has been susceptible to the pitfalls associated with an over-reliance on a single commodity. A decrease in production in 1998, coupled with a fall in world cocoa prices, for example, severely weakened the country’s economy, prompting a politician to proclaim “the end of the cocoa industry in São Tomé and Príncipe”.

Introduction of co-operative cocoa production

Acting upon a request from the International Fund for Agricultural Development (IFAD), the French organic chocolate corporation Kaoka undertook an audit of the country’s cocoa industry around the turn of the millennium. The audit came back with promising feedback determining that “the rich genetic origin of São Tomé cocoa varieties could produce superior aromatic cocoa beans that would fetch higher and more stable prices than ordinary cocoa". It was also found that “traditional farming methods could be adapted easily to organic production. By combining organic production and fair trade principles, cocoa farmers could greatly boost their income."

In light of these findings, the Participatory Smallholder Agriculture and Artisanal Fisheries Development Programme (PAPAFPA), under the funding of IFAD, embarked on a three-year project involving 11 communities and 500 farmers in 2000. Under Kaoka’s supervision, local farmers were assisted to “make the transition from producing medium-quality to high-quality cocoa beans that are fermented and dried”.

Encouraged by its success, similar projects have been initiated within the country. Such initiatives have led to exponential growth in the exportation of cocoa from the islands. In 2004, for example, approximately 700 farmers were producing, and selling locally, 50 tons of cocoa beans. By 2010, the impact of the project was evident as close to 2,200 farmers were exporting 600 tons of fair trade certified cocoa. Co-operative cocoa production allowed for a more cost-effective method of production for farmers, while the certification of the cocoa as free trade has meant that it can be sold at a premium price with farmers receiving around double the price for their dry cocoa compared to the unprocessed beans they previously sold locally.

The project has been deemed to be sustainable with Andrea Serpagli, IFAD’s São Tomé and Príncipe Country Programme Manager, explaining “with a project horizon of 2015, the system of organic and fair trade cocoa production, linked in with premium-paying commercial buyers, will become self-sustaining”.

Challenges to the success of cocoa in São Tomé and Príncipe

In 2010, the exportation of cocoa accounted for 94% of the country’s total agricultural export, bringing 100 billion dobras ($5.6 billion) into the country. Although the value of cocoa exports in dobras have increased as a result of “the price and good quality of São Tomé cocoa on the foreign market”, the quantity of cocoa exported actually decreased by 14.5% between 2009 and 2010.

Whilst the introduction of co-operative cocoa production may have increased the mass and price of São Tomé and Príncipe's cocoa exports, the country is still vulnerable to the problems associated with an over-reliance on a single commodity. Reductions in suitable land for growing the plantations, coupled with an increase in the prevalence of drought in recent decades, has only increased the pressure on the success of such crops.

Realising the country’s susceptibility, President Pinto da Costa has promised to diversify the country’s economy. With previous hopes of oil wealth disappearing, the focus of this diversification is tourism. Whilst the success of such plans are not yet known, the push towards diversification rather than continued investment into an agricultural commodity may place Africa’s second smallest country on a successful path.

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