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Division „Agriculture, Fisheries and Food“ 
Sector Project â€žFood, People & Biodiversity” 

Value Chains for the Conservation of
Biological Diversity for Food and Agriculture 

Potatoes in the Andes, Ethiopian Coffee, Argan Oil from Morocco and 
Grasscutters in West Africa 

Global

Facilitation

Unit

for Underutilized 

Species

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Publishers:  

Deutsche Gesellschaft fĂŒr Technische Zusammenarbeit (GTZ) GmbH 
Dag-Hammarskjöld-Weg 1-5,  
65760 Eschborn, Germany 
Internet:

http://www.gtz.de

Division „Agriculture, Fisheries and Food“ 
Sector Project „Food, People & Biodiversity 
annette.lossau-von@gtz.de

Global Facilitation Unit for Underutilized Species (GFU) 
Via dei Tre Denari, 472a, 00057 Maccarese, Rome, Italy 
Internet:

http://www.underutilized-species.org

Thanks to the following for expert contributions: 
Elmar Dimpl, Surendra Kotecha, Ulrich Röttger,  
Carsten Schmitz-Hoffmann, Andreas Springer-Heinze, Rita Weidinger 

Concept and Steering:  
Annette von Lossau (GTZ) and Irmgard Hoeschle-Zeledon (GFU) 

Authors:
Dieter Nill, Elke Böhnert 

Photos:
GTZ, E. Böhnert 

August 2006 

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Contents

Contents

0

SUMMARY.............................................................................................................V

1

GENERAL CONTEXT............................................................................................ 1

2

POTATO DIVERSITY IN THE ANDES .................................................................. 2

2.1

Potatoes in Context ....................................................................................................2

2.2

Functions and Actors in the Potato Production and Processing Value Chain............5

2.3

Support Measures and Findings in the Area of Potato Production  

and Processing ...........................................................................................................8

2.4

Results and Impact of Support Measures ................................................................13

2.5

Suitability of Promoting Potato Production in Terms of Development  

Cooperation Objectives ............................................................................................17

3

CONSERVATION OF ARABICA COFFEE DIVERSITY IN ETHIOPIA............... 20

3.1

Coffee in Context ......................................................................................................20

3.2

Functions and Actors in the Coffee Value Chain......................................................23

3.3

Support Measures and Findings in the Area of Coffee Production in Ethiopia ........28

3.4

Results and Impact of Support Measures in Coffee Production ..............................31

3.5

Suitability of Promoting Coffee in Terms of Development  

Cooperation Objectives ............................................................................................35

4

ARGAN OIL PRODUCTION IN MOROCCO ....................................................... 37

4.1

Argan Oil in Context..................................................................................................37

4.2

Functions and Actors in the Argan Oil Value Chain .................................................39

4.2.1

Value Chain: Hand-Pressed Argan Oil..................................................................39

4.2.2

Value Chain: Mechanically-Pressed Argan Oil .....................................................43

4.3

Support Measures and Findings in Argan Oil Production ........................................46

4.4

Results and Impact of Support Measures in Argan Oil Production ..........................50

4.5

Suitability of Argan Oil Production in Terms of Development  

Cooperation Objectives ............................................................................................53

5

GRASSCUTTER FARMING IN WEST AFRICA.................................................. 56

5.1

Grasscutters in Context ............................................................................................56

5.2

Functions and Actors in the Grasscutter Value Chain..............................................57

5.3

Support Measures and Findings in the Area of Grasscutter Production ..................60

5.4

Results and Impact of Support Measures in Grasscutter Production ......................62

5.5

Suitability of Grasscutter Production in Terms of Development Cooperation 

Objectives .................................................................................................................65

6

CHARACTERISTICS OF VALUE CHAINS AND THEIR SUITABILITY  
FOR DEVELOPMENT COOPERATION SUPPORT MEASURES ...................... 67

7

BIBLIOGRAPHY.................................................................................................. 73

7.1

Potato........................................................................................................................73

7.2

Coffee .......................................................................................................................75

7.3

Argan Tree................................................................................................................76

7.4

Grasscutters .............................................................................................................77

i

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Contents

Overview of Diagrams 

Fig. 1: Value Chain for Fresh Potatoes in Peru .............................................................. 5

Fig. 2: Value Chain: Potatoes for Preparation as Chuño and Tunta............................... 6

Fig. 3: Value Chain: Potatoes for Industrial Processing ................................................. 7

Fig. 4: Impact Pathway: Potatoes in Peru..................................................................... 14

Fig. 5: Remaining Forests in Ethiopia........................................................................... 21

Fig. 6: Value Chain: Coffee in Ethiopia......................................................................... 24

Fig. 7: Distribution of the Coffee Price amongst the Actors in the Value Chain............ 28

Fig. 8: Impact Pathway: Coffee in Ethiopia................................................................... 32

Fig. 9: Development of Fair Trade and World Market Prices for  

Coffee 1992 - 2005 ............................................................................................ 34

Fig. 10: Distribution of the Argan Tree in Morocco ....................................................... 38

Fig. 11: Value Chain: Hand-Pressed Argan Oil in Morocco.......................................... 41

Fig. 12: Value Chain: Mechanically-Pressed Argan Oil in Morocco ............................. 44

Fig. 13: Value Chain: Argan Oil in Morocco.................................................................. 52

Fig. 14: Value Chain: Grasscutter Production in West Africa ....................................... 58

Fig. 15: Value Chain: Grasscutter Production in West Africa ....................................... 63

ii

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Contents

Overview of Tables 

Table 1: World Production of Coffee and the Main Producing  

Countries by Region........................................................................................22

Table 2: Fair Trade Coffee Turnover 1998 – 2003........................................................29

Table 3: Sale Prices along the Value Chain..................................................................33

Table 4: Characteristics of the Value Chains ................................................................70

iii

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List of Abbreviations 

List of Abbreviations 

4C

Common Code for the Coffee Community 

ADL

Association de DĂ©veloppement Local 

ADS

Agence de DĂ©veloppement Social 

ANCA

Association Nationale des CoopĂ©ratives d’Arganeraie 

AOC

Appellation d’Origine ContrĂŽlĂ©e 

AOP

Appellation d’Origine ProtĂ©gĂ©e 

CBD

Convention on Biological Diversity 

CCTA

Coordinadora de Ciencia y TecnologĂ­a en los Andes 

CESA

Centro de Servicios Agropecuarios 

CGIAR

Consultative Group on International Agricultural Research 

CIP

Centro Internacional de la Papa (International Potato Centre) 

CNDA

Centre National de DĂ©veloppement et d’AlphabĂ©tisation 

Dhs Dirham 
DPVCTRF 

Direction de la Protection des VĂ©gĂ©taux, des ContrĂŽles 
Techniques et de la RĂ©pression des Fraudes 

EACCE

Etablissement Autonome de ContrĂŽle et de Coordination des 
Exportations 

EAFCA 

East African Fine Coffees Association 

EC

EuropĂ€ische Kommission 

EEF

EuropĂ€ischer Entwicklungsfonds 

EU

EuropĂ€ische Kommission 

EUREPGAP

Euro-Retailer Produce Working Group Good Agricultural 
Practices  

FFS

Farmer Field Schools 

GBPF

Guide de Bonnes Pratiques de Fabrication 

GEF

Global Environment Facility 

GIE

Groupement d’IntĂ©rĂȘt Economique  

GTZ

Agence Allemande de CoopĂ©ration Technique 

HACCP

Hazard Analysis and Critical Control Point 

IFPRI

International Food Policy Research Institute 

IG

Indication GĂ©ographique 

IIAP

Instituto de Investigaciones de la AmazonĂ­a Peruana 

IIED

International Institute for Environment and Development 

ILO

International Labour Organisation 

INAO

Institut National des Appellations d’Origine 

INIA

Instituto Nacional de InvestigaciĂłn Agraria 

ITPGRFA

International Treaty for Plant Genetic Resources for Food and 
Agriculture

MACAB

Marketing Approach to Conserve Agricultural Biodiversity 

NRO

Nichtregierungsorganisation 

NM

Norme Marocaine 

ODCO

Office de DĂ©veloppement des CoopĂ©ratives 

OMPIC

Office Marocain de la PropriĂ©tĂ© Industrielle et Commerciale 

PAN LCD 

Programme d’Appui Ă  la Mise en Ouvre du Plan National de la 
Lutte Contre la DĂ©sertification 

PCDA

Projet de Conservation et de DĂ©veloppement de l’Arganeraie 

PRATEC

Proyecto Andino de TecnologĂ­as Campesinas 

RBA

RĂ©serve de BiosphĂšre de l’Arganeraie 

SECO

Secrétariat d'Etat à l'Economie

SNIMA

Service de Normalisation Industrielle Marocaine (MIC) 

UCFA

Union des CoopĂ©ratives des Femmes de l’Arganeraie 

UNDP

United Nations Development Programme 

iv

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

0 Summary 

Value chains describe the work processes and actors involved in the 

production, processing, trade and end consumption of a product. In terms of 
development cooperation they offer various opportunities to improve the living and 
production conditions of the people involved and to conserve biological diversity for 
food and agriculture. Their suitability varies in terms of measures for reducing poverty 
and conserving biodiversity. There are, for example, differences in the type of social 
groups involved, access to the value chain and the distribution of power within the 
chains. The present study examines the value chains of the potato in its area of origin, 
the Andes; Arabica coffee in Ethiopia; argan oil in Morocco; and grasscutter farming in 
West Africa. 

In the South American Andes around 4,000 varieties of potato are cultivated 

mainly by small, rural producers in marginal areas. These potato varieties contain a 
wide range of genetic properties which are relevant for current and future breeding 
purposes. Three sub-chains were identified within the potato value chain: the 
production of potatoes for immediate fresh consumption; the cultivation of potatoes for 
the manufacture of traditional products (

chuño, tunta

); and potato production for 

industrial processing (chips, crisps). Whilst all three sub-chains can be used to improve 
income, only the first two make any noteworthy contribution towards the conservation 
of biological diversity and are specifically suitable for small farmers. Only a few 
varieties of potato are suitable for industrial processing and the requirements with 
regard to quality, volume and contractual obligations mean that cultivation is primarily 
suitable for large and medium-sized farmers. With regard to the production of 
traditional products, as well as some completely new ones, on the other hand, there 
are several dozen varieties of potato which may be used, whereby small farmers are 
specifically suitable as suppliers. The greatest variety may be seen in the local markets 
for immediate consumption. 

The centre of origin of Arabica coffee is Ethiopia, where there are several 

hundred varieties in existence. In Ethiopia, Arabica is produced from wild stock in forest 
systems or in semi-forest, garden or plantation systems. Most production comes from 
small farmers. There are numerous small farmers ranged against only a few 
international buyers in the value chain and, since the abolition of coffee quotas, prices 
have now hit rock bottom following a high. Support measures in Ethiopia since the 
1970s initially focused on the breeding of CBD-resistant varieties, the improvement of 
access to the producers (roads) and the development of washing stations. Current 
measures aim at the conservation of biodiversity, increasing quality, reducing costs and 
promoting marketing. To achieve this, the provision of technical advice to the farmers 
has been improved, tree nurseries are being developed, coffee forests protected and 
marketing promoted. The latter also includes various certification initiatives (Fair Trade, 
Rainforest Alliance, Utz Kapeh), which use the uniqueness of Ethiopian Arabica and 
adherence to social and ecological standards to achieve higher prices. The 4C initiative 
is a new mainstream attempt at improving the value chain, which brings together as 
many actors in the value chain as possible, in order to develop a common concept 
which is in the mutual interests of producers, traders, processors and retail sellers. 
Since it is the small farmers who cultivate the variety of coffee types and who form the 
vast majority of Ethiopian coffee producers, measures which support these producers 
are relevant to both poverty reduction and the conservation of biodiversity. 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Argan oil is pressed from the nuts contained in the fruit of the argan tree. It is 

traditionally used in food and cosmetics. The argan tree grows in only a few areas of 
Morocco, most notably the Arganeraie, and the tree population is being reduced 
through over-aging and deforestation. Two sub-chains have been identified in the 
argan oil value chain: (i) hand-pressed and (ii) mechanically-pressed oil. Both chains 
generate additional income from the production of argan oil, whereby interest is created 
in the conservation of existing populations, and the establishment of new plantations. 
However, for the production of mechanically-pressed oil, jobs and thus part of the 
profit, are transferred to urban areas and the rural regions are left only with the nut 
production. With regard to hand-pressed argan oil, on the other hand, both the nut 
harvest and the processing take place in rural areas. As such, measures to promote 
hand-pressed oil production contribute more directly to reducing poverty. Measures 
already implemented included training the Berber women involved in production and 
processing, and helping them to organise themselves; the planting of new plantations; 
and improving the quality of the oil production. It is hoped that through certification and 
partnership with international buyers, higher prices may be achieved. By means of a 
framework plan, the Arganeraie has been recognised as a UNESCO biosphere 
reserve.

Grasscutters live wild in the savanna and forest areas of Western and Central 

Africa. Because of the pressure of hunting and the spread of pasture and human 
settlement, the wild population is in decline. To reduce pressure on the wild population 
and to avail of the animal's high economic potential, the suitability of these animals for 
domestic production has been continuously improved since the 1980s by means of 
systematic breeding and farming experiments. With the support of various donors, 
grasscutter farming has meanwhile become widespread in Benin and Ghana. It can be 
practised both in urban and rural areas after introductory training and start-up 
investment. For particularly poor households, however, access is only possible if the 
costs of training and initial expenses are borne by a third party. Because of the huge 
demand for grasscutter meat and high prices, grasscutter farming is very profitable. 
Whether farming will achieve a stabilisation of the wild population remains to be seen. 

The following measures have been successfully implemented in several of the 

value chains examined: 

Ÿ

the training of producers and their organisation into production and marketing 
associations; 

Ÿ

cooperation with research institutes, at least at the outset; 

Ÿ

improved harmonisation of supply and demand; the promotion of marketing 
measures and quality by means of certification; the development of alternative 
products and increased efficiency; 

Ÿ

the improvement of regulatory and standards frameworks (reduction of legal 
obstacles, introduction of technical standards, analytical procedures, 
statistics, market information); 

Ÿ

parallel measures for the conservation of genetic diversity both 

in situ

 and 

ex

situ

;

The suitability of value chains for achieving the aims of development 

cooperation, in particular poverty reduction and the conservation of biodiversity, 
depends on various properties such as: 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Ÿ

the extension of the value chain to merely local and national level or, 
additionally, to international level; 

Ÿ

the breakdown of the value chain into sub-chains with varying effects on 
poverty reduction and biodiversity; 

Ÿ

distribution of power within the value chain and the willingness of those 
involved to reconcile their various interests; 

Ÿ

the number and composition of those involved (poor households, men-
women) and their access to the value chain (investments, know how); 

Ÿ

the direct contribution to the conservation of biological diversity. 

The following table provides a summary overview of the properties of the four 

value chains examined. 

Criterion

Potato

Coffee 

Argan Tree 

Grasscutter 

General Criteria

Geographical extent 
of the value chain 

local, national, 

regional 

national, 

international 

local, national, 

international 

local, national, 

regional 

Breakdown of value 
chain into sub-chains 

high medium 

medium low 

Value chain driven by 

demand 

demand 

demand 

supply 

Cultural roots 

strong

strong

strong

none 

Use of traditional 
knowledge 

+++

+++

+++

-

Number of actors in 
the chain on the 
production side 

+++

+++

++

+

Number of actors in 
the chain on the buyer 
side

Consumers:+++ 
Industry:         + 

Roasters:         + 
Consumers: +++ 

Processors:      + 
Consumers:  + 

+++

Proportion of female 
beneficiaries 

+

+

+++

-

Economic Criteria

Income enhancement 
potential 

+

++

+

+++

Initial investment 
required by producers 

-

+

+

++

Ecological Criteria

Biological diversity 
affected

approx. 4,000 

varieties

1 species with 

several hundred 

varieties

1 species with a 

few varieties 

2 species (T. 

swinderianus, T. 

gregorianus) 

Difficulty of 
conservation in gene 
banks

+++

+++

+

+++

vii

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

1 General 

Context 

Value chains (commodity chains) describe the organisational and institutional 

networks formed with regard to a specific product and the local, national and 
international actors involved. There are interfaces within a value chain where intensive 
labour and production processes take place, creating surpluses and profits

1

. The 

allocation of financial, material and human resources along the value chains and 
exchange at the individual interfaces are largely determined by the value chain's 
decision-makers. The distribution and implementation of decision-making power along 
the value chain is described as governance, the quality of which also depends on the 
transfer of information and knowledge. Thus the main buyers can promote the abilities 
and know how of their suppliers to a greater or lesser degree and influence their 
performance.

In general, one may differentiate between producer-driven and demand-driven 

value chains. A typical producer-driven chain would be capital and technology-intensive 
car production, which is carried out by large, integrated companies. Land and forestry 
products, such as coffee and wood, usually belong to the demand-driven chains, in 
which large trade and distribution chains represent the buyers for a wide number of 
more or less organised (small) producers. 

The best way to preserve naturally occurring plant and animal species and 

those sub-species, types and races arising out of environmental conditions and human 
intervention, used, or potentially usable by humans, is to create and maintain a market 
value for them. As such, value chains can also be used for the conservation of genetic 
diversity in agriculture and thus contribute to guarantee and improve both food security 
and the raw material basis of current and future generations. In terms of evaluating 
individual value chains it is important to know the interfaces occurring along the chain, 
which resources need to be used, what surpluses and profits can be created and which 
power structures control the value chain. With these facts it is possible to determine 
which support measures are most suitable and where they should be applied for 
maximum effect. 

The present study describes and compares the value chains of four branches of 

agro-industry, which are making an important contribution to the conservation of 
genetic diversity for food and agriculture. The production, marketing and further 
processing of (i) potato types in the Andes, (ii) Arabica coffee in its original homeland of 
Ethiopia, (iii) argan oil production in Morocco and (iv) the rearing of grasscutters in 
West Africa were examined. In order to draw conclusions which are valid across the 
board, examples were chosen from various regions (Maghreb, East and West Africa, 
South America), from agriculture and animal farming and with various uses: coffee as 
cash crop and luxury article; argan oil as an industrial raw material; potatoes and 
grasscutters as foodstuffs. The analysis was carried out on the basis of available 
project-based and general literature and was fine-tuned and enhanced through 
discussions with experts and those involved in the various areas.

2

                                                

1

   Taylor (2004), P. 130 

2

   see Imprint 

1

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Potato Diversity in the Andes 

2.1  Potatoes in Context 

An unusual demonstration took place in May 2005 on the streets of Huancayo, 

a town in the Peruvian highlands. Farmers and students, as well as the managers and 
staff of both 

cantinas

 and upmarket restaurants were demonstrating against the use of 

Dutch and Canadian potatoes in the mushrooming fast food sector. It was said that the 
many native types of potato were hardly being used in these restaurants and the 
farmers of Peru, one of the potato's home countries, were having difficulty disposing of 
their produce, being forced to sell at prices which barely covered their costs.

3

 This 

demonstration showed two things: 

On the one hand, that there was a discrepancy between local supply and 

demand and, on the other, that the public at large had recognised that the diversity of 
indigenous potato varieties was a biological and cultural heritage which should be 
conserved and better used in economic terms. 

The potato originated in the Andes of South America. It is one of the few 

important cultivated crops which can tolerate the difficult climatic conditions of the 
Andean highlands, with wide ranges of temperature, regular frost, intense sun and 
regular periods of drought. After the discovery of America, the potato quickly spread to 
the rest of the world and, especially in Europe and Asia, became one of the most 
important sources of food. Today in the potato's indigenous region, a unique range of 
varieties is cultivated and used. Globally speaking, however, Latin American potato 
production plays only a minor role. Worldwide, something over 300 million tons of 
potatoes are produced every year. The world's leading producer is China with 66 
million tons; in Germany around 11 million tons are produced whilst in Peru the figure is 
around 2.5 million tons. Colombia and Argentina have similar levels of production. 

The Potato Market 

Although potato consumption is considerably higher in the industrialised 

countries than in the developing countries, European potato production has declined 
slightly while it has been greatly increasing since the 1990s in Asia, Africa and Latin 
America and has gained importance as a source of food and income. According to 
IFPRI and CIP forecasts, the relative importance of the potato as a foodstuff in the 
developing countries will at least remain stable, but will more probably continue to 
increase. Whilst in the 1960s less than 30 million tons were produced in the developing 
countries, production has now risen to over 100 million tons whereby the growth rate 
has accelerated in the last decade, to clearly overtake other important foodstuffs such 
as maize, bananas, wheat and rice. 

Potatoes have a relatively high water content and are quite heavy when 

measured against their value. They are therefore mainly traded in a geographically 
small area. As such, import and export are only relevant in terms of overcoming 
seasonal shortages, making seed available or, with regard to specific varieties and 

                                                

3

   Niezen (2005) 

2

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

qualities, for consumption as illustrated by the fast food chain example mentioned 
above.

The potato is much more important as an internationally traded commodity in 

Europe than in Latin America. Whilst the Netherlands and Germany each export about 
1.5 million tons of potatoes per annum and import a similar quantity, Peru exports only 
3,500 tons, Colombia 28,000 tons and Argentina 16,000 tons. Although frozen potatoes 
and/or potato products with a value of US$ 2.7 million were imported into Peru in 2004, 
potato imports represent "a symbolic rather than a real" proportion of the market

4

 and 

are also very low in the neighbouring countries. In Bolivia, the maximum distance 
potatoes are transported rarely exceeds 250 km.

5

In Latin America, increasing production is largely absorbed by the local markets, 

whose potato turnover is steadily rising. Bolivia, for example, is 99.7% self-sufficient 
with regard to potato supply.

6

 Unlike the unstoppable rise in potato production in Asia, 

the increase in production in the Andean countries has been declining again in recent 
years, as potato cultivation has been continually pushed out to marginal locations with 
lower productivity.

7

Biology and Diversity in the Andes 

It is estimated that there are around 4,000 varieties of potato worldwide, of 

which over 2,000 are cultivated in the Peruvian Andes alone. They are red, blue or 
black, occasionally with yellowish or white flesh and of various shapes. 

Well over 90% of the potatoes produced worldwide, including the varieties 

known in Europe, no longer have much in common with the original properties of the 
potatoes cultivated in the Andes. Most of the potatoes used today would no longer be 
able to tolerate the weak soil and difficult climate. Instead, they have properties which 
make them ideally suitable for the production of important, standard goods such as 
potato starch, chips or crisps. 

On the other hand, most of the varieties of potato still used for traditional 

purposes in the Andes, which flourish despite the difficult conditions at an altitude of 
between 3,500 and 4,200 metres, are bitter and cannot be eaten without processing. 
They have been selected by the indigenous farmers over centuries for their taste, 
texture, shape and colour and can be cultivated with minimal plant protection. 

The cultivation of these varieties has declined noticeably in recent decades and 

the farmers are increasingly betting on "yellow" potato varieties with which consumers 
are familiar and which are easier to market. The worldwide demand for potato products 
is therefore being covered by an increasingly small number of varieties whereby many 
of the older varieties are threatened by extinction. Already today, some can only be 
found in gene banks. 

                                                

4

   Niezen (2005) 

5

   Valdivia (2003) 

6

   Valdivia (2003) 

7

   CIP 

3

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Types of Processing 

The potato is eaten whole directly by the consumer and is also processed 

industrially. Traditionally, in the home, the whole tuber is used or is turned into mashed 
potato, used in soups, fried, etc. In Germany, however, about 50% of the potato 
harvest is already processed when it comes to the consumer's table.

8

In the USA, only about one-third is sold fresh, whilst 33% comes on to the 

market in the shape of frozen potato products. A further 22% is processed into crisps or 
dried products, 9% is used by the farms themselves and 5% is used for animal fodder 
or as seed potato.

9

Although the majority of the Latin American population buys its potatoes in the 

form of fresh tubers, or in the traditionally preserved forms of 

chuño

 or 

tunta

 in Peru 

and Bolivia too, however, consumption of processed convenience and fast food 
products is continuously increasing. Owing to a growing urban population and greater 
participation of women in working life, there is a trend towards increased consumption 
of products such as potato crisps, ready-made chips and packet products. In Colombia, 
around 12% of the potato crop is industrially processed, mainly into crisps or ready-
made chips. This trend is linked with the specialisation of increasing industrial 
processing and a growing trade in potatoes and potato products. 

Quality Requirements for the Potato 

Depending on the end product, potato quality requirements vary greatly. Whilst 

households which use the entire tuber may look for a broad palette of characteristics, 
the processing industry has very specific requirements with regard to quality, which has 
a major impact on prices. 

Amongst the most important external features of quality are size, shape, skin 

thickness and depth of the eyes. These characteristics have a bearing on the effort 
required during the mechanical peeling process and - especially with regard to the 
production of potato crisps - on the size and shape of the end product. 

Water and sugar content are amongst the most important internal quality 

characteristics. A low water content means a high starch yield. Sugar content and 
composition are responsible for the browning and taste of deep-fried and fried 
products. High glucose, fructose and saccharose content leads to a dark-brown to 
black end product with a bitter taste, and potatoes with these features are therefore 
rejected by the processor and the consumer. 

These quality features depend on both variety and conditions of cultivation. 

Thus in Colombia, of the 400 varieties examined, only 5 were found acceptable by the 
processing industry for the manufacture of fried products. For these 5 varieties in turn, 
very specific cultivation criteria have to be fulfilled before they are deemed acceptable. 
Thus the texture of the soil is important for the development of suitable shapes. During 
the vegetation period very low temperatures should be avoided as these lead to 
increased sugar values, rendering the tubers unsuitable for processing. 

                                                

8

   CMA 

9

   AMRC 

4

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

2.2  Functions and Actors in the Potato Production and 

Processing Value Chain 

As described above, a wide range of end products is manufactured from the 

potato, each having very specific requirements of the commodity itself and involving a 
variety of different players. As such, various value chains, with quite distinct 
differences, exist alongside each other. 

In order to make a systematic examination easier, three different typical value 

chains are described below. 

Value Chain: Potatoes for Fresh Consumption as Loose Goods 

In this value chain the potatoes are produced by the farmers for direct, fresh 

consumption by the end consumer (Fig. 1). The potatoes produced are collected by the 
buyers who travel to the rural markets, and are sold through intermediate traders or 
directly to wholesalers and retailers. They in turn sell the potatoes to the consumers, 
who may be households, restaurants, 

cantinas

 or small cookshops. Ahead of 

production, there are seed, fertiliser and pesticide suppliers and a few other resources. 
Between production and end consumer, there may be simple cleaning and sorting 
processes, which may be carried out by farmers, the buyers or the traders. 

Fig. 1: Value Chain for Fresh Potatoes in Peru 

Specific

Inputs

Agricultural 

Production

Processing

Marketing

Consumption

Actors

-

Researchers

-

Extensionists

-

Farm suppliers 
and services

-

Banks

-

Small farmers

-

Production 
communities

-

Rural farms and 
farming 
communities

-

Producers

-

Buyers

-

Retail trade

-

Rural and
urban 
consumers

-

Supply of seed 
potatoes

-

Supply of 
fertiliser and 
pesticides

-

Advice, Training 
& Organisation

-

Propagation of 
seed

-

Production of 
potatoes

-

Storage

-

Cleaning

-

Buying up, 
Collection

-

Transport

-

Sale to the end 
consumer

- Self-

sufficiency

- Fresh 

consumption

Functions

Specific

Inputs

Agricultural 

Production

Processing

Marketing

Consumption

Actors

-

Researchers

-

Extensionists

-

Farm suppliers 
and services

-

Banks

-

Small farmers

-

Production 
communities

-

Rural farms and 
farming 
communities

-

Producers

-

Buyers

-

Retail trade

-

Rural and
urban 
consumers

-

Supply of seed 
potatoes

-

Supply of 
fertiliser and 
pesticides

-

Advice, Training 
& Organisation

-

Propagation of 
seed

-

Production of 
potatoes

-

Storage

-

Cleaning

-

Buying up, 
Collection

-

Transport

-

Sale to the end 
consumer

- Self-

sufficiency

- Fresh 

consumption

Functions

Individual links of this chain can be bypassed. For example, the farmers may 

themselves produce resources such as seed or organic fertiliser. Parts of the marketing 
process may also be bypassed by means of direct trading between retailers and 
producers. There is no noteworthy processing involved on the way to the end 
consumer.

5

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Value Chain: Traditional Processing into Chuña and Tunta 

Most varieties of potato which have adapted to the extreme climatic conditions 

of the Andean highlands and are traditionally grown there by the farmers, are bitter 
potatoes. Not only because of their unpleasant taste, but also because they contain 
indigestible substances, they have to be treated by freezing and drying, before they are 
suitable for consumption (Fig. 2). For this reason, the highland farmers have for 
centuries been using the night frosts and strong sun to treat the potatoes. To produce 

Chuño

, the bitter potatoes are frozen by the frosts for several nights and are then dried 

in the sun during the day. The manufacturing process for 

tunta

, which is a very similar 

product, differs in that some of the bitter elements may be better eliminated by 
occasional wetting of the potato. The end products are not only easily digestible but 
remain edible for months or even years. 

Fig. 2: Value Chain: Potatoes for Preparation as Chuño and Tunta 

Specific

Inputs

Agricultural 

Production

Processing

Marketing

Consumption

Actors

-

Researchers

-

Extensionists

-

Farm suppliers 
and services

-

Banks

-

Small  farmers

-

Production 
communities

-

Rural farms and 
farming 
communities

-

Producers

-

Buyers

-

Retailers

-

Rural and
urban 
consumers

- Supply of seed 

potatoes

- Supply of fertiliser 

and pesticides

- Advice, Training & 

Organisation

- Propagation of 

seed

- Production of 

potatoes

- Storage

- Cleaning
- Processing into 

Chuña 

or

Tunta

(drying/wetting)

- Packaging

- Buying up, 

Collection

- Transport
- Sale to the end 

consumer

- Self-

sufficiency

- Consumption 

of 

chuña

or

tunta

Functions

Specific

Inputs

Agricultural 

Production

Processing

Marketing

Consumption

Actors

-

Researchers

-

Extensionists

-

Farm suppliers 
and services

-

Banks

-

Small  farmers

-

Production 
communities

-

Rural farms and 
farming 
communities

-

Producers

-

Buyers

-

Retailers

-

Rural and
urban 
consumers

- Supply of seed 

potatoes

- Supply of fertiliser 

and pesticides

- Advice, Training & 

Organisation

- Propagation of 

seed

- Production of 

potatoes

- Storage

- Cleaning
- Processing into 

Chuña 

or

Tunta

(drying/wetting)

- Packaging

- Buying up, 

Collection

- Transport
- Sale to the end 

consumer

- Self-

sufficiency

- Consumption 

of 

chuña

or

tunta

Functions

Both products are predominantly used for personal consumption, but as dry 

goods may be transported and handled fairly easily. Traditionally, they were used for 
bartering goods from the lowlands. A study by the 

FundaciĂłn PRIONPA

 estimates that 

in Bolivia's Altiplano region around 5,600 family-owned operations produce over 5,000 
tons of 

chuña

 and 

tunta

 with a value of about 3.3 million US$, giving each family an 

average income of approx. 550 US$. In Peru it is thought that the production volume is 
even somewhat higher. This traditional process therefore still has great significance for 
the rural population and is closely linked with the conservation of diversity in traditional 
indigenous varieties. 

6

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Value Chain: Potatoes for Processing into Potato Crisps and Chips 

As with the previous value chains, the suppliers and then the buyers (Fig. 3) 

stand between the producers and the end consumers. The suppliers and buyers sell 
the potatoes directly to the processing industry or, via intermediate traders, to smaller 
operations processing by hand, from where the goods may also go to wholesalers and 
retailers and then finally from there, to the end consumers. 

Fig. 3: Value Chain: Potatoes for Industrial Processing 

Actors

Functions

-

Supply of seed 
potatoes

-

Supply of fertiliser 
and pesticide 

-

Advice, Training and 
Organisation of 
Producers 

-

Provision of 
Equipment for 
Processors

-

Provision of Loans 

-

Researchers 

-

Extensionists 

-

Farm suppliers 

  and services 

-

Banks

-

Propagation of 
Seed

-

Production of 
Potatoes

-

Storage

-

Cleaning, peeling, 
cutting, frying, 
drying, packaging 

-

Processing of the 
dry goods into 
peeled, chilled and 
pre-fried products, 
snacks, etc. 

-

Buying-up, 
collection

-

Transport 

-

Sorting

-

Sale to end 
Consumer 

-

Sale to 
Commercial
Clients, 
Processors,
Restaurants 

-

(Import and 
Export) 

-

Self-
sufficiency in 
agricultural 
operations 

-

Consump-
tion after 
trade and 
processing  

-

Capital-intensive 
commercial
operations 

-

Small farmers 

-

Production 
communities

-

Rural farms and 
farming
communities 

-

Commercial
operations 
working by hand 

-

Industry 

-

Buyers 

-

Wholesalers 

-

Retailers 

-

(Import and 
Export) 

-

Urban 
Consumers 

-

Rural
Consumers 

Specific 

Inputs 

Agri-

cultural 

Production 

Processing 

   Marketing 

Consumption

With regard to the manufacture of pre-processed goods such as peeled, chilled 

or pre-fried products, the buyers are often restaurants, where the products will then 
undergo further processing. 

In this value chain there are several marketing and processing phases, e.g. the 

sale of the potatoes between producers and processors, followed by sale between 
processors and restaurants and between restaurants and end consumers. Processing 
steps occur between producers and processors (cleaning, sorting), with the processors 
(e.g. peeling, pre-frying) and in restaurants (end processing). 

Only a few potato varieties can be used within this value chain. However, in this 

instance "variety" does not mean a strict biological variety. Neither the households nor 
the processors can differentiate between all the different varieties. In Bolivia, for 

7

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

example, there are only 13 distinct commercial varieties. This contrasts with the 
hundreds of different potato varieties which the small farmers cultivate and are able to 
name and describe. 

The "varieties" 

Chuña

 and 

Tunta

, which cover a wide number of biological 

types, belong to the 13 commercial varieties which are suitable for the manufacture of 
the products of the same name (see chapter above). Other so-called varieties such as 
the

Holandesa desconocida

 or the 

Desconocida Maggi

 are equally not varieties in a 

biological sense but are groups which more or less resemble one particular variety or 
have specific characteristics. Alongside these, there are the truly biological varieties 
such as 

Desirée

.

10

 What determines the acceptability of the potatoes for the processors 

are how they cook and fry. Only 2% of Peru's potato production goes to industrial 
processing. A considerably larger proportion of potatoes which have only been peeled, 
cut and packaged, goes to small cookshops and restaurants. 

Value chains which tie in to international trade play almost no role and should 

therefore not be examined further. The fast food chains, who have a decisive influence 
on the global potato market are, of course, expanding in Latin America as well. 
However, contrary to public perception, all of these chains combined use only 0.5% of 
the volume produced nationally. Even if they could be persuaded to buy more of the 
national product, the effect on trade as a whole would be small. 

Potato products in the form of ready snacks are being imported as well, but in 

terms of quantity are also negligible. Nevertheless, this area presents small but 
interesting commercial opportunities for indigenous products and varieties. 

2.3  Support Measures and Findings in the Area of Potato 

Production and Processing 

In the Andes, the potato is not only one of the most important foodstuffs but, 

with its incredible range of varieties as well as its traditional processing methods and 
end products, also an important cultural asset. Therefore there are a number of 
approaches aimed at promoting potato production and conserving genetic diversity in 
the Andes region. These funding approaches are either in the individual countries or 
operate as transnational initiatives on the part of Peru, Bolivia and Equador. 

The aims of the support programmes are always 

Â

to create income for small farmers, 

Â

to promote biological and cultural diversity, 

Â

to improve the food security situation for poor sections of the population. 

To achieve these aims, there are approaches ranging from individual 

interventions to complex measures for improving the entire value chain. The following 
describes some of the participants, programmes and their various approaches. 

Parque de la Papa – the Potato Park 

In the the supposed centre of origin of the potato, in a high valley south of Pisac 

in Peru, six Quechua villages have joined together as the 

Parque de la Papa

 in order to 

jointly farm their common land of around 8,600 hectares. Their aim is to conserve the 

                                                

10

   Guido & Mamani (2000) 

8

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

landscape, their means of existence and their traditional way of life, as well as to 
resuscitate traditional rights and institutions. Around 1,200 different varieties of potato 
are named and used in this valley. A typical family farm may have up to 300 different 
varieties of potato. 

With support from the IIED 

Sustaining Local Food Systems Agrobiodiversity and 

Livelihoods Programme

 and the Rockefeller Foundation an attempt is being made not 

only to conserve this astonishingly high number of varieties, but also to reintroduce 
further varieties to the region. An agreement for the reintroduction of 206 varieties of 
potato has already been reached with the International Potato Centre (CIP) (see 
summary in the text box overleaf). These agricultural activities are backed up by 
reafforestation projects and efforts towards achieving dietary improvements. 

The six villages have acquired the status of a protected area. Through the 

development of agro-tourism and a visitor centre with potato exhibition and restaurant, 
additional jobs and income have been created. Improved storage facilities make 
marketing easier while the sale of mixed potato varieties as brand products via the 
country's biggest supermarket chain has diversified sources of income and aims to 
ensure the long-term existence of the programme. 

The "In situ" Project 

The

ConservaciĂłn In situ de los Cultivos Nativos y sus Parientes Silvestres

Project - "

In situ

" for short - has taken a similar route to the 

Parque de la Papa

. Set up 

in 2000, as an initiative of GEF and UNDP, it is being implemented by six national 
organisations: 

Â

Instituto de Investigaciones de la AmazonĂ­a Peruana (IIAP), 

Â

Instituto Nacional de InvestigaciĂłn Agraria (INIA) with 8 test stations 

Â

Proyecto Andino de TecnologĂ­as Campesinas (PRATEC) with 10 member 
organisations 

Â

Coordinadora de Ciencia y TecnologĂ­a en los Andes (CCTA) with 4 member 
organisations 

Â

AsociaciĂłn Arariwa para la PromociĂłn TĂ©cnico Cultural Andina  

Â

Centro de Servicios Agropecuarios (CESA) 

9

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Agreement on the Return, Re-establishment and Conservation of Biodiversity of the Native 

Potato and the Related Indigenous Knowledge 

between the 

AsociaciĂłn de Communidades del Parque de la Papa

 and the 

Centro internacional de la 

Papa (CIP) 

General Statement:

x

The conservation of biodiversity is of paramount importance.  

x

This agreement is based on the terms of the Convention on Biological Diversity (CBD). 

x

This agreement forms an alternative to the usual in-situ and ex-situ strategies for the 
conservation of biodiversity. 

The text of the agreement is very general and refers to resources and traditional knowledge. In the
sub-section "Alcances" the meaning is restricted to potatoes and related knowledge. 

Goals

 of the agreement are: 

x

to promote the use and the conservation of "maximum diversity", 

x

Retention of genetic resources and knowledge in the keeping of the indigenous communities 
and the prevention of the proclamation of private rights as intellectual property. 

x

To set an example in showing a way between ex-situ and in-situ strategies. 

x

To promote respect for biological resources and the rights and responsibilities of the 
indigenous communities. 

Responsibilities: 

The communities („el Parque“) undertake to: 

x

permanently make available the genetic material for distribution and use by the members. 

x

guarantee access to genetic material supplied. 

x

keep CIP informed on an ongoing basis. 

x

cooperate with regard to studies and investigations. 

CIP offers (depending on financial resources) to: 

x

make genetic material available. 

x

guarantee that plants are free of disease and pests. 

x

provide advice on the conservation, propagation and cultivation of the varieties made 
available. 

Together the two parties undertake to: 

x

conserve and propagate the varieties for the use of third parties;  

x

jointly seek financing; 

x

jointly undertake public relations exercises; 

x

mutually keep each other informed on an ongoing basis; 

x

produce progress reports and - where appropriate - make these available to CBDm, FAO or 
others;

x

fairly distribute the benefits or profits from this programme; 

x

integrate parts of this agreement or findings arising out of this agreement into possible future 
standards for communal or farming rights. 

Note: The original agreement is 9 pages long.  
(Source: http://www.grain.org/brl_files/Convenio%20CIP.pdf) 

The initiative's aim is to conserve the diversity of twelve cultivated plant species 

- including the potato. One goal is to conserve agoi-biodiversity through improved 
cultivation techniques. It is intended that agricultural organisations should be reinforced 
and awareness of the ecological, cultural and nutriphysiological values of traditional 
crops be increased. The political and legislative framework should be adjusted to 
contribute to the conservation of diversity. The marketing of traditional crops in local, 
national and international markets should be promoted. 

10

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

The Papa Andina Project 

One of the few projects which specifically considers the entire value chain and 

uses it for interventions, is the Papa Andina Project. The project looks specifically for 
bottlenecks in the value chain which can be removed by means of relevant support 
measures. In some instances, new products are developed, aimed at conserving the 
diversity of potato varieties and creating secure, more profitable or new sources of 
income for small farmers. 

The Centro Internacional de la Papa (CIP) 

The above-mentioned projects of course cooperate with the agricultural 

authorities of the respective countries and the farming organisations. However, without 
the specific know how and the contribution from the International Potato Centre (

Centro 

Internacional de la Papa - CIP)

, these approaches would not be possible. 

The

Centro Internacional de la Papa

 was established in 1971 as an 

independent scientific organisation. It is one of 16 international research and training 
centres supported by the CGIAR. 

The goals of the CIP are poverty reduction and food security through research 

and funding activities with regard to potatoes, sweet potatoes and other root and tuber 
vegetables, as well as improved management of cultivation methods in the Andes. The 
Centre's headquarters is "La Molina", close to Lima.

The CIP gene bank, from which practically all known varieties of potato can be 

obtained, is particularly important for the conservation of potato diversity. The CIP also 
conceived the 

Marketing Approach to Conserve Agricultural Biodiversity (MACAB)

11

which served as the orientation guideline for numerous promotion approaches and was 
then further fine-tuned. 

Support Approaches 

The various activities and approaches for promoting potato production in terms 

of conserving genetic diversity are once again summarised for the various projects 
below. The following chapter examines in detail the impact of individual approaches. 

Support in the Area of Public Relations and Creating Awareness 

Â

30th May has been declared the official "Day of the Potato" (

Dia de la Papa)

.

Â

Potato varieties are being registered and described in detail (inventorising), 

Â

The various ways in which land is being used are being mapped. 

Â

Agro-biodiversity fairs where the varieties are exhibited are being organised 
and cooking competitions held. 

Â

Exchange visits between farmers from different provinces are being 
organised.

Â

School gardens are being set up by the children and courses on the 
importance of biodiversity are being held at primary schools. 

                                                

11

   Bernet (2004) 

11

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Safeguarding Rights 

Â

Designation of a protected area within the framework of the 

Parque de la 

Papa

 project. 

Â

Safeguarding of farmers' rights as the owners of old varieties and of 
expertise.

Improvements in Production 

Â

Farmers are given support in organising themselves into associations and 
committees.

Â

Access to good, healthy seed is being improved. 

Â

Old, lost varieties are being made available again by the gene banks. 

Â

Seed production and marketing by the farmers themselves is being 
supported.

Â

Resistant varieties are being identified. 

Â

The provision and use of fertilisers is being improved. 

Â

Improved methods of adapted and integrated plant protection are being 
introduced.

Farmer field schools (FFS) are one method by which these measures are being 

implemented. Handbooks and advisory approaches are being developed. 

Post-Harvest Improvements in Storage and Usage 

Â

Marketing conditions are being improved and warehousing losses reduced 
through the construction of appropriate storerooms for the farmers. 

Â

Improved commercial storage and cleaning increases the market quality of 
the products. 

Improvement of Marketing; Exploration of New Marketing Potential 

Â

The identification of niche markets and forms of production where small 
farmers have a competitive edge, create specific advantages for them. 

Â

Market studies, market surveys and technology fairs improve exchange 
between the actors and those gathering and providing information. 

Â

Amalgamation of farmers into marketing organisations strengthens the 
producer's side.

Â

Networking of producers and processors through the organisation of 
workshops. 

Â

Development of new marketing channels opens up new income sources and 
reduces dependency on existing buyers. 

Â

Establishment of specialised sales points creates jobs and income. 

Â

The development of new products (multi-coloured potato crisps) diversifies 
the product range. 

Â

Improving the quality of traditional products (variety-rich selection of potatoes, 
reduction of foreign matter content, etc.). 

Â

Emphasis on the special traditional and cultural significance of individual 
varieties ("gift potatoes"). 

12

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Â

Documentation of and fresh emphasis on the particular suitability of specific 
varieties for certain end products, e.g. for traditional freeze-drying in the cold 
highlands.

Â

Simplified access to loans improves ability to plan and facilitates investment. 

The numerous support measures presented apply to various levels of the value 

chain, whereby the effects achieved are discussed in the following chapter. 

2.4  Results and Impact of Support Measures  

Visible results of the above-mentioned activities and approaches are: 

Â

an increased awareness of both the unique diversity of potato varieties and 
their endangerment.  

Â

creation of new marketing channels for the potato and development of new 
products.

Â

increase in the quality of the product and the improvement of traditional 
products by means of advances in cultivation, processing and storage. 

Â

an improved institutional and legal framework for the conservation of diversity. 

The extent to which these results have contributed to reducing poverty and 

conserving biological diversity is discussed in detail below. An overview of the cause-
effect structure is shown in Fig. 4. 

Sensitisation and Creation of Awareness 

Today, producers and consumers are much more aware of the importance of 

both diversity in potato varieties and diversity of cultivated plants in general, than they 
were a few years ago. After years of being considered outdated and uninteresting, 
traditional potato production is now recognised as essential to the conservation of 
biological diversity and as a cultural asset. National commemoration days and 
numerous press reports bear witness to this. As such, the conditions for conserving the 
diversity of traditional varieties have been improved. This awareness also facilitates the 
creation of new market openings for different varieties. The different varieties and their 
characteristics are now better known commercially. 

13

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 4: Impact Pathway: Potatoes in Peru 

Poverty 

lastingly 
reduced

Rights of Indigenous Producers Safeguarded 

By means of an agreement between six communities of the Potato Park and the 

CIP

12

 - the first of its kind in Peru - an important legal milestone was set, returning and 

securing a part of their rights and their property to the indigenous groups. Under the 

                                                

12

   Text in AsociaciĂłn Andes (2005) 

Improved

fertilisation and 

plant protection 

Improved

storage

Improved earning 

potential for 

processors 

Healthier seed 

available 

Improved marketing 

opportunities for 

certain varieties 

Improved quality 

of potatoes and 
potato products 

Productivity in 

marginal locations 

increased

Increased earning 

potential for farmers 

Farmers' access to 

diverse varieties 

improved 

Food situation 

improved 

Self-confidence of 

farmers and position 

in society 

strengthened 

Conservation of 

diversity 

strengthened (c. 

4,000 varieties) 

Earning potential in 

marginal areas 

improved 

Awareness of 
importance of 

biodiversity 

increased

Impact

New products 

developed 

Improved access to 

loans 

Producers, 

processors and 

consumers more 

aware of range of 

varieties

Varieties more 

easily available 

to farmers 

Improved

processing 

Systematic 

cataloguing of 

varieties

Results

Support Measures

Public Relations 

work 

Technical advice 
given to farmers, 

field schools, 

technical 

handbooks 

improved 

Promotion of 

regional and 
international 
exchange of 

kn

Market Studies

Development of 

new products 

Networking between 

producers and 

processors 

owledge

14

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

terms of this agreement, the Centre's gene bank returned certain varieties with all of 
their associated rights to the farmers. The agreement aims to ensure that the old potato 
varieties and the knowledge associated with them remain available to the indigenous 
population in the long term and do not become the object of private patenting as 
intellectual property rights. IIED praised the agreement because under its terms the 
gene banks were reopened and biological diversity returned to the farming 
communities.

13

Cultivation and Storage Improved 

Traditional know-how has been safeguarded and made available, through the 

systematic description and documentation of the varieties and their associated 
methods of cultivation and processing, especially by the CIP. The improvement in seed 
propagation provides better quality seed as the basis for higher production and better 
quality.

The improvements in plant protection and fertilisation allow the groups involved 

in the project to produce end products of a better quality and thus achieve higher 
prices. Improved storage also makes a contribution in that the availability of the 
potatoes and rural products (

chuño

 and 

tunta

) is extended over a longer period of time. 

This in turn improves marketing potential, guarantees a higher price and also improves 
food security in rural areas. 

Processing

It has been possible to achieve individual improvements in the rural processing 

and hand processing of potatoes. The resulting improved quality of the processed 
goods and the reduction of costs and losses has led to an improved market position for 
the producers and the processors. 

Marketing

As mentioned at the outset, there is already a supply surplus on the national 

potato market. As such almost all efforts aim at better harmonising local supply and 
demand with regard to potatoes and to potato products. General progress in improving 
earning potential has been achieved through the networking of producers with the 
processors and through the introduction of higher quality across the board. However, 
this has not always led to any conservation of biodiversity as the following examples 
demonstrate:

Â

To facilitate 

the farmers' access to high quality industrial production

, the 

farmers are supported in offering raw materials of a quality and quantity, such 
as are required by industry for the most common processed products such as 
potato starch, chips and crisps. It has already been mentioned, however, that 
this led to the cultivation of only a few varieties and the marginalisation of less 
profitable ones. 

                                                

13

   Bridges (2005) 

15

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Â

The

production of potato starch

 creates income for farmers. Peru annually 

imports up to 15,000 tons of potato starch. Assuming that 8 kg of potatoes are 
required to produce 1 kg of starch, this would correspond with demand of up 
to 120,000 tons of potatoes, i.e. around 5% of national production. As such, 
the Ministry of Agriculture has announced the development of an industry for 
the production of potato starch.

14

 It is expected, however, that if such 

production ever goes ahead, only a limited number of potato varieties will be 
used, and these will very probably be produced in favoured locations. As 
such, this industry would have barely any effect in conserving the diversity of 
potato production of the small farmers in the Andean highlands. 

Â

The manufacturers of 

potato crisps and chips

 set the highest standards with 

regard to the quality of the potato, with very narrow limits for both external 
appearance and content. However, since the industry pays high prices, the 
Papa Andina Project, for example, made considerable efforts to facilitate the 
small farmers' access to this particular market. It was indeed possible, with 
some improvements in plant protection, the organisation of the farmers and 
the creation of an institutional platform between small producers and industry, 
to create access for the farmers of several villages. The consequence, 
however, was that they were forced to focus on only two varieties of potato 
and diversity on the land declined. In addition, the bigger farmers with their 
more favourable production conditions retained the upper hand in the long-
term. For the industry, the small farmers were only of interest in terms of 
covering supply shortfalls.

15

Â

The

development of high-quality branded goods

 offers further potential. 

As described above, loose potatoes are often only available in Peru as a 
mixture of varieties. Thanks to extensive support from the CIP, the Papa 
Andina Project was able to create a brand product, whereby quality potatoes 
are now packaged in bags. The tubers are either packaged for wholesalers in 
50 kg sacks, of a single variety and with a quality guarantee or, as 

T'ika Papa

,

are sold in consumer-friendly package sizes via the country's biggest 
supermarket chain. However, only around 20 varieties of the so-called 
"sweet" potato are suitable for this particular marketing strand. It may 
therefore be promising in terms of generating income but makes no 
contribution to conserving the diversity of the bitter potato. The situation is 
similar with regard to the newly-developed instant potato mash made out of 
indigenous potatoes or the branded "Peruvian Golden Potato", which is 
exported and is slowly gaining recognition abroad. 

The long-lasting, rurally processed products, 

chuño

 and 

tunta

 too, are 

available only in varying levels of quality. It would therefore be interesting to 
introduce brands with a fixed quality standard for these dried goods, as there 
would then be a use for the numerous bitter potato varieties. The "La Llaveña" 
brand has been developed for 

Tunta

 with the support of the 

Ministerio de 

ProducciĂłn

. The Papa Andina Project also markets high quality 

chuño

and

tunta

. Marketing of these traditionally processed products is particularly 

interesting from a biodiversity viewpoint. In practice, however, it has been 

                                                

14

   Niezen (2005) 

15

   Bernet (2002) 

16

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

seen that in fact only a few varieties are used for these branded products. 
Similarly to most other cases, the manufacture of products with highly 
standardised levels of quality tends to reduce the diversity of the raw 
commodity. On principle, however, these products do have the potential to 
open up high quality niche markets for a wide range of traditional varieties. 
The most suitable suppliers in this instance would be the small highland 
farmers.

Â

Completely new products

 have also led to the development of niche 

markets. Multi-coloured potato crisps, for example, have been on sale at Lima 
Airport for around two years. The "Jalca Crisps" are produced by a processing 
and export company from a mixture of different potato varieties, which thanks 
to their natural colouring, including their skins, produce an assortment of red, 
blue and yellow crisps. Such a product may indeed help to secure the 
conservation of some unusual varieties since around 30 different varieties are 
used in the manufacture of this product. This can also secure the income of a 
few farmers and processors. In this particular instance, the supplying farmers 
of an Aymara village have a guaranteed buyer and 10% of the final sale price 
goes to a potato project with indigenous farmers.

Challenges for the Future 

All of these approaches offer the possibility of generating income and a few also 

offer traditional varieties access to quality markets. They should not, however, be over-
valued and, in many cases, are still in their infancy. To give an example: in 2005, only a 
few hundred boxes of "Jalca Crisps" were sold per month for a price of 3 US$ each, 
although the numbers being sold are increasing. The volume of trade with regard to the 
other above-mentioned new products also appears to be quite low. Apart from that, 
these marketing channels scarcely offer any openings for many bitter potato varieties. 

In spite of the many successful project approaches, various studies have 

identified the following obstacles and challenges: 

Â

(Certified) seed potatoes of adequate quality not available, 

Â

Pesticides and fertilisers too expensive and without adequate guarantees of 
quality,

Â

Access to loans limited, 

Â

Far-reaching communication via the mass media required, 

Â

Insufficient cooperation between the actors, 

Â

Difficult exchange of know-how, technologies and genetic resources between 
countries in view of intellectual property rights. 

2.5  Suitability of Promoting Potato Production in Terms of 

Development Cooperation Objectives 

The potato sector is one of the most important and dynamic branches of the 

agricultural sector in the Andes region. Support measures in this sector generally 
achieve improvements in the food, employment and earning situations for a large 
number of producing households.

16

 Potatoes, especially the interesting, less prevalent 

                                                

16

   Valdivia (2003) 

17

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

varieties, are predominantly cultivated labour-intensively, and to some extent 
processed, by poor small farmers in marginal areas. 

It is estimated that in Bolivia around 50% of agricultural value creation goes to 

small family farms, although this figure is declining.

17

 For these farms in the Andes, the 

potato is one of the most important crops. In Bolivia, over 30% of the family farms 
(240,000 of 700,000) cultivate potatoes and it is estimated that around 40,000 people 
live from the processing of and trade in potatoes in Bolivia.

18

 It may be assumed that 

similar figures apply in Peru and the neighbouring countries. 

Measures which contribute to the conservation of potato diversity often target 

poor households, for whom food security and income potential are improved. Better 
access for producers of traditional potato varieties to processors and end consumers 
through improved product quality can make a contribution to income creation and 
security. Compared with the potato market as a whole, however, the market for 
traditional potato varieties is small and will probably remain quite limited in future. 

The farmers, for whom potato cultivation is essential to their survival, show 

great dedication in implementing measures. New or improved quality products could 
also provide additional business for trade and industry, whereby the interests of 
producers and processors are generally similar. At least there are hardly any conflicts 
of interest, as the usually poorly yielding land used for the production of the traditional 
varieties is of little interest for other uses while the production volume of the traditional 
varieties offers hardly any competition to the standard varieties on the market. 

However, it is not always possible to achieve the goals of diversity conservation 

and access to markets at the same time because the quality and yields required by the 
food industry often lead to the cultivation of only a few varieties. 

Improved brand products and completely new products can ensure that a few 

further varieties may be conserved via the marketplace. Up to now, however, this 
applies to fewer than one hundred varieties out of a total of two to three thousand. 

Strengthening the market positioning of traditional products - in this instance 

chuño

 and 

tunta

 - can make a considerable contribution to the economically profitable 

use of a wide range of varieties and, in particular, non-standard varieties. As such, the 
potential of this example should be underlined. 

It may thus be possible to conserve some potato varieties in the long term 

through a suitable value chain. This applies, however, only to a small proportion of the 
varieties available. As such, approaches via value chains must be enhanced with 
measures at different levels. Some examples are provided by the Parque de la Papa 
Project, which besides using the potato value chain has sought to improve earnings by 
means of other value chains, such as tourism. This has been possible given the 
specific conditions applying to the famous 

Valle Sagrado

 and cannot be simply 

transposed onto another location. It will therefore only be possible to lastingly conserve 
a significant number of potato varieties through the support of the gene banks and by 
means of subsidised cultivation. 

To summarise, it is possible to conserve some of the potato varieties in the 

Andes through the value chain and thus also make a contribution to reducing poverty. 

                                                

17

   Valdivia, (2003) 

18

   Valdivia (2003) 

18

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

The full range of diversity cannot, however, be protected by market placement, 
rendering further measures necessary. 

19

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Conservation of Arabica Coffee Diversity in Ethiopia 

3.1  Coffee in Context 

Coffee was first cultivated in the 7th Century A.D. close to the Red Sea. Around 

1000 A.D. it was already being cultivated in Islamic monasteries (ribats) in Yemen and 
commercial trade started in the 15th and 16th Centuries, for which extensive coffee 
plantations were created in the Yemeni regions of Arabia. In the 17th Century coffee 
consumption rose sharply in Europe which also had an effect on cultivation. The Dutch 
planted their first plantation in Java around 1690 and around 1714 a single coffee 
seedling was brought to the West Indies and successfully planted on the French island 
colony of Martinique. This seedling eventually gave birth to the great plantations of 
Latin America which, as a result, have a very narrow genetic range.  

There are around 100 different coffee species but all commercially traded coffee 

comes almost exclusively from only two species, 

Coffea arabica

 and 

C. canephora 

(Robusta). Arabica grows in temperate climates in tropical highlands (>1,000 m) and 
supplies about 70% of world production. It has a finer aroma and better taste. Robusta 
is grown in the lowlands, gives higher yields and is generally a less demanding crop. Its 
taste, however, is not greatly appreciated, so it is used for blending and to increase the 
caffeine content in 

espresso

 and instant coffees. 

Whilst Robusta grows in various regions of eastern and central Africa as well as 

in Brazil and Asia (Vietnam, Indonesia), 

C. arabica

 comes originally from two 

geographically secluded mountain regions of Ethiopia. Robusta has a double (diploid) 
set of chromosomes and is cross-fertilising. 

C. arabica

 on the other hand, unlike all 

other species of coffee, has four sets of chromosomes (tetraploid) and is self-
pollinating. Investigations since the 1960s in Ethiopian plant nurseries by the FAO, 
ORSTOM and the National Coffee Collection Programme have identified more than 
130 indigenous varieties of 

C. arabica

 and the Institute of Biodiversity Conservation 

and Research (IBCR) today has 4,000 varieties of coffee on its farm in Jimma.

19

The numerous naturally occurring varieties which grow in the tropical mountain 

forests of western and south-western Ethiopia (Fig. 5) are endangered, as forest area 
has declined from 40% one hundred years ago, to only 3%.

20

 It is predominantly 

gatherers and small producers in three different production systems who use and 
maintain diversity (see chapter 3.2). Outside these small farming production systems, 
the various species can only be conserved (

ex situ

) to a limited extent and with 

considerable effort in the nurseries of research and breeding installations, as the seeds 
in gene banks quickly lose their ability to germinate if they have been frozen or dried. 
For economic reasons and to allow continued natural selection under changing 
environmental conditions, the varieties should be conserved in their natural 
environments (

in situ

).

21

In Ethiopia coffee is consumed in all households. It is chewed as a stimulant 

and forms part of the well-known Ethiopia coffee ceremony. Over half of the country's 

                                                

19

   Gole (2002), S. 239-240 

20

   AO (2003) zitiert in Gatzweiler (2005), S. 213 

21

   Gole et al. (2002), S. 237 

20

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

production is thus used domestically. It is estimated that 15 million Ethiopian 
households are directly or indirectly dependent on coffee.

22

Fig. 5: Remaining Forests in Ethiopia 

With regard to world trade, the importance of coffee grew continuously over a 

long period of time. The main areas of cultivation and export are in Latin America, 
Africa and Asia, whilst consumption is largely in western countries. Around 40% of the 
world's population consume coffee on a regular basis. 

Strongly fluctuating world market prices are influenced by climatically-

conditioned variations in levels of production and quality and by speculation. The price 
of coffee drops after a good harvest and rises after a bad one. Before the Second 
World War it was therefore already deemed necessary to introduce quotas, which 
allocated a specific share in America's flourishing coffee market to each producing 
country. In 1962 an international coffee agreement was negotiated, whereby 41 
exporting and 25 importing nations reached agreement on production and import 
quotas. The agreement fixed a price range and once the price had reached the upper 
price limit the quotas were eased. If the price fell too far, the quotas were reduced. 

The agreement was renewed in 1968, 1976 and 1983 and finally lapsed in 

1989, before it was possible to finalise the negotiations for a new agreement. For this 
reason, the 1983 agreement was extended until 1994, but without any prices and 
quotas being fixed. Nor was it possible to reach agreement in 1994 and 2001, so that 
finally only general promotional measures were agreed.

23

 After 1989, therefore, the 

price of coffee was determined exclusively by supply and demand, whereby prices rose 

                                                

22

   Oxfam (2002), P. 2. Kotecha, (undated, P. 5) quotes domestic consumption in Ethiopia as 35-45% of 

production. 

23

   http://www.ico.org/history.asp#ica4 

21

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

to their highest level in a hundred years and then hit rock bottom in 2001.

24

 An 

estimated 25 million producers and their dependants were and still are, directly affected 
by the price collapse.

25

The main reason for the price collapse was and remains, poor structural 

development, which led to a glut on the market. Overall, production rose by about one-
quarter from 6.1 million tons in 1990 to 7.7 million tons in 2005 (Table 1). Central and 
South America and Africa, who were still the main producers at the beginning of the 
1990s, were forced to give up part of their share in the world coffee trade to Asia. 
Today the world's biggest producers are Brazil, Vietnam, Colombia and Indonesia. In 
Africa, Ethiopia takes prime position. 

In Ethiopia, as in other African countries (Burundi, Rwanda and Uganda), coffee 

makes up over 60% of export revenue and represents 80% of all jobs.

26

 As such, a 

price collapse has direct economic consequences. According to reports by the 
Ethiopian National Bank the decline in coffee prices has caused a further major 
diminution of foreign exchange reserves. Coffee exports went down by around 10% 
from 103,423 tons in 1991 to 94,000 tons in 2001. In the period from 1999/2000 to 
2000/2001 alone, however, the value of these exports shrank from 262 to 175 million 
US$,

27

 a loss of one-third. Money from donors was able to alleviate some of the effects 

on state, society and the economy which would normally be caused by such a drastic 
loss of income. 

Table 1: World Production of Coffee and the Main Producing Countries by 

Region

28

Annual Production  [1000 t] 

Region/ Country 

1990

1995

2000

2003

2004

2005

World

6,072

5,537

7,553

7,184

7,787

7,719

Africa [%] 

21

20

16

12

13

13

South & Cent. 
America [%] 

62

56

55

57

58

55

Others [%] 

17

23

29

31

29

32

Ethiopia

204

230

230

222

260

260

Uganda 129

182

144

151

186

186

Afri-ca

CĂŽte d'Ivoire 

286

195

336

140

160

160

Brazil

1.465

930

1.904

1.987

2.467

2.179

Colombia 845

822

637

694

681

683

C/S.

Amer. Mexico

440

325

338

311

312

311

Vietnam

92

218

803

794

835

990

Indonesia 413

458

625

686

700

762

Oth-

ers

India

118

180

292

275

275

275

A further important reason for the decline in price was the increasing 

consolidation of companies on the buyer side. Today, a small number of international 

                                                

24

   Taylor (2004), P. 132 

25

   http://www.ico.org/mission.asp 

26

   Kotecha (undated), P. 4 

27

   Oxfam (2002), P. 3 

28

   Source FAOSTAT http://faostat.fao.org/faostat/ 

22

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

roasters and traders is ranged against a very large number of small suppliers who are 
either not organised at all or are only partially organised and therefore have little 
negotiating power. 

3.2  Functions and Actors in the Coffee Value Chain

29

The coffee value chain may be subdivided into specific inputs, the production of 

coffee cherries, their primary processing, marketing, a further processing step and, 
lastly, consumer marketing (Fig. 6). 

Coffee Production 

Coffee production in Ethiopia is practiced using four different systems of 

cultivation with varying degrees of farming intensity.

30

 The so-called "forest" coffee is 

picked from wild coffee shrubs which still exist in the tropical mountain forests in the 
west and south-west of the country. There are hardly any maintenance measures with 
this system so that the coffee meets ecological requirements; yields are, however, low. 
Forest coffee makes up only 5-6% of Ethiopia's coffee production. With the so-called 
"semi-forest" system wild shrubs are also used but these are cared for by the pickers. 
Superfluous shadow-giving trees are felled and/or new shadow-giving trees are planted 
in places where they are thin on the ground. The undergrowth is cleared to give the 
coffee shrubs a better chance of growing. Wild or cultivated seedlings are planted in 
between to increase shrub density. The semi-forest system provides about 20% of 
national coffee production. With the "garden" system, coffee shrubs are cultivated by 
susbsistence farmers in small plantations. These receive intensive care although, 
generally speaking, there are no external inputs. The majority of Ethiopia's coffee 
comes from these small plantations, which make up about 160,000 hectares or 40% of 
the country's entire coffee-growing area.

31

 These three systems contain and conserve 

the bulk of genetic diversity in Ethiopian coffee, which has made possible the breeding 
of CBD-resistant and locale-adapted strains. There are also about a further 20.000 
hectares of coffee plantation, either with or without shadow-giving trees. 

The coffee seedlings are cultivated from seed or cuttings and, after being 

planted, are kept free of weeds for three to four years, before they begin to bear. 
During this time, particularly under the garden system, other plants will be bedded in 
between the young shrubs. In well-tended plantations the shrubs will be pruned 
annually to remove superfluous shoots. In normal soil, the coffee plant gives its best 
yields during the first 20 years of its life. In the following 20 years, the quality of the 
cherries and the yield gradually decline. Depending on the climate Arabica reaches 
maturity at between 6-8 months, whilst Robusta does so at 9-11 months. 

                                                

29

   Information on cultivation and processing are available at http://th04acc0102.swisswebaward.ch

/de/html/6000.html

30

   Gole (2002), P. 239 

31

   Kotecha (undated), P. 2 

23

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

24

Fig. 6: Value Chain: Coffee in Ethiopia 

Actors

Functions

-

Training and 
organisation 

-

Breeding 

-

Village 
Inhabitants 

-

Farmers

-

Breeders/ 
Researchers 

-

Gene Bank 

-

Farmers

-

Plantation 
owners 

-

Wageworkers 

-

Production 
associations 

-

Propagation 

-

Planting 

-

Maintenance 

-

Picking/
gathering

-

Wet or dry 
processing 

-

Hulling 

-

Packaging

-

Storage

-

Buying 

-

Certifying 

-

Transport to 
Addis Abeba

-

Quality 
Checking 

-

Auction to 
Exporters 

-

Sale to 
Importers

-

Cleaning 

-

Blending  

-

Roasting 

-

Grinding 

-

Bagging 

-

Distribution 

-

End
Consumption 

-

Hulling plant 
owners 

-

Wageworkers

-

Buyers 

-

Certifiers

-

Cooperatives 

-

Wholesalers 

-

Exporters 

-

Coffee Unions 

-

Coffee and Tea 
Authority 

-

Transporters 

-

Insurers

-

Importers

-

Roasters

-

Associations, Fora 
(Ethiopian Coffee 
Forest Forum, CA,)

-

Roasters

-

Wholesalers 

-

Super-
markets

-

Discounters

-

Retailers 

-

Gourmet
Coffee Sales

-

End
Consumer 

Specific 

Inputs 

Production

Processing

Marketing

 Further  
 Processing 

Sale to

Consumers

Unwashed coffee is harvested in Ethiopia from October to March. The washed 

coffee, which requires ripe berries, is harvested between August and December. 
Medium-sized yields from small farmers are around 500-600 kg per hectare, and are 
harvested by the entire family. In favourable locations neither mineral fertilisers nor 
pesticides are used, whereby the coffee meets the criteria for ecologically-sound 
coffee, although only a small part of this "green" coffee is actually certified as such. The 
bulk of this coffee goes to the conventional coffee trade. 

First Processing in the Country of Origin 

During preparation, the coffee beans are removed from the outer casing. Pulp, 

peel and parchment-like skin are removed to get at the green coffee bean. Wet and dry 
processing form the basis for two different qualities of coffee. Whereas Robusta coffee 
is only dry-processed, Arabica undergoes both processes. Wet-processed Arabica 
coffees are know as "Milds". In world coffee trade terms, there are two groups of 
"Milds": "Colombian Milds" and "Other Milds". Dry-processed Arabica is described as 
"Natural". Within the coffee trade, this Arabica is designated as a "Brazilian Natural". 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

80-90% of Ethiopia's coffee is dry-processed. For this, the cherries are picked 

or gathered from the ground and spread out in thin layers to dry in the sun. Since the 
degree of ripeness can be variable in dry-processing, the trees can be harvested in one 
go. Dry-processing is simple and cheap but requires adequate dry periods and space 
for drying. 

Wet-processing was developed for damp regions. Only fully ripe cherries, which 

are harvested at 8-10 day intervals, may be used. The cherries are squeezed into a 
pulper whereby most of the pulp separates from the parchment-like skin. The beans, 
with the rest of the slimy pulp are then fermented for 1-2 days. The remaining fruit pulp 
liquefies and can be washed away. After washing, the coffee is dried in the sun or in 
driers with a humidity of 11%. The leftovers from the processing are used as mulch or, 
after composting, as fertiliser. 

Wet-processing is carried out in cooperative washing stations, by private traders 

or in warehouses. After drying, the product is know as "parchment coffee". 

Marketing

In Ethiopia coffee marketing is between producers who sell to their cooperatives 

or to private traders. All traders involved are licenced by the State to undertake certain 
functions. As such, the buyers (

Sebsabies

) may only buy directly from the farmers and 

may only sell on the coffee to the wholesalers (

Akrabies

).

Akrabies

 for their part, may 

only buy from the 

Sebsabies

 and then deliver the coffee for auction. They may not, 

however, export directly. Export is the privilege of a few special exporters with the 
corresponding licence. 

The cooperatives have become less relevant since the coffee crisis, as some of 

them are bankrupt and others do not possess sufficient capital to buy up larger 
quantities of coffee. After the breakdown of the coffee agreement they initially played 
an important role in fixing a minimum price. The private traders had to offer more than 
this price in order to buy the coffee. Today, since the cooperatives can no longer 
guarantee that they will buy up the harvest, private traders are in a position to demand 
lower prices. 

Where possible, the farmers in Ethiopia prefer to sell the cherries for wet-

processing as higher prices may be obtained. The sale of "fresh" cherries is, however, 
only possible during a short period during the harvest, when prices are low across the 
board. Dry cherries on the other hand may be sold all year round. Many farmers are, 
however, forced to sell their coffee directly after harvest, to get cash. Financial 
pressure and a lack of information on market prices often allow the buyers to get the 
produce at low prices. Almost half of the small farmer's annual cash income comes 
from the sale of coffee and work directly related to it.

32

The buyers in turn sell the coffee to the wholesalers, who bring the coffee to 

Addis Abeba, where the beans are examined by the state-run Coffee and Tea Authority 
and quality-approved. Samples of those coffees which are suitable for export are sent 
to the auction house, where they are tested and bid for by the exporters. Lower quality 
coffee goes to the domestic market. 

                                                

32

   Patty 

et al

. (undated), P. 18 

25

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Exporters themselves do not act as buyers and must be Ethiopian. Foreigners 

may neither bid at auction nor act directly as exporters. The exporters clean, sort and 
blend the coffee and prepare it for export. The coffee must be submitted again to the 
Coffee and Tea Authority which releases it for export after a final examination. For this, 
the coffee is packed in labelled standard 60 kg sacks. 

The exporters sell the coffee to international importers, who then sell the coffee 

on to the roasters in the destination countries. The 10 biggest importers of Ethiopian 
coffee are Volcafe, Weser International, Al Kahair General, Mitsui, Nichimen, 
Mitsubishi, Toyota Tususho Corporation, Taloca, Toshoku and Neumann. Ethiopian 
coffee goes predominantly to Japan (21%), Germany (20%), Saudi Arabia (14%), USA 
(8%) and France (6%)

33

.

Since 1999 four cooperative umbrella associations have been set up as an 

alternative to traders, buyers and exporters. One of these is the Oromiya Cooperative 
Union with its own export licence and a total of 23,000 members. It buys the coffee 
from its members and takes over the transport to Addis Abeba as well as the hulling, 
cleaning and sorting. The Union's coffee must also be inspected and passed by the 
Coffee and Tea Authority but the Union may negotiate directly with the importers and 
does not have to sell the produce at auction. The Union numbers Fair Trade amongst 
its buyers. Apart from the Unions, there are a few special producers who also have a 
licence to directly supply foreign importers. 

Further Processing 

The coffee is roasted in the consumer country. Blends from different types of 

coffee are normally used, although occasionally a single variety may be roasted. 

Roasting takes place at temperatures between 160-250ÂșC and gives rise to the 

actual coffee aroma, the preservation of which, even with good packaging, is very 
limited. During roasting, the coffee loses about 20% of its weight but at the same time 
increases its volume by about 25%. After roasting the beans are cooled in a sieve to 
prevent further changes. The roasted beans are then sorted again by quality. 

New technical processes have a bearing on possible coffee blends. Whilst 

previously Robusta could only be added in small quantities to mild coffee blends, the 
steam cleaning process gives Robusta a smoother flavour thus allowing a greater 
quantity to be added to the blend.

Coffee extract is produced in both the consuming and, to some extent, the 

producing countries. Roasted, ground coffee is extracted using hot water. The 
granulated coffee is created through spray drying or, in the case of better quality 
coffee, by freeze drying. In spray drying the coffee extract in fed into a spray tower of 
up to 30m in height and blown up the tower with high pressure. Counter-currents of hot 
air evaporate the coffee's water content. In freeze drying the viscous coffee slush is 
placed on a steel belt, where the liquid is extracted. The frozen coffee is then broken 
up into the desired granule size. 

                                                

33

   Oxfam (2002), P. 7 

26

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

End Sale 

After further processing the roasters pass on the coffee to the wholesalers and 

retailers who sell it to the end consumers. In today's coffee market the big roasters 
have a powerful position alongside the importers. Kraft Foods, NestlĂ©, Proctor & 
Gamble, Sara Lee and Tchibo buy up about half of the world's coffee. 

Alongside the big international companies, smaller roasters also have an 

appreciable market share. They offer "Specialty Coffees" with which they have opened 
up their own circle of clients. They often maintain direct relationships with the 
producers, for whom they open up niche markets, e.g. certified Fair Trade or "green" 
coffee. Nevertheless, the bulk of Ethiopian forest and semi-forest coffee which fulfils 
the criteria for "green" coffee is marketed as conventional coffee, without receiving any 
premium for special quality.

34

There are clear distinctions in the roasted coffees on the market. Coffee's 

biological diversity and the types of processing available, allow the creation of flavours, 
whose range can be compared with those of wine.

35

 The various quality criteria may be 

physical properties, flavour, environmental criteria (shadow, forest or wild coffee) or 
social characteristics. Generally speaking there are clear differences in price between 
cheap offers and premium coffees, whereby profits are higher in the more expensive 
segment of the market than in the cheaper. This price differentiation, however, has 
tended to create more profit in the consumer countries than for the producers (Fig. 7).

36

The proportion of the end sale price which remains in the producing countries 

has declined. At the beginning of the 1990s the producing countries received on 
average one-third of the coffee's end value; in 2002 this value had gone down to about 
10%. In comparison, the profit margins of NestlĂ© and Sara Lee are estimated at 26% 
and 16% respectively, in other words quite high when compared with the marketing of 
other foodstuffs and luxury items.

37

 The nominal coffee price for the four main coffee 

types traded rose from 0.50 US$ per pound in the mid 1960s to about 60 US$ per 
pound in 2001. When measured against purchasing power, however, the real price 
dropped by about 50%.

38

 Today's price barely covers production costs. 

                                                

34

   Gatzweiler (2005), P. 214 

35

   Fitter & Kaplinsky (2001), P. 4 

36

   Fitter & Kaplinsky (2001), P. 14 

37

   Oxfam (2002), P. 2 

38

   Fitter & Kaplinsky (2001), P. 8 

27

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 7: Distribution of the Coffee Price amongst the Actors in the Value Chain 

3.3  Support Measures and Findings in the Area of Coffee 

Production in Ethiopia 

Various donors have undertaken support measures at various points of the 

coffee value chain in Ethiopia's coffee sector. At production level there have been 
efforts to conserve the naturally occurring species and varietals 

in situ

. Through the 

training of the farmers, an attempt was made to improve the quality of the coffee 
produced and create better marketing conditions through certification. The various 
producers' organisations (cooperatives, umbrella associations) were strengthened and 
the marketing infrastructure was improved. As around 90% of Ethiopia's coffee is 
produced by small farmers in forest, semi-forest and garden systems, who also look 
after diversity, support measures on behalf of the farmers also help indirectly to 
conserve coffee's diversity. 

The World Bank's first two Coffee Projects (1972-80 and 1983-92) focused on 

improving processing and marketing. The Swiss cooperation promoted activities which 
increased yields and raised the quality of washed coffee through the improvement of 
existing washing stations and the construction of new ones. 

Since 1977 the EU has been conducting the Coffee Improvement Project (CIP) 

in Ethiopia. Its focus was, and still is, the improvement of coffee production. The EU's 
involvement began at a time when the coffee berry disease (CBD) was endangering 
production. Initially, therefore, nurseries for propagating CBD-resistant strains were 
given support, access roads were built to facilitate marketing and loans were granted 
for the construction of washing stations. 

The current Coffee Improvement Programme IV (CIP IV) sponsored by the 

European Commission is taking action in the following areas: 

Â

improvement in the way technical advice is provided to farmers. 

28

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Â

Promotion of 80 coffee tree nurseries, in order to produce locale-adapted, 
healthy seedlings. 

Â

The direct conservation of existing wild varieties serves to protect the coffee 
forests: protected areas were established in three zones in the south-west 
(Geba-Dogi - 18,600 hectares, Boginda-Yeba - 5,500 hectares and Kontir-
Berhan - 20,000 hectares), to protect the existing genetic diversity of forest 
coffee.

39

 Only local farmers have access to these forests and limited 

usufructuary rights. They may, for example, gather firewood there. 

Â

Promotion of coffee research: here the aim is first and foremost to develop 
indigenous varieties further and to breed CBD-resistant varieties. 

Â

Marketing promotion through improving the collation of statistics on coffee 
prices and quantities sold, the improvement of the analytical laboratory and 
support in helping to sell on the international markets. 

Further support for the Ethiopian coffee sector takes the form of marketing 

through the Fair Trade Initiative. Fair Trade is  a member of the umbrella organisation 
Fair Trade Labelling Organisation International (FLO)

40

, which cooperates worldwide 

with 420 producer associations with a total of 800,000 members.

41

 In 2004 FLO worked 

in Ethiopia with three producer associations.

42

Producers who wish to obtain Fair Trade certification must be organised into 

associations, whose membership is largely made up of small farms. These 
associations must be democratic and politically independent, must commit themselves 
to sustained development, ecology, education and the promotion of women and decide 
democratically on the division of profit.

43

 Coffee was the first Fair Trade product and 

has up to now had the highest sales. In spite of strong growth rates, the absolute 
quantities marketed have been small (Table 2). In 2001 about 1% of coffee was sold 
via Fair Trade.

44

A further certification system with social, ecological and economic goals is 

offered by the Utz Kapeh Foundation

45

 initiated by the Dutch retailer, Ahold. The Utz 

Kapeh certification criteria are based on, and recognised by, EUREPGAP, whereby 
further criteria of the International Labour Organisation (ILO) have been added as well. 

Table 2: Fair Trade Coffee Turnover 1998 – 2003

46

Year

Tons

Increase 

1998

11,664

1999

11,819

1.3%

2000

12,818

8.5%

2001

14,388

12.3%

2002

15,780

9.7%

2003

19,872

25.9%

                                                

39

   Gatzweiler (2005), S. 216 

40

   http://www.transfair.org 

41

   http://www.fairtrade.net/sites/certification/explanation.html 

42

   http://www.fairtrade.net/sites/products/coffee/partners.html 

43

   Robinson (2000), S. 12 

44

   Fitter & Kapinsky (2001), S. 12 

45

   http://www.utzkapeh.org/index.php?pageID=101 

46

http://www.fairtrade.net/sites/products/coffee/sales.html

29

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

In contrast to Fair Trade and Utz Kapeh whose aims tend to be the 

improvement of the economic and social position of the producers, the activities of the 
Rainforest Alliance are focused more on the conservation of eco-systems and 
biological diversity. In cooperation with an Ethiopian coffee exporter (ASK International 
Trading), a buyer with a washing station and the Belgian coffee importer, EFICO, a 
group of 678 coffee producers were able to obtain Rainforest Alliance certification.

47

The members committed themselves to conserve biodiversity, manage their natural 
resources and apply fair working conditions, using a verifiable set of recognised 
standards. The group's certified coffee is bought up by the Belgian importer EFICO, 
whose company-owned foundation supports the farmers in achieving the certification 
standards. There is increasing demand for coffee with Rainforest Alliance certification 
and higher prices can thus be achieved for the producers. 

The Rainforest Alliance and Utz Kapeh initiatives are of major importance as 

they are trying to create better conditions for the producers within the mainstream 
coffee market, whereby they themselves obtain marketing advantages for their 
products through the acceptance of ecological, social and economic standards and, at 
the same time, ensure for themselves a lasting supply of coffee. Unlike Fair Trade, 
which guarantees a minimum price and needs the acceptance of the end consumer to 
achieve higher prices, these new concepts potentially allow a large number of 
producers access to improved production conditions, and can thus make a great 
contribution to the conservation of genetic diversity. 

Since 2003, improved market access and trading conditions and the use of 

sustainably effective production techniques have been the goals of the Common Code 
for the Coffee Community (4C) initiative, which is supported by the European Coffee 
Federation, the Swiss State Secretariat for Economic Affairs (SECO) and the GTZ. 4C 
is trying, with all relevant actors in the sector, to create a concept which will ensure fair 
conditions for all parties involved in the mainstream sector. 

                                                

47

   http://www.rainforest-alliance.org/news.cfm?id=ethiopian_farmers 

30

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

The steering committee (see above)

48

 comprises representatives of the 

producers, traders, processors, trade unions and environmental organisations. 
Measures aim at increasing efficiency in production and trade and improving quality, 
whilst taking the principles of ecological, social and economic sustainability into 
consideration. East Africa is represented on the steering committee by the East African 
Fine Coffees Association (EAFCA). The initiative's potential lines in the involvement of 
a large section of the buyers, who buy 65% of all coffee. 

3.4  Results and Impact of Support Measures in Coffee 

Production

The bulk of coffee production comes from small farmers. For these farmers, 

coffee often represents the main source of income whilst basic food requirements are 
covered by other crops. Cash earned through coffee is used to buy clothing, as school 
money for the children, for health care and for the purchase of important household 
equipment and extra food. When the income from coffee declines, expenditure in these 
areas goes down accordingly. In the event of an extreme loss of income, reserves, 
usually in the form of livestock, are used up. 

                                                

48

   http://www.sustainable-coffee.net/download/2005/steering-committee.pdf 

31

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 8: Impact Pathway: Coffee in Ethiopia 

Part of the coffee 

marketable at better 

prices

Formation of 

producer umbrella 

organisations

(Union)

Income for coffee 

producers and 

agricultural workers 

secured 

Sustainability of 

producer

organisations

improved

Income of suppliers, 

processors and 

traders assured 

Conservation of the 

forests with their 

diversity of wild coffee 

varieties and other 

biodiversity improved 

by ecological use 

Poverty sustainably reduced 

Marketing support 

(e.g. Fair Trade, 

certification) 

Support Measures 

Promotion of 
organisation,

training and 

advice

Improved

infrastructure

(roads, washing 

stations)

Results 

Impact 

Food, education, 

health care, clothing, 

housing, etc. of the 

producers, wage-
workers and their 
families improved 

Prices of other 

products stabilised 

through demand from 

the coffee farmers 

(maize, teff, livestock) 

Differentiation and 

improvement in 

quality of the 

products

More sustainable 

system of cultivation 

Protection of wild 

coffee core areas

Improved quality 

and efficiency in 

production

Conservation and 

use of coffee 

diversity (cultured 

and wild varieties) 

Breeding of 

adapted and 

CBD-resistant 

varieties 

One notable success in existing development cooperation measures was, 

initially, the early introduction of around 50 pulping and washing stations by the World 
Bank and the EU in the 1970s and 1980s, primarily in the southern coffee cultivation 
areas. Thanks to improved processing, the coffee price almost doubled both for the 
farmers and the country. Further private washing stations (around 100) were built at the 
end of the 1990s. Following the high price phase in 1999, the construction of washing 
stations boomed. A further 450 were built, which led to destructive competition 
amongst the stations and to unchecked water pollution. 

Continuous improvements in breeding allowed the development of CBD-

resistant varieties, so that it has been possible to contain this disease since the 
dangerous epidemic in 1973. Since then, various indigenous varieties have been 
developed to suit different conditions of cultivation; breeding work carried out by the 
Ethiopian institutions continues to be supported by an EU programme. 

32

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Up to now there has been hardly any progress in achieving lasting 

infrastructural improvements (roads, telecommunications) or in advising farmers. 50% 
of the producers live more than 35 km away from the nearest all-weather road, so that 
they cannot be reached all year round. Only 60% of the farmers are now literate, so 
that further education and the exploitation of their full potential is limited.

49

The direct protection of biodiversity centres for coffee through the establishment 

of protected zones is important for the conservation of the last wild stocks, but has 
proved to be of limited effect, as monitoring is inadequate.

50

Promoting the organisation of the producers into producers' associations, 

cooperatives and unions has benefited the producers. On the one hand such 
organisations facilitate the various certifications and cooperation with external initiatives 
(Rainforest Alliance, Utz Kapeh), while on the other hand, the Unions were able to 
achieve higher prices than the exporters when selling to commercial importers (Table 
3). As elements of intermediate trading are removed from the union model, the 
cooperatives obtain considerably higher prices than when dealing with private buyers 
and can thus distribute profits to their members. 

Table 3: Sale Prices along the Value Chain

51

Price Level / 

Product

Sale Price achieved 

in commercial trade 

(Birr/kg) 

Sale Price achieved when 

selling through Union 

(Birr/kg) 

Farmer 

Farmer 

Dry coffee 

1 – 1.5 

1 – 1.5 

Wet coffee 

0.5 – 0.75 

0.5 – 0.75 

Buyer/ Cooperative 

Cooperative 

Dry coffee 

1.25 – 1.75 

4 – 6 

Wet coffee 

0.75 – 1 

8 – 11 

Wholesaler 

Coffee Union 

Dry coffee 

4 – 8 

8 – 10 (commercial trader) 

Wet coffee 

8 – 11 

Exporter

Dry coffee 

7 – 9 

Wet coffee 

11 – 16 

23 – 26 (Fair Trade) 

15 – 20 (commercial trader) 

The Fair Trade initiative already affords the farmers a substantial increase in earnings. 
They receive long-term supply agreements, a minimum price of 1.26 US$ per pound

52

plus an additional 0.15 US$ in the case of organic coffee. When the world market price 
surpasses the Fair Trade minimum price, the farmers receive at least 0.05 US$ more 
than the world market price. The certification and monitoring of Fair Trade standards is 
carried out by FLO-Cert Ltd. Fair Trade prices give the farmers extra income and allow 
them to plan, especially during years when prices are low (Fig. 9). Nevertheless, Fair 

                                                

49

   Personal information 

50

   Gatzweiler (2005), P. 216 

51

   2001 data from Oxfam (2002), P. 8 

52

   British Pound = 0.4536 kg 

33

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Trade offers a solution for only a few producers as consumer markets are small and 
are outside the mainstream coffee market. The Fair Trade initiative has been 
successful to date in that it managed to create a relationship between consumer and 
producer and to convince consumers that by paying a voluntary surcharge, they are 
making a real contribution to improving the living conditions of the producers. For this, 
the consumers are prepared to bear the costs of certification and are willing to pay a 
social premium. 

Fig. 9: Development of Fair Trade and World Market Prices for Coffee 1992 - 
2005

53

New approaches such as the 4C initiative, which seek to balance the interests 

of producers, traders and consumers within the mainstream industry, are more 
promising. If successful, such approaches will bring about an improvement in 
production conditions and thus in the living conditions of a great number of producers. 
As such they are also an incentive to many small producers to continue cultivating the 
various wild and cultured varieties and contribute to the conservation of genetic 
diversity. 

Efforts to improve the traceability of coffee can also help to achieve higher 

prices for unique quality types (e.g. forest coffee). 

In order to achieve benefits for the majority of coffee producers, however, there 

must first be improvements in the mainstream market. In the Fair Trade sector too, 
efforts are being made to move out of a niche market position and open up new 
markets for the producers. Fair Trade products are increasingly available in the large 
supermarket chains (Metro, Rewe, Edeka, Spar). One of their most recent successes 

                                                

53

   http://www.transfair.org/produkte/kaffee/Wissenswertes 

34

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

was being taken up by Starbucks, which is now the USA's biggest buyer of Fair Trade 
coffee.

In spite of some success stories, certification approaches are still difficult to 

understand for many farmers and the Ethiopian government views them, to some 
extent, with scepticism. Ethiopia offers very good opportunities for further improving the 
quality and production of its premium coffee. First, however, it is necessary for 
companies, who have already made reasonable concessions, to continue ensuring the 
traceability of the coffee and to use this in their marketing. Only a small proportion of 
certified coffee is sold as such. It remains to be seen to what extent improvements in 
quality will lead to sustained higher prices for Ethiopian coffee, given that the quality 
standard will also rise worldwide and it will become more difficult to differentiate 
between premium coffee and the lower-grade product.

54

3.5  Suitability of Promoting Coffee in Terms of Development 

Cooperation Objectives 

The shape of the coffee value chain is determined by demand, with the 

exception of a few niche markets.

55

 One explanation for this is that production is split 

amongst several countries in competition with each other, who have developed few 
alternatives to coffee production. In the countries themselves, the producers are 
fragmented into a multitude of small farmers who are poorly organised and have no 
common representative of their interests. 70% of the world's coffee is produced by 
farms with an area of under 5 hectares. Equally in Ethiopia, it is small farms which 
produce the vast majority of the coffee and which, at the same time, cultivate and 
conserve the genetic diversity of the Arabica coffee. 

The now-defunct National Marketing Boards, which were necessary to monitor 

the rules of the Coffee Agreement, were dissolved in the wake of structural adjustment 
programmes and a general trend away from state intervention. In 1985, for example, 
only 15 of the 51 main producing countries had a coffee market which was controlled 
by private companies.

56

 All the others had more or less state-controlled Coffee Boards, 

Coffee Institutes or stability funds which regulated the market. With the abolition of 
these regulatory bodies, many countries lost the ability to control exports and build up 
reserves.

57

On the demand side, on the other hand, there are only a few big trading 

companies and roasters, leading to a very uneven distribution of power. However, 
these buyers are also vitally interested in the conservation and improvement of the 
quality of Ethiopia's coffee and are prepared to make concessions which will help to 
protect the biological diversity of Ethiopian coffee. 

In evaluating support measures in the coffee value chain, one must differentiate 

between the specific situation in Ethiopia and the situation in other coffee-producing 
countries. In Ethiopia, as the genetic home of Arabica coffee, the conservation of 
natural coffee diversity is a specific goal of support measures, which is not the case in 
other countries. Also measures to promote the sale of Ethiopian coffee make at least 
an indirect contribution to conserving diversity, as the small farmers in Ethiopia both 

                                                

54

   Personal information 

55

   Fitter & Kaplinsky (2001), P. 14 

56

   Ponte (2001), P. 22 

57

   Ponte (2001), P. 15 

35

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

produce the bulk of the coffee in the country and conserve the diversity in their coffee 
gardens.

This particular situation justifies measures which ensure that Ethiopian coffee 

retains a specific market share of worldwide consumption in the long term. All 
measures which increase efficiency of production and competitiveness or which open 
up privileged niche markets which acknowledge its special role, quality and variety, are 
suitable. The most appropriate areas for support are quality improvement measures, 
classification of different qualities, certification and the organisation of the producers. 

Outside the specific context of Ethiopia and against the backdrop of a market 

which periodically suffers from surplus production, those measures which stabilise 
production with sustainable cultivation methods and which help to improve efficiency 
and quality, are most suited to facilitate the marketing conditions and thus the living 
conditions of the producers. Marked increases in production may lead to a further drop 
in prices. While they may have positive effects for single groups of producers, these will 
be at the expense of other producers, domestic and foreign. 

Measures to increase consumer awareness and to develop organic brand 

names in order to promote the market share of Fair Trade, organic and premium 
coffees are promising. However, even where these niche markets are expanded, the 
overall volume of coffee sold remains limited. 

It would seem that long-term improvements for the producers are more likely to 

be achieved through measures on the side of the buyers and at political level. 
Increased awareness and negotiations between all parties in the value chain, together 
with consumer pressure, may promote voluntary undertakings, which will improve the 
production conditions for the producers. There appears to be little political interest at 
present in a new coffee market agreement which would regulate the fair distribution of 
profits between producers and buyers. 

Apart from the above, measures to promote diversification for coffee farmers, in 

order to reduce their one-sided reliance on the world market, are of prime importance. 

36

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Argan Oil Production in Morocco 

4.1  Argan Oil in Context 

Argan oil is obtained from the fruit of the argan tree (

Argania spinosa

), also 

known as the Morocco ironwood. This tree belongs to the family of 

Sapotacea

(soapwoods), and it can be traced back over more than two million years to the Tertiary 
Period. A typical tree has a  broad, usually twisted, trunk of up to 10m in length, with a 
huge bushy crown, reaching up to 14m in diameter. Its unique, very deep and wide-
reaching root system allow it to make excellent use of the water in the soil, but also 
because of its powerful root penetration and formation of pores, it can channel 
extremely heavy rains below ground, thus raising the groundwater level. The fruit 
ripens year-round and in good years, a tree may bear up to three generations of 
blossoms and fruit at completely different stages of maturity at the same time. The 
argan tree can tolerate drought and temperatures of over 50ÂșC by going dormant. 
When the first rains fall, it then once again puts out leaves and flowers. 

The argan tree has various uses. The very hard, dense wood serves as 

firewood, for charcoal production and for building. The leaves and youngest shoots are 
eaten by livestock. The fruit comprises the fruit pulp and an extremely hard nut with two 
to three kernels, from which a premium oil is pressed. This oil contains over 80% 
unsaturated fatty acids, Vitamin A, considerable quantities of tocopherol (Vitamin E - 
antioxidants) and a remarkable quantity of sterols (schottenol and spinasterol). The oil 
is used as a human foodstuff but since time immemorial has also been used for skin 
and hair care, for tending wounds, and against rheumatism and arteriosclerosis. A wide 
range of plants, such as grasses and grain (particularly barley), as well as medicinal 
and aromatic plants, such as thyme, lavender, thistle and wild flowers, grow under the 
shade of the argan tree. They are either used for producing honey or the herbs and 
medicinal plants are gathered by the inhabitants. 

The argan tree grows on the southern slopes of the Upper Atlas, on the 

northern slopes of the western Anti-Atlas and, in between these, in the broad basin of 
the Souss and Massa Rivers in south-west Morocco. This semi-arid to arid region is 
known as the Arganeraie. There are individual clusters of trees in a valley near Romani 
and in the Oujda region. The argan tree population in south-west Morocco covers a 
total area of approx. 800,000 hectares and presents a wide variety of characteristics.  A 
density of 250 trees per hectare, 150km north of Agadir in the Upper Atlas, is not 
uncommon. There are however densities of under 40 trees per hectare which grow like 
bushes, in the desert border region near Gulimime in the Anti-Atlas. Natural tree stocks 
in Morocco are estimated to be between 150-250 years old. 

The Arganeraie region (Fig. 10) comprises 6 provinces (Esssaouira, Taroudant, 

Agadir Ida-Outanane, Inezgane Ait Melloul, Chtouka AĂŻt Baha and Tiznit) and, with the 
exception of Agadir (51%) has a low level of urbanisation (26%). Around 2 million 
people live in the Arganeraie region, with a population density of 46 people per square 
kilometre. As such, the Arganeraie is a sparsely inhabited region with strong focus on 
agriculture and forestry. 

37

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 10: Distribution of the Argan Tree in Morocco 

The forests of the Arganeraie have been largely state-owned or communally-

owned since the turn of the century. Their usage by the people living in and around 
them (predominantly Berber tribes) is regulated by a ususfructuary law dating back to 
1925 which was specially introduced for the argan forests. According to this law, the 
inhabitants of the Arganeraie have inheritable individual or collective usufructuary rights 
to graze, to engage in agriculture, to remove wood, to harvest the fruit and to remove 
sand, soil, stones, lime and other building materials. 

During the main season for harvesting the fruit, between July and September, 

grazing is prohibited in the Arganeraie. The families of beneficiaries can gather the 
fallen, ripe fruit, dry it in the sun and store it. Each tree gives an annual yield of 
between 10-30 kg of fruit. Estimates of annual production of argan oil in the Arganeraie 
fluctuate between 2,500 and 4,000 tons, which corresponds to less than 2% of national 
edible oil consumption.

58

Traditionally argan oil is obtained from the 2-3 kernels of the nut by women 

using a complicated hand-pressing process. Firstly, the dried fruit pulp is removed

59

,

after which the nut is cracked between two stones, whereby the kernels should remain 
undamaged. The kernels are lightly roasted to enhance the nutty flavour and then 
ground in a stone quern. The oil is removed from the resulting oily paste by constant 
kneading and the addition of lukewarm water, and is then decanted. The remaining fruit 
pulp and leftover oilcake is a valuable source of livestock fodder. The nut shells are 
burned for heating or for toasting the kernels. 

                                                

58

   Nouaim, 2005 

59

The removal of the fruit pulp was previously done by goats. They ate the fruit and when chewing the 
cud would spit out the nuts. The oil obtained from these kernels has a very strong taste and smell. 

38

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Around 38 kg of fruit or 2.6 kg of kernels are required to produce one litre of 

argan oil. The argan tree, and the entire Arganeraie system of land use, with its various 
products, especially argan oil, represents an important source of income for the rural 
population of Berber origin (Amazhir). Argan oil is also used for personal consumption. 
For 86% of the population in the Essaouira region it forms a regular part of their diet.

60

The land use system in the Arganeraie is currently threatened by irreversible 

damage. The following, overlapping factors have led to a premature aging and decline 
in tree stocks: widespread agri-industrial farming of the Souss plain area; deforestation 
of large areas to clear space for building land, roads and other infrastructure; removal 
of firewood and timber; one-sided use of the tree to obtain fodder; and widescale felling 
by forestry and local authorities.

61

 The consequences are a drop in the groundwater 

level, the depletion of flora and fauna and the weakening of their power to regenerate, 
and initial desertification. 

As part of a GTZ-supported project "Projet Conservation et DĂ©veloppement de 

l'Arganeraie" (PCDA), a framework plan was worked out in 1997-1998, which led in 
December 1998 to the region being recognised worldwide, through UNESCO, as the 
"Arganeraie Biosphere Reserve". As such, the added value of the region is increased 
through the improved use of existing potential consistent with the goals of nature 
protection and landscape conservation. Those economic systems which distinguish 
themselves through environmental-friendliness and the managed use of resources are 
particularly being promoted. 

4.2  Functions and Actors in the Argan Oil Value Chain 

Given the major differences involved, it seems sensible to differentiate between 

two distinct argan oil value chains. The main difference is in the technique used for 
extracting the oil: either by hand or mechanically. Hand-pressing is less productive and 
is practiced in the villages. Mechanical pressing achieves a higher level of extraction

62

and greater labour productivity. A prerequisite for this, however, is a regular supply of 
kernels so that the press can work at full capacity. With this system, processing tends 
to shift to urban and periurban centres with the rural areas being used purely for the 
supply of the raw material. The actors and their roles in the various phases of both 
value chains are discussed in the following chapters. 

4.2.1  Value Chain: Hand-Pressed Argan Oil 

The value chain for hand-pressed argan oil for the domestic and international 

markets is made up of seven steps (Fig. 11): specific inputs, gathering in the wild, 
processing, treatment, marketing/export, retail and consumption both in the domestic 
and international markets. 

Inputs include measures to promote the organisation of rural producers and 

processors, the formalisation and application of usufructuary rights, the adjustment of 
the legal framework, the monitoring of quality and observation of certification 

                                                

60

   Nouaim (2005), P. 145 

61

   Since a 1976 byelaw came into effect, argan tree stocks provide up to 80% of communal revenue for 

some rural communities. 

62

   100kg of dried fruit given 2.6 l of hand-pressed and 2.9l of machine-pressed edible oil.  

39

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

standards, advanced exploration of improved cultivation and production techniques, 
higher product quality and further development of the end product. 

Gathering in the wild includes gathering, drying and storing of fruit by those 

families who have usufructuary rights for the argan trees. The quantity of fruit gathered, 
per family, fluctuates considerably depending on location (productivity and tree 
density), ranging between 5 to 160 sacks (around 40kg of fruit per sack) per season. 

The fruit is peeled, the nuts broken open, the kernels are sorted, roasted and 

hand-pressed. It takes around 24 hours to produce one litre of oil. These production 
steps are women's work and are carried out by women either within the family or in 
cooperatives which have been set up since the mid 1990s with the support of the GTZ. 
The number of members ranges from 20 to 60 women per cooperative. They almost 
exclusively process fruit from their own harvest/gathering. In 2005 there were around 
30 recognised and active women's cooperatives, producing argan oil by hand in the 
Arganeraie region. One feature of these cooperatives is that they are usually located in 
less-accessible areas of the Arganeraie with relatively good stocks of argan trees. 

In the treatment phase, the hand-pressed oil is decanted, filtered and bottled. 

Again, these jobs are undertaken by the women in family-run enterprises, who fill the 
oil into used plastic bottles. The family will consume the oil itself or will give it to family 
and friends. Any surplus goes to the local market (souk), directly to the urban end 
consumer (production to order), to grocers, informal street traders or sold to small 
private companies in the tourist centres such as Agadir and Essaouira. Depending on 
season and demand, family enterprises may make between 3 and 8 Euro per litre

63

(summer, holidays, religious festivals). 

The private traders in the tourist centres repackage the argan oil either as 

edible oil or as cosmetic oil to sell on to the international tourists, or process it further 
into natural remedies. They sell their products in their own boutiques with linked "health 
centres". The main target group for street traders, who place their booths on the main 
tourist routes, are domestic tourists, particularly Moroccan emigrants, who return to 
Morocco in great numbers during the summer. 

                                                

63

   The official minimum wage is 2,100 Dhs or around 200 Euro per month (5 day week, 8 working hours 

per day). On the basis of 22 working days, this gives a daily wage of 95 Dhs, about 9 Euro. Between 
20-24 hours (3 days) are needed just to process the oil! 

40

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 11: Value Chain: Hand-Pressed Argan Oil in Morocco 

- Gathering

the fruit 

- Drying

- Storage 

- Peeling the

fruit

- Breaking open

the nut

- Sorting the

kernels 

- Roasting the

kernels

- Hand-pressing

the oil  

- Transport to

collection point 

- Collecting the oil 

- Decanting

- Filtering

- Bottling in small

quantities

(bottles/flasks)

- Product design

- Quality analysis

- Filling into plastic

bottles

- Negotiations

with clients 

- Packaging

- Despatch 

- Transport  to

souk or
roadside booth 

- Consumption as

edible oil 

- Use as cosmetic/

health product  

- Use as natural

remedy 

Functions

- Sale

- Direct  sale

- ODCO

- State

bodies 

- Forestry authority

- Communes

- Projects 

- International

certifiers 

- Universities

- Families  with

usufructuary rights

- Women’s

Cooperatives

- Family

workshops
with usufructuary
rights

- Union of Women’s

Cooperatives (UCFA) 

- Economic

associations (GIE)
of women’s coops.

- Cooperatives

- Smaller private

enterprises 

- Laboratories

- Families  with

usage rights 

- UCFA

- GIE

- Cooperatives

- Private

companies

- Families with

usufruct-
uary rights 

- International

tourists 

- Domestic

tourists 

- Urban end

consumers

- Commercial

chains

Private
companies

Cooperatives

-

Retailers

-

Grocers

-

-

-

-

-

- UCFA

- GIE

-

-

-

-

-

-

Actors

-

-

-

-

- Informal

small traders 

- Street traders

- Training/Org.

of cooperatives

- Application of

usufructuary rights

- Legislation, byelaws

for argan oil

- Quality  control

- BIO Certification

- R&D

- Projects

Marketing

Collection

Treatment

Processing

Gathering -

in the wild

Specifc
Inputs

Retail

Consumption

- UCFA

- Exportagenten

- EACCE

- Zoll

- Transporteure

- Zoll

- GroßhĂ€ndler

- EinzelhĂ€ndler

- InternethĂ€ndler

Beteiligte Akteure

Funktionen

- Verpacken

- Transport 

Flughafen

- Zollformali-

tÀten

- QualitĂ€ts-

kontrolle

- Importformali-

tÀten

- QualitĂ€ts-

kontrolle

- Verpacken in 

kleine Gebinde

- Verkaufen

- Weiterver-

arbeitung

- Sammeln   

- Dekantieren

- Filtern

- AbfĂŒllen in 

Großgebinde

- QualitĂ€tsanalyse

- Verzehr als 

Nahrungsmittel/
Functional
Food

- Verwendung 

als Naturheil-
mittel

- Union der Frauen-

Coops (UCFA)

- Ă–konomische 

Interessens-
verbĂ€nde (GIE) 
von Frauen Coops

- Labors

- Endverbraucher

Export

Sammlung

Aufbereitung

Handel

Konsum

- UCFA

- Export agents

- EACCE

- Customs

- Carriers

- Customs

- Wholesalers

- Retailers

- Internet traders

Actors

Functions

- Packaging

- Transport 

Airport

- Customs

formalities

- Quality

control

- Import

formalities

- Quality

control

- Packaging in

smaller vessels 

- Sale

- Further

processing

- Collection  

- Decanting

- Filtering

- Filling into

barrels

- Quality analysis

- Consumption

as Food /
Functional Food

- Use as a natural

remedy 

- Union of Women’s

Cooperatives (UCFA)

- Economic associa-

tions of women’s
cooperatives (GIE)

- Laboratories

- End consumers

Export

Collection
Treatment

Trade

Consumption

- Gathering

the fruit 

- Drying

- Storage 

- Peeling the

fruit

- Breaking open

the nut

- Sorting the

kernels 

- Roasting the

kernels

- Hand-pressing

the oil  

- Transport to

collection point 

- Collecting the oil 

- Decanting

- Filtering

- Bottling in small

quantities

(bottles/flasks)

- Product design

- Quality analysis

- Filling into plastic

bottles

- Negotiations

with clients 

- Packaging

- Despatch 

- Transport  to

souk or
roadside booth 

- Consumption as

edible oil 

- Use as cosmetic/

health product  

- Use as natural

remedy 

Functions

- Sale

- Direct  sale

- ODCO

- State

bodies 

- Forestry authority

- Communes

- Projects 

- International

certifiers 

- Universities

- Families  with

usufructuary rights

- Women’s

Cooperatives

- Family

workshops
with usufructuary
rights

- Union of Women’s

Cooperatives (UCFA) 

- Economic

associations (GIE)
of women’s coops.

- Cooperatives

- Smaller private

enterprises 

- Laboratories

- Families  with

usage rights 

- UCFA

- GIE

- Cooperatives

- Private

companies

- Families with

usufruct-
uary rights 

- International

tourists 

- Domestic

tourists 

- Urban end

consumers

- Commercial

chains

Private
companies

Cooperatives

-

Retailers

-

Grocers

-

-

-

-

-

- UCFA

- GIE

-

-

-

-

-

-

Actors

-

-

-

-

- Informal

small traders 

- Street traders

- Training/Org.

of cooperatives

- Application of

usufructuary rights

- Legislation, byelaws

for argan oil

- Quality  control

- BIO Certification

- R&D

- Projects

Marketing

Collection

Treatment

Processing

Gathering -

in the wild

Specifc
Inputs

Retail

Consumption

- UCFA

- Exportagenten

- EACCE

- Zoll

- Transporteure

- Zoll

- GroßhĂ€ndler

- EinzelhĂ€ndler

- InternethĂ€ndler

Beteiligte Akteure

Funktionen

- Verpacken

- Transport 

Flughafen

- Zollformali-

tÀten

- QualitĂ€ts-

kontrolle

- Importformali-

tÀten

- QualitĂ€ts-

kontrolle

- Verpacken in 

kleine Gebinde

- Verkaufen

- Weiterver-

arbeitung

- Sammeln   

- Dekantieren

- Filtern

- AbfĂŒllen in 

Großgebinde

- QualitĂ€tsanalyse

- Verzehr als 

Nahrungsmittel/
Functional
Food

- Verwendung 

als Naturheil-
mittel

- Union der Frauen-

Coops (UCFA)

- Ă–konomische 

Interessens-
verbĂ€nde (GIE) 
von Frauen Coops

- Labors

- Endverbraucher

Export

Sammlung

Aufbereitung

Handel

Konsum

- UCFA

- Export agents

- EACCE

- Customs

- Carriers

- Customs

- Wholesalers

- Retailers

- Internet traders

Actors

Functions

- Packaging

- Transport 

Airport

- Customs

formalities

- Quality

control

- Import

formalities

- Quality

control

- Packaging in

smaller vessels 

- Sale

- Further

processing

- Collection  

- Decanting

- Filtering

- Filling into

barrels

- Quality analysis

- Consumption

as Food /
Functional Food

- Use as a natural

remedy 

- Union of Women’s

Cooperatives (UCFA)

- Economic associa-

tions of women’s
cooperatives (GIE)

- Laboratories

- End consumers

Export

Collection
Treatment

Trade

Consumption

Alongside a small number of individual cooperatives who use their proximity to 

the tourist routes to help their marketing efforts, the majority of women's cooperatives 
have formed umbrella organisations to treat and market the oil. In 1999 the first 
amalgamation of 5 women's cooperatives from four Arganeraie provinces, with the 
name "Union of Women's Cooperatives of the Arganeraie" (UCFA: 

Union des 

Coopératives des Femmes de l'Arganeraie

) was founded with the help of the GTZ. The 

UCFA's main aim is to market high-grade argan oil from the Arganeraie biosphere 
reserve to obtain adequate income for the cooperative members. In 2002 the UCFA 
represented the interests of 13 rural women's cooperatives. Twelve further women's 

41

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

cooperatives intend to become members of the UCFA in 2006. Since mid 2005, with 
support from the "Projet Arganier" initiative, which in turn is financed by the 

Agence de 

DĂ©veloppement Social

 (ADS) and the European Commission (EC), further 

amalgamations of traditionally working women's cooperatives, known as "Groupement 
d'InterĂȘt Economique" (GIE) have been formed for the purpose of promoting the 
marketing of argan oil in the Arganeraie region. 

The UCFA collects the oil, decants it over several days and then filters it in a 

modern filtration plant. Filling into bottles for the national market is done in a small 
bottling plant. The oil goes into larger containers of 5l each for export. Samples are 
taken at regular intervals from the collection containers of the individual cooperatives 
and are examined at a state-approved laboratory in Agadir, whereby the quality of the 
oil is checked against the prescribed national standard.

64

 The UCFA holds regular 

hygiene courses for the cooperative members. It also coordinates the annual 
monitoring of the cooperatives which is carried out by an internationally recognised 
certification company, in line with the EU Regulation on Organic Production. The 
cooperatives receive approx. 12 Euro per litre of oil from the UCDA and also share in 
the profits. 

The UCFA sells the hand-pressed argan oil on the domestic market in 

containers of 0.75l or 3.75l, for a price of 20 Euro per litre under the registered brand 
name "Tissaliwine". The buyers are big commercial chains or retailers. Argan oil is 
expensive compared with other edible oils. Consumers are therefore households with 
high disposable income in Morocco's bigger cities. Here it comes into competition with 
the cheaper, mechanically-pressed argan oil from the private companies. This oil does 
not always have the same high quality since it is made from purchased kernels, whose 
origin (pre-digested by an animal or removed from the fruit) cannot always be 
adequately traced. 

At present the UCFA is the main exporter of hand-pressed argan oil. In future, 

the newly-established amalgamations of women's cooperatives (GIE) will take this 
marketing route as well. Monitoring of the goods being exported is the responsibility of 
the

Etablissement Autonome de ContrĂŽle et de Coordination des Exportations

(EACCE), which guarantees that foodstuffs produced in Morocco conform with 
international market guidelines. It regularly tests oil samples of the produce being 
exported. As there was neither a national nor an international norm for argan oil prior to 
2004, the test samples were measured against the existing olive oil standards. At the 
beginning of 2005 the Moroccan standards authority - 

Service de Normalisation 

Industrielle Marocaine 

(SNIMA) - published the Moroccan standard for argan oil (NM 

08.5.090). Up to now, however, it is not yet legally binding. 

The oil goes primarily to retailers, wholesalers and online traders in Europe. The 

hand-pressed argan oil is sold as an organic product in Europe. It is consumed as a 
premium edible oil or functional food, since it is scientifically proven to reduce 
cholesterol, or used as a natural remedy (pharmacies). The end users are 
predominantly food and/or health-conscious consumers (BIO, Slow Food, etc.) as well 
as gourmets and upmarket restaurants. 

                                                

64

   Moroccan Standard NM 08.5.090 

42

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

4.2.2  Value Chain: Mechanically-Pressed Argan Oil 

The mechanisation of argan oil production began in the mid 1990s with the use 

of locally developed, simple shelling and roasting facilities, as well as the import from 
Germany of screw presses and their reproduction in Morocco. These changes were 
driven by private enterprises in Casablanca, France and Switzerland as well as by 
researchers at the various Moroccan universities. 

With funding from international donors (incl. Canada, Belgium, OXFAM, the 

Principality of Monaco), the 

Association Ibn-Al Beithar

 has since 1995 been 

accompanying the establishment of an initial six semi-mechanised women's 
cooperatives. In total, there are now ten such cooperatives in operation. In contrast to 
the traditional women's cooperatives, the semi-mechanised cooperatives are usually 
located on the main tourist routes and not in the areas where the argan fruit is 
gathered. This means that, in addition to whatever fruit the members have themselves 
gather, fruit also has to be bought in, so that the high capacity of the presses can be 
fully exploited. 

Apart from the semi-mechanised cooperatives, there were 16 mechanically-

operating, private oil presses at the end of 2005, five of which are the market leaders 
with headquarters and production facilities in Casablanca.

65

Through the mechanisation of the pressing process, two new raw material 

markets have been formed: the market for argan fruit, which primarily supplies the 
semi-mechanised women's cooperatives, and the market for argan kernels, which are 
bought by the private oil presses. Differently to the hand-pressing process, the rural 
families who have usufructuary rights in the main argan-growing areas of the 
Arganeraie are purely suppliers of the raw material. The 

Association Ibn-Al Beithar

 has 

been trying since 2004 through the formation of so-called 

CoopĂ©ratives de Concassage

(Women's Cooperatives for breaking open nuts), to bypass the intermediate traders 
and wholesalers and to link the argan-growing areas with the oil presses of the semi-
mechanised cooperatives, also an important factor in terms of organic certification. 

To ensure that kernels pre-digested by goats or other ruminants are not used 

for oil production, the semi-mechanised women's cooperatives buy dried fruit or 
process the kernels supplied by the 

Coopératives de Concassage

. Dried fruit offer the 

advantage that they can be stored for up to five years. They provide work to the 
cooperative members and to women's groups who sub-contract their labour to the 
cooperatives, as this work process is not yet mechanised. A woman's maximum daily 
output working 8 hours non-stop, is 21kg, i.e. 1.5kg of kernels. The women receive 
between 35-45 Dhs (3-4 Euro) per kilo of kernels. Purchase of the fruit from the 
families with usufructuary rights is primarily in the hands of the wholesalers, who work 
with a network of small buyers. These, in turn, buy directly from the families or at the 
local markets of the main growing areas in the Arganeraie. The direct purchase of fruit 
by buyers working for the women's cooperatives is rare, owing to a lack of funds for 
pre-financing the purchases. 

                                                

65

   It is estimated that private companies sell twice as much argan oil on the official domestic market than 

do the cooperatives and their amalgamated organisations. 

43

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 12: Value Chain: Mechanically-Pressed Argan Oil in Morocco 

- Gathering

the fruit 

- Drying

- Storage 

- Peeling the

fruit

- Breaking open

the nuts

- Sorting the

kernels 

- Roasting the

kernels

- Sale to the

cooperatives

- Transport to

local market 

- Mechanical pressing 

- Decanting

- Filtering

- Bottling in small

quantities

(bottles/flasks)

- Product design

- Quality analysis

- Direct  sales 

- Negotiation

with clients

- Despatch 

- Processing into

cosmetics

- Consumption as

edible oil 

- Consumption as

food supplement

- Use as a

cosmetic

Functions

- Sale

- Direct  sale

- State and

semi-state
bodies

- Communes

- International

certifiers

- Universities

- Machinery

suppliers

- Families  with

usufructuary rights

- Women’s

Cooperatives

- Family

workshops
with usufructuary
rights

- Women’s

Cooperatives

- UCFA.

Private
enterprises 

- Laboratories

- GIEs

-

- Women’s

Cooperatives

-

Private
companies

- Tourists 

- Urban end

consumers

- GIE

UCFA

Hotel chains

Commercial
chains

-

-

-

-

-

- UCFA
-

-

-

-

Actors

-

-

-

- Retailers

- Training/Org.

of cooperatives

- Application of

usufructuary rights

- Legislation, byelaws

for argan oil

- Quality control

- BIO Certification

- Purchase of machinery

- R&D

Marketing/
Processing II

Processing I

Kernel

Production

Gathering

in the wild

Specifc
Inputs

Trade

Consumption

- UCFA

- Exportagenten

- EACCE

- Zoll

- Transporteure

- Zoll

- GroßhĂ€ndler

- EinzelhĂ€ndler

- InternethĂ€ndler

Beteiligte Akteure

Funktionen

- Verpacken

- Transport 

Flughafen

- Zollformali-

tÀten

- QualitĂ€ts-

kontrolle

- Importformali-

tÀten

- QualitĂ€ts-

kontrolle

- Verpacken in 

kleine Gebinde

- Verkaufen

- Weiterver-

arbeitung

- Sammeln   

- Dekantieren

- Filtern

- AbfĂŒllen in 

Großgebinde

- QualitĂ€tsanalyse

- Verzehr als 

Nahrungsmittel/
Functional
Food

- Verwendung 

als Naturheil-
mittel

- Union der Frauen-

Coops (UCFA)

- Ă–konomische 

Interessens-
verbĂ€nde (GIE) 
von Frauen Coops

- Labors

- Endverbraucher

Export

Handel

Konsum

- Private

companies.

- UCFA/GIE

- EACCE
- Customs

- Carriers

- Wholesalers

- Online traders

- Cosmetic manufacturers

- Natural remedy

manufacturers

Actors

Functions

- Packaging

- Transport 

Airport

- Customs

formalities

- Quality

control

- Import

formalities

- Quality control

- Packaging in

small vessels 

-

Processing into
cosmetics/
food supplement/
natural remedy

- Sale

- Consumption

as Food

Consumption as
food supplement

- Use as cosmetic

- End consumers

Export

Trade /
Processing

Consumption

Sale of fruit 

-

Processing into
natural remedies

-

Use as natural
remedy 

-

Repair
services

-

Buyers

-

Wholesalers

-

- Cooperatives

Women’s groups/
workshops

Buyers

Wholesalers

-

-

-

-

Use as natural
remedy

-

Food supplement
manufacturers

-

Packaging 

-

Private
companies

-

- Gathering

the fruit 

- Drying

- Storage 

- Peeling the

fruit

- Breaking open

the nuts

- Sorting the

kernels 

- Roasting the

kernels

- Sale to the

cooperatives

- Transport to

local market 

- Mechanical pressing 

- Decanting

- Filtering

- Bottling in small

quantities

(bottles/flasks)

- Product design

- Quality analysis

- Direct  sales 

- Negotiation

with clients

- Despatch 

- Processing into

cosmetics

- Consumption as

edible oil 

- Consumption as

food supplement

- Use as a

cosmetic

Functions

- Sale

- Direct  sale

- State and

semi-state
bodies

- Communes

- International

certifiers

- Universities

- Machinery

suppliers

- Families  with

usufructuary rights

- Women’s

Cooperatives

- Family

workshops
with usufructuary
rights

- Women’s

Cooperatives

- UCFA.

Private
enterprises 

- Laboratories

- GIEs

-

- Women’s

Cooperatives

-

Private
companies

- Tourists 

- Urban end

consumers

- GIE

UCFA

Hotel chains

Commercial
chains

-

-

-

-

-

- UCFA
-

-

-

-

Actors

-

-

-

- Retailers

- Training/Org.

of cooperatives

- Application of

usufructuary rights

- Legislation, byelaws

for argan oil

- Quality control

- BIO Certification

- Purchase of machinery

- R&D

Marketing/
Processing II

Processing I

Kernel

Production

Gathering

in the wild

Specifc
Inputs

Trade

Consumption

- UCFA

- Exportagenten

- EACCE

- Zoll

- Transporteure

- Zoll

- GroßhĂ€ndler

- EinzelhĂ€ndler

- InternethĂ€ndler

Beteiligte Akteure

Funktionen

- Verpacken

- Transport 

Flughafen

- Zollformali-

tÀten

- QualitĂ€ts-

kontrolle

- Importformali-

tÀten

- QualitĂ€ts-

kontrolle

- Verpacken in 

kleine Gebinde

- Verkaufen

- Weiterver-

arbeitung

- Sammeln   

- Dekantieren

- Filtern

- AbfĂŒllen in 

Großgebinde

- QualitĂ€tsanalyse

- Verzehr als 

Nahrungsmittel/
Functional
Food

- Verwendung 

als Naturheil-
mittel

- Union der Frauen-

Coops (UCFA)

- Ă–konomische 

Interessens-
verbĂ€nde (GIE) 
von Frauen Coops

- Labors

- Endverbraucher

Export

Handel

Konsum

- Private

companies.

- UCFA/GIE

- EACCE
- Customs

- Carriers

- Wholesalers

- Online traders

- Cosmetic manufacturers

- Natural remedy

manufacturers

Actors

Functions

- Packaging

- Transport 

Airport

- Customs

formalities

- Quality

control

- Import

formalities

- Quality control

- Packaging in

small vessels 

-

Processing into
cosmetics/
food supplement/
natural remedy

- Sale

- Consumption

as Food

Consumption as
food supplement

- Use as cosmetic

- End consumers

Export

Trade /
Processing

Consumption

Sale of fruit 

-

Processing into
natural remedies

-

Use as natural
remedy 

-

Repair
services

-

Buyers

-

Wholesalers

-

- Cooperatives

Women’s groups/
workshops

Buyers

Wholesalers

-

-

-

-

Use as natural
remedy

-

Food supplement
manufacturers

-

Packaging 

-

Private
companies

-

The kernel market is primarily based on personal relationships between 

producers and traders. The kernels are produced by the families with usufructuary 
rights, whereby it cannot be ruled out that they also mix in kernels which have been 
pre-digested by their livestock. The buyers ex-farm are often acquaintances or relatives 
of the family, whilst the wholesaler does his buying at the local weekly markets (souks). 
The owners of private, mechanical presses and retails are regular buyers of the 
kernels. This means that the private presses leave the peeling and breaking open of 
the nuts to the family enterprises. In 2005, a family would receive between 15-20 Dhs 

44

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

(1.40-1.80 Euro) per kilo of kernels. Unlike the dried fruit, the kernels cannot be stored 
for long,

66

 although this also depends on the right storage (dark and dry).  

The private companies and the cooperatives work with screw presses. Only one 

private company is known to work with industrial plant which obtains the argan oil 
through solvent extraction (e.g. with hexane)

67

.

Two types of oil are manufactured: 

Â

Oil from roasted kernels (edible oil) and  

Â

Oil from unroasted kernels which is primarily used for cosmetics, as a food 
supplement or as an edible oil (USA). 

A screw press can produce up to 50l of argan oil per day. For this, 120kg of 

kernels or 1,720kg of dried fruit are required. About twice as much oil can be extracted 
from unroasted kernels using mechanical-pressing as by hand-pressing. The UCFA 
works with a screw press to extract cosmetic oil from unroasted kernels. Filtering and 
bottling is also done mechanically. Young women or men with professional training are 
responsible for the operation and maintenance of the presses. 

The semi-mechanised women's cooperatives sell the edible and cosmetic oil 

directly at the production site to international tourists or sell it in Morocco via retailers 
and hotel and commercial chains. In 2004 the first four cooperatives formed the GIE 

Targanine

. In 2005, two further semi-mechanised women's cooperatives were founded. 

These registered GIEs (economic interest groups) sell the oil products of the member 
cooperatives within Morocco but their main target is international sales. Like the UCFA, 
they assure quality and organic certification, deal with export formalities with the help of 
agents, make contacts and source new clients. The edible oil is bought by wholesalers, 
retailers and online traders, whilst the oil from the unroasted kernels is sold to 
processing industries (manufacturers of cosmetics, natural remedies and food 
supplements) in Europe, Canada/USA and Japan. 

The big private oil presses process part of the oil from unroasted kernels into 

cosmetic products (soap, skin cream, shampoo, etc.) and a smaller quantity into 
natural remedies (creams for the treatment of skin problems). A further part of the oil is 
sold directly as oil for the skin or is sold blended with aromatic oils. A few private 
companies sell their products in their own shops in the tourist areas or cities; others 
supply the retail trade, bigger commercial and hotel chains, as well as duty free shops 
and airlines. As they buy in the raw material very cheaply, they are in a position to offer 
their products at a much lower price than the manufacturers who work by hand. In 
addition, the private companies have easier access to loans, are better organised and 
do not need to pay so much attention to social aspects. In spite of inadequate 
verification of the gathering areas, the private companies were given organic 
certification under EU Regulation No. 2092/91. 

The private companies sell their products under both their own names and 

under brand names whereby the image of oil-producing women in the Arganeraie has 
found its way into commercial advertising, without these women having any share in 
the added value. Thus the image of the producers of a high-grade, premium end 

                                                

66

   Max. 3 weeks according to Charrouf 

67

   pursuant to SNIMA (

Service de Normalisation Industrielle Morocaine

) standard, this oil is not allowed to 

be designated as argan oil. This standard is, however, not yet legally binding. 

45

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

product is being used to market cheap oil from the private presses in Casablanca, 
Marrakesh and Agadir. 

The end user group for mechanically-pressed oil in Morocco and abroad is the 

same as that which buys the hand-pressed oil. The end consumer is often unaware of 
the difference between the oils in terms of quality, or the varying levels of labour-
intensiveness required to produce each type. 

4.3  Support Measures and Findings in Argan Oil Production 

Since the beginning of the 1990s Moroccan state institutions, in cooperation 

with international donors and NGOs, have been promoting the production, processing 
and marketing of argan oil. 

The GTZ-supported project, 

Conservation et DĂ©veloppement de l'Arganeraie

(PCDA) was active in the Arganeraie from 1995 to 2002. Its main aim was the creation 
and implementation of a framework plan for the recognition, through UNESCO, of the 
region as a biosphere reserve. This framework plan was worked out in conjunction with 
state, semi-state and nongovernmental bodies, private individuals and the rural 
community. In December 1998, the Arganeraie was recognised as a biosphere 
reserve. The development strategy within the framework plan foresaw an increase in 
the value of existing potential in the region, consistent with the principles of nature 
protection and landscape conservation. Economic forms which distinguished 
themselves through environmental-friendliness and management of natural resources 
were given priority. Alongside the production of single-flower honey and young 
fattening goats, the production of hand-pressed argan oil was considered to be 
particularly suitable in terms of increasing family income and contributing to the 
conservation  of the argan tree population. 

Apart from the demarcation of the forest domains within the Arganeraie, 

however, the framework plan for the biosphere reserve had still not been implemented 
by the beginning of 2006.The state, semi-state and communal organisations have been 
unable to reach agreement on competencies. There is a danger that the inability of 
these bodies to reach agreement may lead to the loss of biosphere reserve status in 
2008.

Domestic research institutions, in cooperation with their international 

counterparts, played an important role in the development of argan oil products. Since 
the beginning of the 1970s, this research has achieved significant results: 

Â

die plant sociology of the Arganeraie has been catalogued,  

Â

the geographic distribution of 

Argania spinosa

 is known, 

Â

the phenology and physiology of 

Argania spinosa

 has been researched,  

Â

the genetic structure has been investigated,  

Â

the propagation method of 

Argania spinosa

 is known today,  

Â

the regeneration characteristics and the husbandry of existing stocks have 
been improved,

Â

the various uses of the argan tree and the related sociological aspects have 
been described, 

Â

the chemical and dietetic composition of the kernels, the argan oil and the 
secondary products such as pulp, oilcake and shells have been investigated,  

Â

the pharmacological and cosmetic uses of the oil, its secondary products and 
other parts of the plant (leaves, flowers and bark) have been investigated, 

46

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Â

oil production has been further mechanised. 

Experience shows, however, that the rural population of the Arganeraie are only 

rarely involved in research activities and are hardly ever informed about the findings. 
Research findings are primarily used for scientific purposes, for publications, or for the 
patenting of active ingredients by domestic researchers. 

Research activities aroused domestic and international interest in argan oil and 

the land usage system in the Arganeraie. With the assistance of international donors, 
as well as international and domestic NGOs, the establishment of women's 
cooperatives was supported in close cooperation with the forestry authorities and the 

Office de Développment des Coopératives

. Awareness was created amongst men and 

women, using participative methods, and they were then involved through the 
formation of so-called 

Associations de DĂ©veloppment

 (village development 

associations). These associations accompanied and supported the establishment of 
the women's cooperatives whose members, by and large, could neither read nor write, 
and spoke only Berber. The involvement of the men was particularly important, as 
without their approval, there would have been no access to the women. Three types of 
women's cooperative were established: 

1. 

Women's cooperatives set up in the main argan-growing areas, producing 
hand-pressed argan oil; 

2. 

Women's cooperatives in semi-urban areas, producing mechanically-pressed 
argan oil; and 

3. 

Women's cooperatives in the main argan-growing areas, supplying kernels to 
the cooperatives in semi-urban areas - so-called 

CoopĂ©ratives de 

Concassage

.

For cooperatives to function well it is imperative that annual general meetings 

are held every year to present the annual report and accounts, to approve the actions 
of the Board, to create a working plan for the following year and to provide the 
opportunity to de-select the Board. To date, hardly any of the cooperatives hold an 
Annual General Meeting, although they are required to do so by law. As such, the 
Boards of many cooperatives have neither given account of themselves since 
establishment, nor have they have been re-elected or replaced. Between 1997 and 
2000 PCDA, together with the state agency 

Office de DĂ©veloppement des 

Coopératives

 (ODCO) provided courses to the cooperatives in the areas of cooperative 

principles, internal organisation and management of cooperatives, hygiene and organic 
certification. 

Basic and further education in the form of functional literacy training and 

practice-oriented advanced training course are important elements of the development 
and broadening of the abilities of the female cooperative members. They are a 
prerequisite for the functioning of the women's cooperatives in the Arganeraie. 
Alongside courses on general management of cooperatives, there is also training in the 
workflow organisation in oil production (by hand or mechanical), hygiene, product 
quality, economics and marketing, planting of tree nurseries, planting and care of argan 
trees and conservationist harvesting of the fruit. To assure the women's participation at 
these educational events, it was important that the courses fitted into the women's daily 
schedule. Whist working for the 

Association Ibn-Al Beithar

, the national NGO, 

Centre 

National de Développement et d'Alphabétisation

 (CNDA) found that the following 

factors have a particular influence on achieving effective learning: 

47

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Â

the use of well-trained female trainers from the region, who get regular 
coaching;

Â

the use of tested visual aids; 

Â

the active participation of the women in the course; and 

Â

a sufficiently long duration for the training measures accompanied by 
systematic tracer studies to monitor learning effectiveness. 

The CNDA intends to continue this approach as part of its cooperation with the 

ADS/European Commission 

Projet Arganiers

 and the Mohammed V Foundation. 

The material project assistance given to the traditional cooperatives was limited 

to instruments for the improvement of work processes and hygiene and the provision of 
containers for the collection and decanting of oil and of sacks for the kernels. The 
practicality of shelling and roasting machines was successfully tested with selected 
cooperatives of this type. Women's cooperatives were furnished with these machines 
and other means of production at the end of 2005 under 

Projet Arganier

 subsidy 

agreements.

The equipping of the semi-mechanised women's cooperatives (shelling and 

roasting machine, screw press, filtering equipment, filling and capping machinery, etc.) 
was 100% financed by donors. This occurred mostly without either cost-benefit 
analysis or any concept for the medium-term independence of the cooperatives being 
undertaken. Owing to a lack of good operation and maintenance, the service life of the 
machines, especially the press, was very short. This meant that the cooperatives were 
dependent on external financing or subsidies. In addition, this type of cooperative 
requires a high level of management experience to coordinate the various processing 
steps and the maintenance of the machinery. Because of their professional training and 
language knowledge, female managers in some cases not only take care of the day-to-
day running of the business but also fulfil the role of directors. As such, the cooperative 
members are restricted to fulfilling work duties. The members therefore have more 
opportunities within the traditional women's cooperatives which are striving to progress 
towards mechanisation with their own efforts. 

Since the end of 2004, the 

Projet Arganier

 has been working with 

representatives of the women's cooperatives, research experts and the private sector 
to create a good practices guideline for argan oil production (

Guide des Bonnes 

Pratiques de Fabrication

) for both types of pressing. This guideline is to be published 

and distributed in mid 2006. It represents an important cornerstone for the development 
and implementation of hygiene standards pursuant to HACCP (Hazard Analysis and 
Critical Control Point). 

For the sustainability of the women's cooperatives, it is important that the oil is 

sold for a price which guarantees adequate payment to the members, covers the 
cooperative's management costs and contributes to the creation of a working fund. To 
facilitate market access for the traditional women's cooperatives, the Association of 
Women's Cooperatives in the Arganeraie (UCFA) was set up in June 1999 with support 
from the GTZ. At the outset, the UCFA received working capital and all necessary 
equipment from the GTZ. It also received support with regard to organic certification, to 
treat, bottle and market the argan oil produced by the cooperatives. An oil press was 
installed for the manufacture of argan oil from unroasted kernels. The technical advice 
given to the UCFA in the areas of organisational development, economics, marketing, 
labour organisation and product quality was provided for a period of three years. The 

48

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

UCFA which, initially had little experience, only survived economically thanks to the 
working capital supplied by the GTZ, occasional assistance from the GTZ's next 
programme "

Programme d'Appui Ă  la Mise en Oeuvre du Plan National de la Lutte 

Contre la DĂ©sertification PAN LCD

), donations from the Mohammed V Foundation and 

the involvement of Moroccan female ex-project workers. A partnership agreed in 2004 
(private-private partnership) with a German marketing company, which also advises the 
Union, led to the sustained strengthening of the UCFA. 

Further women's cooperatives with the aims of joint marketing, product 

development, creation of a common sales network, the bundling of equipment 
purchasing and joint certification, were set up in 2004 and 2005 with the support of the 

Association Ibn-Al Beithar

 and the 

Project Arganier

. External decision-making by the 

support agencies and an unclear concept let to the withdrawal of the two biggest 
cooperatives one year later, and their subsequent amalgamation with other 
independent cooperatives to form a new GIE. 

At the end of 2004, 28 cooperatives set up the National Association of Women's 

Cooperatives in the Arganeraie (ANCA) with support from the 

Projet Arganier

. As the 

representative of the interests of all member cooperatives, ANCA's job is to strengthen 
the position of the cooperatives within the argan oil sector at regional and national level 
and to formulate and represent support measures vis-Ă -vis state and semi-state 
bodies. The establishment of ANCA was preceded by a long sensitisation campaign in 
which conflicting aspects, born out of differing development histories and loyalties to 
the individual cooperatives, had to be reconciled to reach a common purpose. In order 
to create a sustainably independent organisation, it was important that external 
decision-making by the former support agencies and male-dominated village 
associations be reduced to a minimum, so that autonomous development could take 
place.

The institutional framework for the production and marketing of argan oil has 

been strengthened by technical advice from the competent Moroccan state agencies

68

in working out the Moroccan product standard for argan oil (NM 08.5.090) and through 
the creation of Moroccan legislation on protected geographic designations of origin (IG, 
AOP, AOC) and ecological standards (Regulation on Organic Production). Technical 
advice is provided by the 

Association Ibn-Al Beithar

, researchers at the Universities of 

Rabat, Casablanca and Agadir, the Mohammed VI Foundation (for research into and 
safeguarding of the Arganeraie), the 

Project Arganier

 and the 

Institut National des 

Appellations d'Origine

 in Paris (INAO). Together with ANCA, these actors at the same 

time tried to persuade the state bodies to introduce an export ban on unprocessed raw 
material (argan fruit, nuts and kernels). 

With regard to inputs, support measures along the value chain focused on 

research, the formation of women's cooperatives and organic certification. In the areas 
of oil processing and treatment, resources and machinery were provided. In the area of 
marketing, the creation of cooperative umbrella associations was promoted. Economic 
areas (cost calculation and price structure), quality management, strategic marketing, 
negotiating and export were accorded less importance. Because of increasing exports 
of argan oil to Europe, Japan, Canada and the USA and the related requirement and/or 

                                                

68

   such  as 

Direction de la Protection des VĂ©gĂ©taux, des ContrĂŽles Techniques et de la RĂ©pression des 

Fraudes (DPVCTRF), Office Marocain de la PropriĂ©tĂ© Industrielle et Commerciale (OMIC), Service de 
Normalisation Industrielle Marocaine (SNIMA)

 and 

Etablissement Autonome de ContrĂŽle et de 

Coordination des Exportations (EACCE) 

49

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

verification that international labelling regulations and quality standards are being 
observed, efforts are being made to improve the domestic legal and institutional 
framework.

4.4  Results and Impact of Support Measures in Argan Oil 

Production

The inventorisation of the Arganeraie which took place as part of the creation of 

the framework plan for the Arganeraie Biosphere Reserve led, with the involvement of 
the local population, to the identification of state-owned argan tree stocks, which are 
protected by formal usufructuary rights. The number of argan tree seedlings in state-
owned and newly created private tree nurseries in the Arganeraie has risen 
considerably. Alongside the state forestry services, the seedlings are also used by the 
women's cooperatives, associations for local development and local authorities to plant 
argan trees on private and publicly-owned land. Some private presses based outside 
the Arganeraie advertise for tree sponsorship on the internet to fund new planting. 

The number of women's cooperatives producing argan oil in the Arganeraie is 

continuously increasing. At the end of 2005

69

 around 70 cooperatives were registered 

with the 

Office de Développment des Coopératives

 and further women's cooperatives 

are waiting for accreditation. The majority of cooperatives established since 2004 
belong to the 

coopératives de Concassage

, which supply kernels to the semi-

mechanised cooperatives. Alongside the number of new start-ups, membership in the 
existing women's cooperatives is also on the rise, whereby traditional and semi-
mechanised cooperatives have about the same level of membership. 

In 2005, aside from the UCFA set up in 1999, there were three further 

cooperative associations (GIE). The UCFA will be accepting as members 12 further 
cooperatives who produce hand-pressed argan oil and will thus increase its 
membership from 500 to 1,000 women. The cooperative associations in urban 
locations have very obvious competitive advantages over the individual cooperatives, 
especially in the areas of sales, marketing, quality control, product certification and 
export, and are more difficult to force out of the market. The four cooperative 
associations represent the interests of around 35 women's cooperatives. 

The majority of newly-accredited cooperatives have applied for membership of 

the umbrella association, 

Association Nationale des Coopératives d'Argane

 (ANCA) 

which was set up by 28 cooperatives in November 2004. Both ANCA and female 
representatives of the cooperative associations are actively involved in establishing 
production standards for argan oil in order to obtain protected designations of origin (IG 
or AOC) and are calling for a legal ban on the export of raw materials. 

In order to increase the production of high-grade argan oil, a combination of initial 
provision of equipment to the women's cooperatives, use of the quality handbook 

Guide de Bonnes Pratiques de Fabrication

, establishment of a working fund for the 

replacement of machinery, and suitable basic and further training programmes were 
required. The 13 member cooperatives of the 

Union des CoopĂ©ratives des Femmes de 

l'Arganeraie

 (UCFA) were able to increase their monthly output of hand-pressed argan 

oil from 500l in 2002 to 3,000l at the end of 2005. 

                                                

69

   17 cooperatives were accredited in 2000. 

50

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

According to statements by the cooperatives and their associations, sales 

figures have risen considerably in the last two years. The UCFA was able to increase 
its annual sales figure from around 5,500l in 2002/2003 to about 13,000l in the 
2004/2005 business year. In the first three months of the 2005/2006 business year 
alone, it sold 9,500l. Over 90% of production goes to Germany under the terms of a 
private-private partnership. 

Increased sales turnover and fast payment of exports means that the UCFA can 

pay its member cooperatives on a regular basis (domestic payments are often made 
only three months after delivery). This turnover also increases their annual profits 
which are distributed amongst the member cooperatives and form the basis of their 
reserves for future investments. 

On the regional and national markets, the traditional and semi-mechanised 

cooperatives sell their edible oil in 250ml or 375ml bottles for between 25-40 Euro per 
litre; cosmetic oil is sold in 60ml flacons for about 5 Euro. In contrast, the private 
companies sell their edible oil for about 20 Euro per litre and the cosmetic oil for around 
half the price per flacon on the national market. There are obvious differences in quality 
between the two production groups. Thus, for example, the women's cooperatives are 
vigilant in ensuring that kernels pre-digested by livestock are not processed. This 
quality characteristic is less important to the Moroccan end consumers, but is all the 
more important in the area of export (see quality requirements). 

51

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 13: Value Chain: Argan Oil in Morocco 

Promotion and 
organisation of 

women's 

cooperatives in 

rural and periurban 

areas

Inventorising of the 

Arganeraie and 

regeneration of 

argan tree stocks

Promotion of 

cooperative

associations and 

an umbrella 

association

Creation of pratice-

oriented basic and 

advanced training 

programmes for the 

women's 

cooperatives

Increased production of high-grade 

oil, which corresponds with 

international quality standards

Women's

cooperatives

established and 

operational

Quality standard / 

Labelling regulations 

correspond with 

requirements of value 

chain; export of raw 

material banned 

Number of 

cooperatives and 

of  members per 

cooperative

increased

State argan tree 

stocks identified, 

argan trees 

planted by 

cooperatives,

associations and 

local authorities, 

conservationist

harvesting of fruit 

Support Measures 

Cooperatives furnished 

with resources and 

creation of 

Guide de 

Bonnes Pratiques de 
Fabrication de l'Huile 

d'Argane

Improvement of 
institutional and 

legal framework 

Results 

Impact 

Annual profit, distribution of 

profits and reserves increased 

GBPF applied/ 

Research findings 

documented / 

reserves for 

machine

replacement created 

Umbrella association 

takes over lobbying 
function / Research 

findings used for 

product development 

and marketing 

Basic and 
advanced

training

programmes 

implemented

Existing argan tree stock actively 

protected, private and public 

argan tree plantings increased 

Position of cooperatives 

within value chain 

sustainably improved 

Income of 

cooperative

members

increased

Degradation of the 

Arganeraie and its natural 

features reduced

Training, healthcare, clothing, etc. for rural 

and periurban families with usufructuary 

rights in the Arganeraie improved 

More women in local 

authority commitees 

and associations in 

the Arganeraie 

Poverty reduced 

Higher oil sales figures / Increased customer 

loyalty / organic certification facilitated 

In view of increasing demand for high-quality argan oil and the rising number of 

women's cooperatives in rural and periurban areas, the active involvement of families 
with usufructuary rights in the protection of existing argan tree stocks is growing. Since 
they exercise pressure of public opinion on the local authorities, the latter have to find 
other sources of income apart from the sale of wood from publicly-owned argan stocks. 
Hundreds of hectares of argan forest are going to have to make way for the planned 
Marrakesh-Agadir motorway. According to the competent authorities, for each tree 
felled another is to be planted elsewhere. It will be the job of ANCA and other 
representatives of civil society to see that this promise is kept. 

Apart from the conservation of existing argan tree stocks, there are first 

initiatives at cooperative, local development association and local authority level to 
undertake new plantings on private and publicly-owned land. One indicator of this is 
increased private demand for argan tree seedlings in the state-owned tree nurseries 
and the establishment of private tree nurseries. The main difficulty is that argan trees 
need a great deal of care in the first 2-3 years after planting (watering, protection from 
animal damage). Breeding at the research institutes is aiming for faster growth, earlier 
fruit-bearing and a thinner nutshell to make it easier to crack open the nuts. 

52

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

The interest of families with usufructuary rights is explained through the positive 

effects at household level. The production of argan oil assures steady employment and 
income throughout the year. It is estimated that the majority of low-income rural 
households living in remote areas with the highest incidence of argan trees earn a 
significant portion of their annual income (up to 60%) from the sale of argan oil. 
Increasing numbers of rural households in the Arganeraie are being run by women 
because of migration of the male heads of household. For these women, argan oil is 
often the only source of income over which they themselves can dispose. 

The majority of women, and the cooperatives in the Arganeraie are opposed to 

a mechanisation of the nut-opening process, even though some actors in the private 
sector and international NGOs favour it. The rural women and those in periurban areas, 
without education or training, fear that they will be forced out of the processing sector, 
lose their jobs and lose their share in the value chain's added value. Their function 
would be restricted to harvesting. This applies to the manufacture of mechanically-
pressed argan oil. The production of hand-pressed high grade argan oil by the 
women's cooperatives, who jointly market their product, gives the rural women the 
largest share in the value creation process and thus makes an important contribution to 
both poverty reduction and the conservation of argan tree stocks. 

The distribution of labour and income along the value chain needs to be 

regulated, on the one hand, by the actors in the various production phases and, on the 
other, by the Moroccan suppliers and their international buyers. There is a danger here 
that producers of traditional products, which have been developed over centuries, will 
not receive an appropriate share of the profits for the development of the products 
when they are introduced to the international markets. These traditional products are 
sometimes sold as the innovative developments of individual marketers, who protect 
the products with patents and charge licence fees for their use, without sharing the 
profits with the local communities who have carried out the real development work. 
Examples of biopiracy have been collated by McGown (2006) and include an example 
involving argan oil.

70

 To prevent this, the ITPGRF

71

 which makes the equitable sharing 

of benefits, already agreed under the 1992 Convention on Biodiversity, internationally 
binding

72

, was signed in 2001, although its practical application is not yet very 

advanced.

4.5 Suitability of Argan Oil Production in Terms of 

Development Cooperation Objectives 

Because of the regionally limited occurrence of the multi-use 

Argania spinosa

the production of argan oil is limited to Morocco and, within that country, to the 
Arganeraie Biosphere Reserve. Argan oil is a very high quality product which is used 
both as an edible oil and for cosmetics and skincare. The Berbers have regarded it 
since time immemorial as the elixir of life, using it to preserve beauty and maintain 
health. In Morocco, argan oil is a luxury product which was only used on special 
occasions. Its traditional production by Berber women in the Upper and Anti-Atlas was 
first described by Ibn-Al Beithar in 1219. 

                                                

70

   McGown (2006), P. 16 

71

   International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRF) 

72

   http://www2.gtz.de/agrobiodiv/download/Themenblaetter/ITPGR_dt.pdf 

53

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

The market trend towards new and exotic foods and products which meet the 

consumer's health, food culture and aesthetic needs, is decisive for the development of 
the argan oil value chain at domestic and international level. This trend made it 
possible to place argan oil on the market as a premium product, thus generating added 
value within the value chain for the rural population of the Arganeraie. 

Interest from various domestic and international donors

73

 in promoting the argan 

oil value chain was stimulated in the 1990s by the results of the 1992 Rio Earth Summit 
(UN Convention on Biological Diversity, UN Convention to Combat Desertification and 
the Statement of Forest Principles) and the legends surrounding the argan tree. Initial 
efforts concentrated on protection based on use in the Arganeraie.  The promotion of 
the argan oil chain developed out of this. 

The hand-pressed argan oil value chain fulfils numerous criteria for reducing 

poverty:

Â

the majority of rural families with usufructuary rights belong to the low-income 
group in Morocco; 

Â

the beneficiaries often live in marginalised areas; the hand-pressing of oil is 
very labour-intensive; 

Â

processing does not require any great capital investment; rural women are 
familiar with the processing steps; 

Â

the families gather the raw material (gathering in the wild) and carry out 
further processing; 

Â

the technique of manual oil extraction is passed on to the daughters in the 
family;

Â

adaptation of traditional oil production to international quality standards is 
achievable through training and the use of additional simple tools; 

Â

regular income improves living conditions. 

Support measures within the value chain facilitate the equality of the sexes and 

the political, economic and social participation of women, especially in the area of 
training.

Â

the formation of the women's cooperatives and their associations to 
strengthen their market position is accompanied by practice-related basic and 
advanced training programmes for women with and without formal education; 

Â

the women's cooperative promotes communication and cooperation between 
the women of different families within a village or a community, and 
strengthens both their self-confidence and their social standing in the village 
community; 

Â

the communication of knowledge on market functions, the importance of 
marketing, negotiating and their related costs and yields, strengthen the 
economic position of women in the value chain; 

Â

the umbrella organisation, ANCA, is the representative of the political 
interests of the women's cooperatives at regional and national level. 

Support measures also contribute to the protection of the environment and 

natural resources: 

                                                

73

Association Ibn Al Beithar

, Enda Maghreb, OXFAM Canada, GTZ, ADS/EC, USAID, French and 

Belgian Embassies, Principality of Monaco, Mohammed V Foundation, Fondation 

Mohamed VI pour la 

Recherche et la Sauvegarde de l’Arganier, Fondation du Sud, Migration et DĂ©veloppement

, etc. 

54

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Â

Argan fruit continue to be gathered in the traditional manner by the rural 
population.

Â

The growing interest of the rural population in protecting and regenerating the 
argan tree stocks and planting new trees is a counterbalance to the annual 
loss of around 500 hectares of argan forest. 

Â

The sustainable cultivation of the argan tree ensures the survival of many 
plants growing in its shadow, which are used by the inhabitants for livestock 
fodder, for producing honey and for aromatic and medicinal purposes. 

Â

In December 1998, the Arganeraie region was recognised as a biosphere 
reserve by UNESCO. The reserve's framework plan foresees the designation 
of three separate zones (A, B and C) for different uses. The A zones focus on 
the conservation of self-contained forest areas, which as typical forest 
ecosystems represent conservation areas for flora and areas of sanctuary for 
fauna.

55

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Grasscutter Farming in West Africa 

5.1  Grasscutters in Context 

The natural habitats of the grasscutter are the forest and savanna regions south 

of the Sahara with precipitation of 750-1,400 mm. The wild rats prefer areas of dense 
savanna grass, light tree vegetation, the edges of damp floodplains, swampy areas, 
sugar cane plantations and fields. 

The grasscutter (or cane rat) belongs to the family of 

Thryonomys

 (also known 

as

Aulacodus, Triaulacodus

 and 

Choeromys

) and there are two species, 

Thryonomis 

swinderianus

 (great cane rat) and 

T. gregorianus 

(lesser cane rat). In Francophone 

West and Central Africa, grasscutters are known as agouti

74

. They reach weights of 

between 3 (females) and 4.5 kg (males) and feed on different savanna grasses, tree 
roots, fruit, grain and tubers. The animals reach maturity at the age of four-six months 
and bear 1-8 young per litter after a five-month gestation period. 

Their natural enemies are snakes, wild cats and other carnivores. It is man, 

however, who is responsible for the greatest decline in the wild grasscutter population. 
In many countries, grasscutters are highly sought after by hunters as bushmeat. They 
are trapped, shot or poisoned with pesticides, the latter naturally being a highly dubious 
method in terms of consumption and which explains why some consumers prefer 
farmed animals. When hunting, bushfires are set regularly to scare out the animals and 
also to give easier access to areas of dense vegetation. It is not possible to estimate 
the overall population with any real accuracy. It is, however, clear that the pressure on 
grasscutters through hunting increases with rising levels of population, whilst their 
natural habitat is being reduced by appropriation of land for human use. Hunters in 
Benin report a decline of about 50% in the grasscutter population over the last 20 
years

75

, which is more or less inversely proportionate to the increase in the human 

population.

In order to reduce the pressure on the wild grasscutter population and to exploit 

the existing economic potential through the high demand for grasscutter meat, 
breeding and farming experiments have been tried in several countries since the 
1960s, although with only limited success. In Benin, the Ministry of Agriculture started 
farming in 1980 but ran into difficulties as little was known about the biology, 
reproduction, diet and health of the animals. From 1983 the Benin breeding station was 
supported by the GTZ, which was initially involved in research into the animal, its 
subsequent breeding, its introduction to livestock owners and national distribution. 
Between 2001 - 2003 regional distribution was then promoted. Numerous other state 
and private organisations, donors and research institutes in Benin and the 
neighbouring countries are meanwhile involved in promoting grasscutter farming. 

Ghana, in particular, has meanwhile developed into a further centre for 

grasscutter farming. The number of livestock owners is also rising strongly in other 
countries, such as Nigeria. The following value chain describes farmed production. 
Supply provided by hunting wild rats is discussed only briefly. The evaluation is based 
largely on findings in Benin and Ghana. 

                                                

74

   The cane rat, however, has nothing in common with the South American agouti. 

75

   BrĂŒntrup & Aina, 1999, P. 16 

56

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

5.2  Functions and Actors in the Grasscutter Value Chain 

As it is first necessary to domesticate the wild animal before it can be farmed, 

development cooperation did not start with measures to assist livestock owners, but 
rather with intensive measures into investigating and developing this new production 
industry (see Step 1, Fig 14). In Benin, the first phase of research (1983-1994) was 
carried out at the breeding station of the Benin Ministry of Agriculture and then 
accompanied the field-work during the pilot farming projects from 1994. 

During the first research phase the breeding station was expanded. Systematic 

husbandry and breeding experiments and investigations took place with the first group 
of wild rats. This work was carried out in close cooperation with the Universities of 
Hohenheim, Cotonou, Dakar and LomĂ© as well as a laboratory for animal feed in CĂŽte 
d'Ivoire, another GTZ/EEF project. 

A major problem in the initial phase was the wildness of the grasscutters whose 

marked flight instinct led to them being in a constant state of stress. This, combined 
with diseases and lack of housing, led to initial mortality rates of up to 40%. Therefore, 
questions of animal biology, feeding and animal health were explored. Selection 
characteristics had to be defined and recording methods developed. Finally, a 
systematic breeding programme to improve the animal's suitability for farming and to 
increase production was initiated.

76

. There was clear progress made in terms of 

reducing stress in the animals; at the same time production rates and farming methods 
were improved. In 1994 it was finally possible to place the first animals bred in captivity 
in 100 rural pilot farms, to test grasscutter farming 

in situ

 and to increase the 

domesticated base group. The pilot farms were selected using strict criteria

77

 and had 

to participate in the investment costs. The pilot farmers were given intensive training. 
Production and economic data were systematically collated in each of the farms and 
the first technical advice approaches were drafted.  

Another difficulty was the development of suitable housing. Farmers and 

researchers tested various materials and housing forms and their findings were 
incorporated into the technical advice corpus. In Ghana, craftsmen (masons, 
carpenters) were specifically involved in developing housing and their experience 
played a major part in increasing productivity. 

The actual "animal breeding" component (Step 2, Fig. 14) within the new 

industrial branch of grasscutter production was developed with the selection of 22 
intensive zones. Further breeders were trained in these intensive zones and they then 
received domesticated animals from the base group for propagation purposes. To 
make technical advice more efficient, qualified pilot breeders were trained as advisors. 
With some assistance, these first groups of farmers set up the National Grasscutter 
Association in Benin. 

                                                

76

   For example litter size, reproduction rates, trustingness of the animals, weight gains, mortality. 

77

   Availability of personnel, availability of feed, good reputation in village, financial participation and willingness to 

collate M&E data. 

57

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 14: Value Chain: Grasscutter Production in West Africa 

Specific
Inputs (1)

Animal 

Breeding (2)

Animal 

Production (3)

Processing (4)

Sales (5)

Consumption (6)

Functions

Actors

- R & D 

- Breeding and 

supply of 
breeding animals 

- Support for basic 

equipment with 
cages and 
material 

- Training and 

organisation of 
breeders and 
producers 

- Veterinary service 

 - Propagation 

of 

breeding animals 

- Training and 

guidance for 
breeders 

- Training of farmers 

by breeders 

 - 

Production 

of 

animals for 
slaughter 

- Guidance for 

producers by 
qualified livestock 
owners 

- Guidance on 

organisation 

 - 

Slaughtering 

- Preserving 

- Smoking 

- Packing 

- Observation of 

hygiene standards 

  -  Sale of breeding 

animals (domestic 
and in 
neighbouring 
countries) 

- Certification of 

animals for export 

-  Sale of animals for 

slaughter 

-  Sale to commercial 

clients and 
intermediate 
traders 

 - 

Consumption 

as 

food 

- Traditional 

ceremonies 

- Researchers 

- Pilot farmers 

- Craftsmen 

 - Breeders 

- Breeding 

associations 

 - 

Small 

and 

medium-sized 
producers 

- Associations of 

producer groups 

- Semi-industrialised 

producers 

 - 

Producers 

- End Consumers 

- Processors 

 - 

Producers 

- Intermediate 

traders 

- Producer 

associations 

- Meat marketers 

- Restaurants 

 - 

Rural 

consumers 

- Urban consumers 

- Traditional cuisine, 

healers 

Specific
Inputs (1)

Animal 

Breeding (2)

Animal 

Production (3)

Processing (4)

Sales (5)

Consumption (6)

Functions

Actors

- R & D 

- Breeding and 

supply of 
breeding animals 

- Support for basic 

equipment with 
cages and 
material 

- Training and 

organisation of 
breeders and 
producers 

- Veterinary service 

 - Propagation 

of 

breeding animals 

- Training and 

guidance for 
breeders 

- Training of farmers 

by breeders 

 - 

Production 

of 

animals for 
slaughter 

- Guidance for 

producers by 
qualified livestock 
owners 

- Guidance on 

organisation 

 - 

Slaughtering 

- Preserving 

- Smoking 

- Packing 

- Observation of 

hygiene standards 

  -  Sale of breeding 

animals (domestic 
and in 
neighbouring 
countries) 

- Certification of 

animals for export 

-  Sale of animals for 

slaughter 

-  Sale to commercial 

clients and 
intermediate 
traders 

 - 

Consumption 

as 

food 

- Traditional 

ceremonies 

- Researchers 

- Pilot farmers 

- Craftsmen 

 - Breeders 

- Breeding 

associations 

 - 

Small 

and 

medium-sized 
producers 

- Associations of 

producer groups 

- Semi-industrialised 

producers 

 - 

Producers 

- End Consumers 

- Processors 

 - 

Producers 

- Intermediate 

traders 

- Producer 

associations 

- Meat marketers 

- Restaurants 

 - 

Rural 

consumers 

- Urban consumers 

- Traditional cuisine, 

healers 

Experienced breeding businesses today work as training centres. Interested 

parties take part in a 2-4 week training course in these businesses and, on completion, 
receive a group of breeding animals, allowing them to start-up their own business. After 
their initial training, former apprentices often receive further guidance and are given 
preference with regard to receiving animals from the training centres. 

Equally in Ghana, associations at provincial level have been formed with the 

help of German and other development agencies, offering services such as basic and 
advanced training, sale of animals for breeding and slaughter and specific expertise 
and inputs. 

The animals from breeding enterprises are sold at a high price in groups mainly 

comprising four female and one male animal for breeding. As grasscutter production is 
still spreading, demand for breeding animals remains very high. Only surplus male 
animals and rejected female grasscutters are sold for slaughter at a low price (Step 3 
of the value chain). The supply of animals for slaughter is therefore undertaken on the 
one hand by the breeding enterprises, who pass on all animals which cannot be used 
for breeding to the consumers for food. On the other hand, the first operations breeding 
animals for slaughter, with anything from several hundred to three thousand animals, 
have already been established. With increasing saturation of the market for breeding 
animals, the number of these production operations will increase, whilst a small 
number of specialised and well-run operations will concentrate on breeding. The 
majority of grasscutter farms are small-scale operations. In Benin, 70-80% of the farm 
operations have fewer than 100 animals and 19% have between 100-500 animals. 
Only 1% of these farms have more than 500 animals. 80% of the livestock owners are 
farmers, with the remainder being self-employed and civil servants. In Ghana, 

58

background image

Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

grasscutter farming is more recent and therefore even more small-scale, with around 
5,000 operations of which only very few have more than 100 animals. 

The number of grasscutter farmers is growing fast. In the meantime, various 

organisations have involved themselves in the spread of grasscutter farming. In Benin, 
at least eight NGOs and projects, including BØRNEfonden, Songhai (USAID, DANIDA) 
and the GTZ were involved in grasscutter farming in 2004. The regional spread of 
animals and the supply of information to the neighbouring countries were also 
supported. Ghana and Nigeria, in particular, are currently experiencing a sudden boom 
in grasscutter breeding, with support from the GTZ, Heifer International, Action Aid and 
the FAO. In Ghana, the Ministry of Agriculture has published its own grasscutter 
promotion strategy. 

Regions with very limited availability of land, where the freerange farming of 

small ruminants is restricted, are particularly suitable for the introduction of grasscutter 
farming. These areas can be both rural or on the peripheries of towns and cities. 

Although grasscutter production is largely undertaken by male livestock owners, 

it is also suitable as a source of income for women. In Benin, in 2002 12% of the 
livestock owners were women. The figure had, however, reached 18% in 2000, when 
women were actively approached by the advisors. In Ghana, women make up about 
20% of livestock owners. Many households can have access to grasscutter farming 
without resorting to subsidies. Especially poor households, however, can only enter the 
market if they are given start-up assistance. In Benin, the start-up investment is about 
75 EUR for a breeding group of four animals, 60 EUR for a 3-week training course and 
100 EUR for cages and incidentals. In Ghana, the total costs for a "starter pack" are 
estimated at around 500 EUR. 

Processing of the animals (Step 4) is still not clearly defined. The animals are 

largely sold as fresh meat or sold live for subsequent slaughter by the end buyers. 
Otherwise slaughter is carried out by the livestock owners and their assistants directly 
before sale. Only a few big producers have access to freezers. Some operators smoke 
the meat to extend its life and to diversify their product range. There is no sale of 
jointed animal parts. Nor is there any standard packaging system for transport or sale. 

Sale (Step 5) involves both breeding animals and those for slaughter. Breeding 

animals are sold by the breeders directly to other livestock owners. The breeding 
associations with their extended contacts, can act as mediators between interested 
parties (for example from neighbouring countries) and their own members, but do not 
have their own sales structure. Several thousand breeding animals, for example, have 
been supplied by Benin's breeders to Ghana, Nigeria and CĂŽte d'Ivoire. Nigerian 
producers and traders regularly come with trucks to Benin to buy wholesale. This 
regional trade is, however, made much more difficult and expensive because of 
certification and border formalities. 

The sale of animals for slaughter is usually from producer to end consumer. 

There are rarely intermediate traders from the towns to buy up animals from the 
producer. A few producers have direct contacts with commercial buyers in the towns, 
such as hotels and restaurants. The first initiatives have been started to informally sell 
smoked meat to African communities abroad. 

Grasscutter meat is expensive in comparison to other meat. Buyers are 

therefore households with high disposable income in rural and, predominantly, urban 
areas, so that livestock owners close to the towns have an advantage. Because of its 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

taste and high status, grasscutter meat is particularly popular at social events. It is also 
said to have a positive effect against gout. Traditional healers especially, favour 
grasscutter meat, with one "Nana" in central Ghana buying several hundred 
grasscutters every month for himself and his traditional ceremonies. 

Market studies and forecasts from Benin and Ghana suggest that the market for 

grasscutter meat will not have reached saturation point even in 20 years' time. It is 
estimated that 400,000 tons of bushmeat are sold in Ghana every year, about half of 
which is grasscutter meat  (about 50 million animals). All restaurants and wholesalers 
surveyed said that their sales were meeting only about one-third of demand. This 
demand will continue to rise once the relatively high price declines in line with 
increased production. 

A unique feature of the grasscutter value chain is the central role played by the 

farmers and their associations. They are the chain's linchpin. Because of extremely 
high demand, the scarcity of breeding animals and animals for slaughter and 
specialised know how in the new industry, they have been able to create a position for 
themselves, which makes it very attractive for beginners to join an association. The 
challenge facing these organisations in future will be to maintain and develop this 
position.

5.3  Support Measures and Findings in the Area of Grasscutter 

Production

Important foundations which determine the success of grasscutter farming 

today were laid during the development phase. Research work took place in multi-
disciplinary working groups, involving researchers from seven countries and with lively 
exchange between their institutions.

78

 From the outset, it was deemed important that 

the farming system should require as few external inputs as possible. The initially very 
high animal mortality rate, for example, was reduced through hygiene and balanced 
feeding. Sick animals were experimentally treated with local natural remedies. These 
measures ensured an adequate level of animal health, thus reducing the financial risk 
for the livestock owner.  In-house feed and household waste were given preference, so 
that grasscutter production was not dependent on external feed products. The 
consistent use of local materials for the barns reduced considerably the investment 
costs for barn construction, thus making farming accessible to less well-off households. 

The real viability of the new branch of industry was, however, tested in an active 

research approach, through pilot farms. Here, it was extremely important that the right 
farmers be chosen: those who were willing to make an investment; participate 
creatively in problem-solving; and involve themselves in the intensive collection of data. 
Only the strict application of these selection criteria permitted the selection of an initial 
group of 100 pilot farms which, as a consequence, had a discontinuation rate of under 
10%. A first group, which had been selected by the state advisory service was less 
successful and had a discontinuation rate of 37%. The farmers involved had high 
subsidy expectations and were less willing to make a personal commitment. 

                                                

78

  CollĂšge Polytechnique Universitaire (CPU/ UAC), FacultĂ© des Sciences Agronomiques (FSA/UAC), 

Institut National de Recherche Agricole du BĂ©nin (INRAB), UniversitĂ© du BĂ©nin, Togo, Hohenheim 
University,Germany; University of Lille,France, University of Dakar, Senegal, University of Abidjan, 
CĂŽte d'Ivoire, University of  Ibadan, Nigeria. 

60

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

It was possible to achieve important progress and collect necessary basic data 

with the pilot farmers, using a systematic monitoring system which employed new 
methods and new operational and economic parameters. In this intensive introductory 
phase, it was important that the pilot farms were located close to the project and the 
breeding station. This concentration of the new breeders in 22 intensive zones allowed 
lively exchange amongst themselves and intensive individual support and guidance by 
the project. This meant that advisory costs could be kept down and the capacity of the 
breeding stations for baseline breeding extended. 

In order to quickly increase the diffusion of grasscutter farming, somewhat 

different criteria were required for the choice of suitable candidates

79

 and adjustments 

had to be made to the advanced training approach. Initially all interested parties were 
given a four-week intensive training course at the breeding station. After construction of 
their own barns, they then received a breeding group for which they had already made 
a down payment. This very intensive training in the initial phase promoted the creation 
of training modules and material, which were also of use later on. The training was, 
however, only available to those people who could afford to spend the time and money 
on a month-long advanced training course. Apart from that, the training facilities at the 
breeding station were very limited. 

It proved possible to increase capacity considerably by involving successful 

breeders in training. Using the project's existing training material, successful breeders 
intensively trained new farmers on their own farms in 2-3 weeks. Afterwards, the 
trainees received monthly, and later quarterly, coaching visits from their trainers. The 
trainees pay the trainers either with money or with labour. The trainees receive their 
first breeding group on completion of training from the "Master" farms. Access to 
training was greatly eased by this "farmer to farmer coaching", as the training farms 
were located in villages and the duration of training was shortened. The quality of 
training, however, greatly depends on the "Master's" level of experience. Training of 
new farmers also opens up another source of income to the master farms. 

A further intensification of the spread in farming was brought about by the 

training of trainers, who were given an intensive course in technical issues and basic 
pedagogy, as well as training material. The trainers come from the domestic and 
international partner organisations. Through them, further multiplier centres for 
grasscutter farming were created. 

An important element for the structuring of the new industry was the 

organisation of livestock owners into breeding clubs and associations. This eases the 
intensive exchange of experiences between breeders and the exchange of animals 
within and between the associations, necessary to prevent inbreeding. In order to 
ensure the geographical proximity of the farmers, several farmers in a given village 
were supported at any one time. 

Experience shows that it was important to hand over full responsibility to the 

groups after an initial support phase. Extensionists too must withdraw after giving their 
advice and let the groups work independently. Well-functioning groups were those 
which allowed for a change in leadership and which had a programme geared towards 
the members' needs. The National Grasscutter Association, which was established 

                                                

79

  Training only available on request; cost-sharing in development and coaching; availability of family 

members for work; own plot of land for barn construction; access to sufficient feed; downpayment for 
breeding animals prior to training. 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

early on, suffered from too much external decision-making with the consequence that 
members left and formed their own association. These various associations (13 in 
Benin) meanwhile aspire to work together in an umbrella association. In Ghana, 
farmers in 6 provinces are organised and at national level there is a coordination 
committee under the aegis of the Ministry of Agriculture. 

The final support phase of the Benin project served to further spread 

information on experiences in Benin at regional and international level. Firstly letters 
were sent to known grasscutter initiatives in the neighbouring countries, but without any 
great success. It was only with an international conference, initiated by the project, that 
personal contacts amongst the various actors were forged, thus improving network-
building. Intensive relations with Ghana and Nigeria, in particular, were established. 

Support for grasscutter production along the value chain was primarily focused 

on initial research, domestication of the animals, their improved breeding, and the 
development of farming methods. Afterwards, intensive support was given to training 
the farmers and the spread of farming. Few activities were undertaken in the areas of 
processing and sales. 

5.4  Results and Impact of Support Measures in Grasscutter 

Production

Support for the grasscutter production industry started with the necessary 

research into the domestication of the wild animals at the breeding station and in 
cooperation with an initial 100 pilot farmers, who were intensively trained and received 
their breeding animals at a subsidised price (Fig. 15). These first pilot farmers and 
other high-performance producers formed a trainer pool which, through a farmer-to-
farmer training and advisory system, achieved a rapid increase in both the number of 
farms and the availability of breeding animals.  

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Fig. 15: Value Chain: Grasscutter Production in West Africa 

Cane rat 

domesticated and 

farming system 

developed

100 pilot farms 

established and 

base breeding 

animals propagated

Income increased 

for rural and 

periurban producers 

and breeders 

Training system 

developed

More and 

improved

domesticated

breeding animals 

(>100,000) 

Number of cane rat 

farms increased 

(>8,000 in Benin and 

Ghana) 

Breeding introduced 

in neighbouring 

countries (esp. 

Ghana, Nigeria) 

Reduced hunting 

pressure on wild 

population

Incidence of 

bushfires in breeding 

areas reduced 

Diet of producing 

households

improved (personal 

consumption)

Increased quantity of

organic fertiliser 

available

Training, healthcare, 

clothing, housing, etc. 

of rural and periurban 

producers and their 

families improved 

Degradation of 

natural resources 

and biodiversity 

reduced

Poverty lastingly 

reduced

Research into the 

domestication of wild 

cane rats 

Support Measures 

Training, support 

and organisation of 

(pilot) farms 

Development of 

multiplier system 

and creation of 

training modules 

Support for producer 

organisations

Network-creation at 

national and regional 

level

Results 

Trainer and advisor 

pool available 

Impact 

Knowledge of 

cane rat farming 

disseminated

The exchange of animals and experience was facilitated by the organisation of 

producers into associations. The training of trainers from partner organisations and the 
promotion of local and regional contacts created new multiplier centres within the 
country and, later, in the neighbouring countries. 

This snowball system allowed the fast spread of the production system, which 

continues today. Thus the number of operations rose from the initial 100 pilot farms set 
up in 1994, to an estimated 600 operations with 18,000 animals in 2000.

80

 Stocks in 

                                                

80

   of these, 346 operations with 10,662 animals were registered. 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

neighbouring countries which come from Benin breeding animals are estimated at a 
further 4-5,000 animals. Training was carried out almost exclusively by the farmers 
themselves. Up to 2003, the number of operations in Benin had risen to 3,200 with 
stocks of about 72,000 animals. Breeding stocks in the neighbouring countries were 
estimated at a further 15,000 animals in 2003. 

Ghana, in particular, has since seen a boom in grasscutters. The first farming 

experiments date back to the 1960s but were not crowned by any notable success. In 
the meantime over 200 state, church and private organisations and institutions are 
supporting grasscutter farming with various measures. Over 4,000 farmers have 
meanwhile been trained, of whom 60% have already started farming. Overall, there are 
around 5,000 farmers in Ghana with over 25,000 animals. 

In view of strong demand, it is clear that present levels of farming are not having 

any great impact on reducing pressure on the wild population from hunting. The impact 
is currently still low, as breeding stocks are still being built up, so that predominantly 
surplus males and old animals are being sold for slaughter. Nevertheless, animal 
stocks of 70,000 animals in Benin still manage to produce about 250,000 young every 
year. However, with only certain animals being given for slaughter, this covers only a 
small part of national demand. 

Interestingly, there are suggestions that grasscutter farming has brought about 

a reduction in the incidence of bushfires. Grasscutter farmers publicly designate 
common areas from which they harvest grass fodder, and they take care that these 
areas are not burned. 

That livestock owners are so interested in grasscutter farming has, however, 

less to do with environmental impact, that with the positive effects at operational and 
household level. Grasscutter farming is a remarkably profitable investment. Latest 
calculations of profitability suggest that there is a domestic return of 20-40% on animals 
for slaughter

81

 with prices at around 3 EUR per kilo live weight. The domestic return on 

breeding animals, however, which currently plays a significant role, is in excess of 
1,000%. Young animals of 6-8 weeks cost 15-30 EUR each. It is estimated that small 
operations with up to 100 animals generate over 50% of their annual income with 
grasscutters. 

The enormous income potential also explains the very low discontinuation rate 

of under 10% amongst the farmers. The main causes of discontinuation are start-up 
difficulties because of insufficient experience and, later, feed or labour shortages. For 
rural households in particular, whose harvest-based income is very seasonable, 
grasscutter farming offers a financial reserve which provides ongoing access to cash or 
can be adjusted to fit in with times when high levels of cash are needed (e.g. start of 
school, holidays). The highest prices are achieved during the rainy season, when fewer 
grasscutters are available for hunting.

In Benin it is said that "one slaughtered grasscutter provides food for one day. 

One grasscutter sold is enough to buy food for a week". Female farmers in Ghana 
calculate that one grasscutter family is enough to pay for two children to go to school. 

For a large number of households, grasscutter farming is an accessible source 

of income. It is also suitable for very poor households, once start-up help is available to 

                                                

81

   Communication: 

Market Oriented Agricultural Programme

, Ghana und Niesen (2004) 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

cover the initial investment required. This start capital is often made available to 
selected groups by NGOs and civil or religious organisations. 

Grasscutter farming is also suitable as an income-creation measure for women 

and (unemployed) young people. However, in married households women tend to be 
pushed out because of the high level of profitability. In such households, women and 
children have a higher burden of labour than men because of grasscutter farming. They 
are in particular responsible for gathering food for the animals and cleaning out the 
barns.

5.5 Suitability of Grasscutter Production in Terms of 

Development Cooperation Objectives 

Firstly, the promotion of grasscutter production demanded the creation of a new 

branch of industry, "Grasscutter Farming" which required long-term development work 
whereby the repeated possibility of complete failure had to be taken into consideration. 
That this long-term effort for the successful completion of the development work was 
made is, not least, thanks to the great dedication of the individuals involved and also to 
luck. On the whole, however, it is considered that projects which require such long 
start-up preparation work are unsuitable for development cooperation. 

In the specific case of grasscutter farming, however, it proved possible to create 

a new branch of industry, which was suited to both rural and periurban areas. Small 
scale grasscutter farming is independent of land ownership and thus also suitable for 
landless households. The animal's food, principally grasses, represents hardly any 
threat to the human food supply. 

It can be pursued equally by men, women and young people, after brief training. 

This training can be effectively implemented on a broad scale using a snowball 
method, whereby experienced breeders pass on their knowledge to others. 

For particularly poor households, grasscutter farming is only possible if an initial 

investment for training and a starter package (barn, incidentals and the first breeders) 
is made available. Although grasscutter production can also be implemented at agri-
industrial level, so far farming has been practised by numerous small operations each 
with a few dozen animals. The advantages are therefore very widespread. At the same 
time, there is little intermediate trade at present, so that profits mainly go to the 
producers.

At the moment

,

the value chain has organised associations of producers and 

breeders only at producer level. The decision-making process is determined by the 
producer, as there is currently an enormous demand for both breeding animals and for 
meat. The organisation of the producers into associations opens up an autonomous 
development of this branch of industry and allows for the increasing participation of the 
members in the decision-making process, given that democratic principles are applied 
to a greater extent within these associations. 

Demand for breeding animals and grasscutter meat is presently assured and it 

is predicted that this will remain the case for the next 10-20 years. Owing to the high 
level of demand, profits from grasscutter farming and, consequently, the contribution to 
household income, are very attractive although in the longer term, with increasing 
numbers of producers, a certain downturn is to be expected. Grasscutter farming can 
be organised in such a way that income can be generated all year round or only at 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

specific times when high levels of cash are needed (e.g. social events, start of the 
school year). 

From a regional viewpoint, grasscutter production can be promoted in Africa's 

savanna and forest regions, whereby trade with breeding animals and meat can take 
place at regional or national level. Export to western niche markets is potentially 
possible but will require the implementation of increased standards of hygiene in order 
to be practised officially. At present, export business is irrelevant. 

Through grasscutter farming, pressure on the wild population of grasscutters is 

eased and further positive environmental effects are evident (availability of organic 
fertiliser, reduced incidence of bush fires). 

To summarise: grasscutter production for the improvement of economic 

dynamism in periruban and rural areas is also suitable for poor and disadvantaged 
groups (women, young people). It contributes to income and food security and 
improves access to social services. The beneficiaries are able to actively participate in 
the development of the sector. Grasscutter farming reduces the pressure of hunting on 
the wild population and contributes to the conservation of natural resources. 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Characteristics of Value Chains and their Suitability for 
Development Cooperation Support Measures 

International development cooperation has agreed to set common goals, which 

were defined in the New York Millennium Declaration in 2000, the Monterrey 
Conference (2002) and the Johannesburg Plan (2002). These were summarised for the 
German development cooperation agencies in the "Aktionsplan 2015", with the 
following goals:

82

1. 

To increase the economic dynamism and active participation of the poor; 

2. 

To achieve the right to food and introduce agricultural reforms; 

3. 

To create fair trade opportunities for the developing countries; 

4. 

To reduce debt and finance development; 

5. 

To guarantee basic social services and strengthen social security; 

6.  To ensure access to essential resources and to promote an intact 

environment; 

7. 

To achieve human rights and respect the agreed basic principles; 

8. 

To promote gender equality; 

9. 

To ensure the participation of the poor in social, political and economic life 
and to promote responsible government; 

10.  To resolve conflicts peacefully and to promote human security and 

disarmament. 

To what extent the promotion of value chains can contribute to these goals, and 

to establish which value chains are particularly suitable, depends on various 
characteristics: 

Â

The extension of the value chain influences the possible approach points for 
measures along the chain: Is the value chain restricted to a country or region 
or does it extend into the international market/can it be extended into several 
countries?

Â

The differentiation of the value chain into sub-chains: are there various 
strands which offer openings for support and income generation? 

Â

Participation in the decision-making process in the value chain (governance): 
Is the value chain driven by the demand or the supply side? How does 
decision-making work within the chain, i.e. how great is the involvement of the 
individual players? How willing are important decision-makers to contribute to 
a fair balance of interests? 

Â

The number and composition of the beneficiaries and the benefits for men 
and women: are the products manufactured by many small producers or only 
a few larger ones? Who are the main beneficiaries - women, men, the poor? 

Â

Is access open to many through low capital intensity and simply-learned 
techniques? Can production be successfully implemented in marginalised 
areas where there are far more poor people? 

                                                

82

http://www.bmz.de/de/ziele/politische_ziele/index.html

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture  

Â

The contribution made to food supply and/or to household income: What 
contribution do the approaches make towards food security and to ensuring 
the right to food? How high are the risks for the players and how consistently 
can they make a profit? 

Â

The value chain's potential for growth: Is there adequate domestic and/or 
international demand? 

Â

Does the value chain contribute to the conservation of biological diversity and 
to the management of natural resources? Are there alternative methods by 
which biological diversity may be sustainably used? 

The following section outlines important differences between the four value 

chains discussed, as measured against some of the above mentioned characteristics. 
These characteristics may be used for the analysis of further value chains. The results 
are summarised in Table 4. 

Value chains may be restricted to local level or they may extend into 

international markets. Accordingly, the number and type of actors involved changes. 
Because of the narrow market, limited lifespan and the weight-related high transport 
costs, traditional types of potato are primarily sold locally and nationally. Regional trade 
with neighbouring countries is of little significance. The actors involved are therefore 
the producers, i.e. small farmers in marginalised areas, local traders, processors and 
consumers. This is similarly the case for grasscutter production, which supplies fresh 
meat and breeding animals to the local and national market, whereby breeding animals 
are increasingly being sold across the borders to the neighbouring countries. 

In contrast, the coffee and argan oil value chains extend into the international 

market. As such, in addition to the above-mentioned actors, there are further actors, 
e.g. exporters, international importers and retailers. This broadens the spectrum of 
potential support measures. For example, improvements for producers may be 
achieved not only through measures in the producing countries but also, and perhaps 
more efficiently, through negotiations with a small group of international buyers who 
drive the market or through raising awareness amongst the end consumers. 

Value chains are different in the way they are subdivided. They may be simple, 

as is the case with grasscutter production, which alongside the sale of breeding stock 
also supplies fresh meat to local end consumers. They may, however, also be divided 
into a number of sub-chains, each of which has a different impact on important goals 
such as improved income, participation of women or conservation of biodiversity. The 
potato value chain has three sub-chains: (i) the sale of fresh potatoes; (ii) processing 
into traditional products (

chuño

 and 

tunta

); and (iii) processing into industrial products 

(chips and crisps). The first two sub-chains involve a large number of small producers 
using many types of indigenous potato. Promotion of these two sub-chains directly 
assists poor households, often in remote areas, and contributes to the conservation of 
the potato's genetic diversity. Only a few types of potato are suitable for the third sub-
chain - industrial processing - and high quality standards have to be maintained by the 
producers. Promotion of this sub-chain tends to assist large and medium-sized 
specialised producers, the development of the food processing industry and the trade 
in local products with related job-creation. The biological diversity of the potato is not 
promoted by this sub-chain, indeed, it may even be demoted. The observation that on 
the one hand, genetic diversity is essential for the development of varieties and 
products of a high market value, while on the other hand such products, once 
developed, can lead to the suppression of diversity, specifically because of their high 

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

market value, may be applied to other crops as well. Producers prefer to cultivate, 
wherever possible, crops with high returns rather than indigenous and traditional 
varieties offering only a low return. 

Similar to the potato, the two sub-chains of hand-pressed and mechanically-

pressed argan oil involve various actors and different effects. Mechanically-pressed 
argan oil is produced in urban centres by private enterprises who buy up rural 
production of the nuts. Hand-pressed argan oil, however, promotes the creation and 
maintenance of jobs for women in rural areas. The different product qualities of hand-
pressed and mechanically-pressed oil mean that different markets are supplied. Whilst 
mechanically-pressed oil is also used to make soap because of its low price, hand-
pressed oil is used for the manufacture of cosmetics. 

Generally speaking, it may be said that genetic diversity is often conserved by 

small enterprises. As such, in rural areas, measures to reduce poverty and to conserve 
biodiversity in agriculture and food production often address those households. 

There are differences within the value chains with regard to the level of 

influence enjoyed by the various actors. At present, grasscutter producers are 
supplying a market with excessive demand. As yet there is no competition amongst the 
producers and their number is limited, in contrast to the large number of coffee or 
potato producers. The farming of grasscutters also calls for a certain know how, which 
new farmers have to acquire through training with experienced producers. In addition, 
this branch of industry is not accessible to all households because of the size of the 
start-up investment. Assuming that the grasscutter farmers are well-organised, they 
can steer market access for new producers and thus regulate production volume and 
maintain high prices. 

The potato, coffee and argan oil value chains described above are driven by 

demand. Production, especially with regard to coffee and potatoes, is divided amongst 
numerous, poorly-organised, small producers, whose production volume is in excess of 
demand. They are ranged against a few, large, international buyers who control the 
market. On the one hand, this allows the opportunity of negotiating with only a few 
buyers to achieve improvements for the many producers. On the other hand, the 
buyers must be willing to use their powerful position vis-Ă -vis the producers not as a 
means to force down prices, but rather to observe certain standards which will allow 
long-term socially, ecologically and economically sustainable production. Otherwise, 
improvements at producer level may be achieved through the organisation of the 
producers, creation of awareness amongst end consumers, product differentiation, 
improved quality, greater efficiency and political regulation. 

The value chains also differ from each other in the way in which each product is 

rooted in the respective culture. Potatoes, coffee and the argan tree are traditional 
crops in the respective countries. This makes it easier to implement measures which 
raise awareness amongst producers, processors, traders and consumers with regard 
to the unique features of the product. The development of local labels and intensive 
marketing for local, traditional products can increase their market value and open up 
new markets or consolidate existing ones. This is particularly interesting given the rise 
of supermarkets in developing countries. Unlike in the local markets, the goods offered 
in the supermarkets have no link to the producer. In this profusion of "anonymous" 
products, certification and labelling which distinguish the product become all the more 
important.

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture  

In comparison, grasscutter breeding is a completely new industry, whose end 

product in some cases, had to assert itself in the face of prejudice. Thus many 
consumers still prefer grasscutter bushmeat to the farmed variety. 

Table 4: Characteristics of the Value Chains 

Criterion

Potato

Coffee 

Argan Tree 

Grasscutter 

General Criteria

Extension of the value 
chain 

local,

national, 

regional 

national, 

international 

local,

national, 

international 

local,

national, 

regional 

Division of value chain 
into sub-chains 

high medium 

medium low 

Value chain driven by 

demand 

demand 

demand 

supply 

Cultural Rooting 

high 

high 

high 

none 

Use of traditional 
knowledge 

+++

+++

+++

-

Number of actors 
involved in the value 
chain on production 
side

+++

+++

++

+

Number of actors 
involved in the value 
chain on buyer side 

Consumers:+++ 
Industry:         + 

Roasters:   + 
Consumers: +++ 

Processors:  + 
Consumers:  + 

+++

Proportion of women 
beneficiaries 

+

+

+++

-

Economic Criteria

Potential for improving 
income 

+

++

+

+++

Required start-up 
investment for 
producers 

-

+

+

++

Ecological Criteria

Biological diversity 
involved 

c. 4,000 species 

1 species with 

several 100 

varieties

1 species with 

some varieties 

2 species 

(T. swinder-

ianus, T. 

gregorianus) 

Difficulty of 
conservation in gene 
banks

+++

+++

+

+++

The distribution of the actors - producers, traders, processors, buyers and end 

consumers - is different in each value chain. Potato and coffee production and, to some 
extent, argan nut harvesting, is carried out by a large number of poorly trained and 
organised small farmers, often in remote areas. They however conserve the greater 
part of the genetic diversity. With regard to coffee in Ethiopia there is a small division of 
roles in processing and trade (buyers, wholesalers, exporters) before the coffee 
reaches the few, large, international buyers and roasters. This division of labour 
reflects how profits are distributed, so that the producers receive only a small share. 
Grasscutter producers belong to different social groups: civil servants and medium-
sized enterprises close to towns and small, medium-sized and big farmers in rural 
areas. Very poor households only have access to this value chain if the cost of the 
start-up investment is borne by projects or aid organisations. 

70

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture 

Special emphasis on the promotion of women is possible within the argan oil 

chain, as the work is almost exclusively performed by women. In grasscutter farming, 
on the other hand, few women are involved, whilst although their participation in the 
coffee and potato value chains is somewhat higher, it is not dominant, as only a small 
number of women are also company owners. 

The impact of support measures along the value chains is determined by the 

achievable improvements in income and access. Measures which allow only small 
profits find less acceptance and are difficult to diseminate, whilst high profit potential 
clearly enhances take-up. Grasscutter production provides high profit and its present 
spread in west and central Africa resembles a boom, without any great external 
assistance. However, the high start-up investment required compared with coffee, 
argan oil and potatoes, in particular, means that access is prohibited to poorer 
households. Value chains with low start-up costs generally find take-up with larger and 
poorer target groups. 

The suitability of the promotion of value chains for the conservation of biological 

diversity depends on the number of species and types involved. Argan oil production 
and grasscutter farming aim at the conservation of one and two species respectively, 
whilst the promotion of the potato and coffee value chains would conserve several 
hundred species or types. Accordingly, the impact on the conservation of biodiversity is 
quantitatively low for the first two chains, thus making the economic and social impact 
of support measures more important. In grasscutter farming, the species is directly 
protected by being conserved on farms. The protection of wild stocks is based on the 
hypothesis that an increase in farming will mean a reduction in hunting. Whether this 
will happen is uncertain, as hunting is only one of the reasons for the decline in the wild 
population. A further reason for the decline is the appropriation of land for human 
settlement and farming, which reduces the grasscutter's natural habitat. 

The following measures were successfully applied to the four value chains. 

Their use with other chains should therefore be examined. 

Â

In all four areas, the organisation of the producers into production and sales 
associations was important to permit exchange of experiences, strengthen 
the capacity of the members (e.g. by access to market information, loans, 
knowledge of quality standards and technology) and to strengthen the 
position of the producers. 

Â

At least in the start-up phase, cooperation with research institutions was 
important, so that the biological, chemical and technical properties of the 
raw material and/or end products could be investigated and stocks 
inventorised. However, it was not always ensured that this information was 
passed on to the actors in the value chain, nor that the rights of ownership 
for the genetic resources and products remained in the hands of the local 
communities.

Â

In markets with excess supply, supply was better harmonised with demand 
and quality, rather than quantity, became the priority. Certification and the 
development of local brands were promoted and the development of 
alternative products and/or uses were pursued. At the same time, 
improvements in production and efficiency were promoted to reduce costs 
(disease-resistant breeds, better methods of cultivation). New (niche) 
markets were developed and partnerships between producers, processors, 

71

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Value Chains for the Conservation of Bio-logical Diversity for Food and Agriculture  

traders and consumer groups initiated. To reduce heavy dependence on a 
single crop, support for diversified farming was provided. 

Â

Parallel to attempts at conserving biodiversity 

in situ

, the conservation of 

genetic resources in gene banks and nurseries was supported, as often 
only a part of the diversity could be conserved 

in situ

. Further options 

included the establishment of protected zones (forest reserves with wild 
stocks, gardens, biosphere reserves). 

Â

Before new methods or technologies were applied, they were tested in 
terms of their practicality and viability. 

Â

Poorly educated target groups were supported with basic educational 
measures (literacy teaching). 

Â

Alongside the direct support provided to producers, processors and traders, 
improvements to the regulatory framework and to standards were 
necessary: removal of legal obstacles; establishment of standards for 
processing and product quality; creation of analytical capacity and 
protection of ownership rights. 

Prior to any decisions on support measures for value chains with the aim of 

conserving biological diversity being made, the following basic questions should be 
answered:

Â

Which groups (small farmers, women, gatherers) are conserving the 
diversity of the species being conserved? 

Â

What sub-chains does or could the value chain have, and which ones 
would best contribute to the conservation of biological diversity? 

Â

How broad is the genetic diversity being protected by the value chain and 
what other means of protection exist? 

Â

How are the actors distributed within the value chain? How are they 
organised and what influence do they have? 

Â

What added value is created by possible support measures (acceptance 
and take-up) and what obstacles to access are there (start-up investment, 
technical knowledge)? 

Â

What opportunities exist for introducing formal regulations towards fair and 
equitable benefit sharing as prescribed by biodiversity conventions and 
ITPGRFA? With regard to the four products examined, no mention was 
made to benefit sharing, with the exception of the negative example in 
argan oil production cited by McGown (2006). 

72

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7. Bibliography 

7 BIBLIOGRAPHY 

7.1 Potato 

AMRC (undated): Agricultural Marketing Resource Centre: Potato Industry profile. In: 

http://www.agmrc.org/agmrc/commodity/vegetables/potatoindustryprofile.htm. 

AsociaciĂłn Andes (2005): Convenio para la repatriaciĂłn, restauraciĂłn y seguimiento de la 

agrobioversidad de papa nativa y de los sistemas de conocimiento comunitarios aso-
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nacional de la Papa. Lima, Peru. 

AsociaciĂłn Arariwa (2002): Avances del proyecto “ConservaciĂłn 

in situ

” en el Valle Sagrado del 

los Incas. In: Seminario regional sobre conservaciĂłn 

in situ

 de los cultivos nativos y 

sus parientes silvestres. October 2002, Cusco, Peru. 

ANDES – Kechua Aymara Association for Sustainable Communities (2002): Evaluation Report, 

Technical and cultural exchange: Deccan Development Society (DDS), Pastapur (In-
dia) and Potato Park and Lares Communities (Peru). Cusco, Peru. 

Bentley, J.; Graham Thiele; Rolando Oros, Claudio Velasco: Cinderella’s Slipper: SONDEO-

Surveys and Technology Fairs for Gauging Demand. ODI Network Paper No. 138, 
July 2004. in: http://www.eldis.org/static/DOC16082.htm.

Bernet, T.; Lara, M.; Urday, P.; Deveaux, A. (2002): El reto de Vincular a los Pequeños Pro-

ductores de Papa con la Agroindustria. In: Revista Latinoamerica de la Papa, Vol. 13, 
2002.

Bernet, Thomas; Walter Amoros: Comercializando la biodiversidad. In: LEISA, Vol. 20, Num 3, 

Dic. 2004. 

BRIDGES (2005): Weekly Trade Needs Digest, Vol. 9, Number 2. 26. January 2005. 

CIP: Potato facts. In: www.cipotato.org/market/potatofacts/potatopdf/potatopdf.htm,

http://www.ers.usda.gov/Briefing/Potatoes/potatofacts.htm.

Colchester, M. (2003): Visits to a potato Park. 

CMA: Kartoffelveredelungsprodukte. www.cma.de. 

Deveau, A.; Thiele, G. (2003): Compendio de Papa Andina â€“ Logros y Experiencias de la Pri-

mera Fase 1998 – 2002. 96p. Redepapa, Cusco. 

Guidi, A., Esperilla, R., Aguilera, J., Deveaux, A. (2002): AnĂĄlisis Prospectivo de la Cadena 

Agroalimentaria den Chuño y la Tunta en el Altiplano Central de Bolivia. Coloquio so-
bre Sistemas Agroalimentarias Locales en Montpellier, France Oct. 2002. 
www.cipotato.org/papandina/ Documentos/UltimoInforme%20SYAL.pdf. 

Guidi, A.; Pablo Mamani, R. (2000): Caracteristicas de la cadena agroalimentaria de la papa y 

su utilizaciĂłn en Bolivia. Proyecto Papa Andina – CIP/SDC. 71 p. Cochabamba, Boli-
via.

Lama, A. (2003): Campesinos rescatan papa nativa. www.latinoamerica-online.it/paesi2/peru1-

03.html.

Mamani, Pablo R.; Vallejos, J.; Trujillo, A.; Torrez, R. (2001): PromociĂłn y Establecimiento de 

Grupos Organizados de Productores de Papa en RelaciĂłn con la Industria. 2001 
FundaciĂłn PROINPA, Cochabamba, Bolivia: Documento de Trabajo 17. 

Mamani, Pablo R. (2003): ReuniĂłn de Negocios entre productores y la industria de Papa. CIP-

COSUDE, PerĂș. 

Miguel Santiago Campos, Jorge Yanovsky, Victor Lapegna, Horacio Perera (2000): De los In-

cas a la era espacial – Impacto integrador de la liofilizaciĂłn de la papa. Proceedings 
de Simposio Internacional “Avances en la Agroindustria de la Papa” Dec. 2000. Bo-
gotĂĄ, Colombia. 

Moreno M., Jose Dilmer (2003): Calidad de la Papa para Usos Industriales. CIP, Lima. 

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7. Bibliography 

Niezen, C. (2005): Iniciativas para mejorar la cadena productiva de la papa son aisladas. In: El 

Comercio. 29. Mayo 2005. 

Sherwood, S.; Nelson, R.; Thiele, G.; Ortiz, O. (2000): Farmer Field Schools in potato: A new 

platform for participatory training and research in the Andes. Submitted to ILEA. 

Thiele, G. and Deveaux, A. (2002): Adding value to local knowledge and biodiversity of Andean 

potato farmers – the Papa Andina Project. In: info agrar news No. 12/02. 

Valdivia, Fernando Crespo (2003): Caracteristicas del Sub Sector Papero en Bolivia. Studie des 

Projektes INNOVA. CIP / DIFID. 64p. La Paz, Bolivien. 

Other Sources: 

Telephone conversations with employees of the Papa Andina Project 

74

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7. Bibliography 

7.2 Coffee 

CFC (undated): CFC country profile Ethiopia (draft). By Surendra Kotecha. 

Demel, T. (1999): History, botany and ecological requirements of coffee. Walia 20, 28-50. 

FAO (2003): The state of the world’s forests. Rome. 

Fitter, R.; Kapinsky, R. (2001): Who gains from product rents as the coffee market becomes 

more differentiated? A value chain analysis. IDS Bulletin paper. 

Gatzweiler, F.W. (2003): Institutionalising biodiversity conservation. The case of Ethiopian cof-

fee forests. Conservation and Society, Vol. 3, Nr. 1, pp. 201-223. 
http://www.coffee.uni-bonn.de/coce_project_outputs/coce_project_outputs_files/ In-
stitutionalising%20Biodiversity%20Conservation.pdf.

Gole, T.W.; Denich, M.; Teketay, D. Vlek, P.L.G. (2002): Human impacts on the Coffea Arabica 

genepool in Ethiopia and the need for its in-situ conservation. IPGRI (2002): Manag-
ing plant genetic diversity, pp. 237-247. http://www.coffee.uni-
bonn.de/coce_project_outputs/coce_project_outputs_files/Human_Impacts_on_Cof-
feaarabica_genepool.pdf.

Kotecha, Surendra (undated): Ethiopia. A country profile. Tokyo Grain Exchange. 

Murray, D.; Raynolds, L.D.; Taylor, P.L. (2003: One cup at a time: poverty alleviation and Fair 

Trade coffee in Latin America. The Ford Foundation. New York, 
http://www.colostate.edu/Depts/Sociology/FairTradeResearchGroup/doc/fairtrade.pdf.

Oxfam (2002): Mugged. Poverty in your coffee cup. Oxfam International. 

http://www.oxfamamerica.org/newsandpublications/publications/research_reports/mu
gged.

Oxfam (2002): Crisis in the birthplace of coffee. Oxfam International Research Paper. 

Paty, C.; Seaman, J.; Majid, N.; Grootenhuis, F. (ohne Datum): A study of coffee and household 

economy in two districts of Ethiopia. DfiD/Save the Children. 

 

http://www.savethechildren.org.uk/scuk_cache/scuk/cache/cmsattach/1776_Ethiopia_
Study_final.pdf.

Ponte, S. (2001): The Latte Revolution? Winners and losers in the restructuring of the global 

coffee marketing chain. CDR Working Paper 01.3, Centre for Development Research, 
Copenhagen. 

Ponte, S. (2002): Standards, trade and equity: Lessons from the specialty coffee industry. CDR 

Working Paper 02.13, Centre for Development Research, Copenhagen. 

Robinson, D. (2000): The actual and potential impacts of forest certification and Fair Trade on 

poverty and injustice; the case of Mexico. Ford Foundation, Community and Re-
source Development Unit.  

Taylor, P.L. (2004): In the market but not of it: Fair Trade Coffee and Forest Stewardship Coun-

cil Certification as market based social change. Elsevier, World Development Vol. 33, 
1: 129-147, 2005. 

75

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7. Bibliography 

7.3 Argan 

Tree 

Aziki, S. (1998) : ActivitĂ©s gĂ©nĂ©ratrices de revenus : expĂ©rience des zones test initiĂ©es dans le 

cadre du Projet Conservation et DĂ©veloppement de l’Arganeraie (PCDA). In : Collo-
que International sur les Ressources vĂ©gĂ©tales, 23-25/04/98, Agadir, Marokko pp 
133-139.

Charrouf, Z. (1998) : Valorisation des produits de l'arganier pour une gestion durable des zones 

arides du sud-ouest marocain, In : Actes du 4e colloque des produits Naturels d'Ori-
gine VĂ©gĂ©tale, Ottawa, 26-29 Mai 1998, publiĂ©s sous la direction de Guy Collin et 
François-Xavier Garneau (UniversitĂ© du QuĂ©bec Ă  Chicoutimi). 

Charrouf, Z. and Guillaume D. (1999): Ethnoeconomical, ethnomedical and phytochemical 

study of Argania spinosa (L.) Skeels, a review. 

Journal of Ethnopharmacology

, 67 (1), 

pp 7-14. 

Charrouf, Z. (1998) : Valorisation des produits de l'arganier pour une gestion durable des zones 

arides du sud-ouest marocain, In : Actes du 4e colloque des produits Naturels d'Ori-
gine VĂ©gĂ©tale, Ottawa, 26-29 Mai 1998, publiĂ©s sous la direction de Guy Collin et 
François-Xavier Garneau (UniversitĂ© du QuĂ©bec Ă  Chicoutimi). 

Charrouf, Z. (1999) : Targanine, un groupement de coopĂ©ratives fĂ©minines d'huile d'argane, In: 

Actes des 18Ăšmes JournĂ©es Internationales Huile Essentielles et Extraits, Digne-les-
Bains, 1-4 Septembre 1999, Rivista Italiana Eppos Ă©d. 

Charrouf, Z. (2001) : Valorisation de l'arganier : RĂ©sultats et perspectives. In  5Ăšme colloque, 

Produits naturels d'origine vĂ©gĂ©tale, QuĂ©bec 5-9 AoĂ»t 2001. 

Groupement d’Etudes et de Recherche pour la Promotion d’Essaouira (GERPE) (1995): ‚Actes 

des journĂ©es d’étude sur l’Arganier’, Essaouira, Marokko 29 – 30 Septembre 1995. 

McGown, Jay (2006) : Out of Africa. Mysteries about access and benefit sharing. Edmonds 

Institute in cooperation with African Centre for Biosafety 

Msanda F., El Aboudi, A., Peltier J.-P. (2005): ‚BiodiversitĂ© et biographie de l’arganeraie maro-

caine’, Cahiers Agricultures vol. 14, n°4, juillet-aoĂ»t 2005. 

M’Hirit, O., Benzyane, M., Bencgekroun, F., El Yousfi, S.M., Bendaanoun, M. (1998): 

‚L’Arganier, une espùce fruitiùre forestiùre à usages multiples’, Pierre Mardaga, Bel-
gique 1998. 

Nouaim, R. (2005): L’Arganier au Maroc – entre Mythes et RĂ©alitĂ©s- une civilisation nĂ©e d’un 

arbre’, L’Harmattan 2005. 

NouaĂŻm, R. and Chaussod, R. (1999): Research for a sustainable development in the argan 

forest (SW Morocco). In : Jardin PlanĂ©taire 99 (ChambĂ©ry, 14-18/03/99), pp 518-521. 

PCDA (1999): Etude du Plan cadre d’un rĂ©serve de la biosphĂšre Arganeraie, Agadir, Marokko 

Mai 1999.

PCDA (2000): BeitrĂ€ge zur EXPO 2000; Hannover, Deutschland. 

PCDA, Aziki, S. (1999): Atelier Mateu, DĂ©pt.GĂ©ographie FLSH Agadir, Marokko 25 Novembre 

1999.

PCDA; Hayer, F. et Aziki, S. (1999): Approche participative appliquĂ©e dans le cadre de la RĂ©-

serve de la BiosphĂ©re Arganeraie "RBA / Maroc" – Leçons d'une expĂ©rience, Agadir, 
Marokko 1999. 

UCFA (2005): Fiche de prĂ©sentation de l’UCFA, Agadir, Marokko 2005. 

UCFA (2006) : PrĂ©sentation de l’UCFA lors de la ConfĂ©rence de Presse Ă  NĂŒrnberg le 17 fĂ©-

vrier 2006, Allemagne. 

76

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7. Bibliography 

7.4 Grasscutters 

Agyepong, A., Weidinger, R. (12/2002): Promoting Grasscutter Production for Poverty Reduc-

tion in Ghana; Workshop Proceedings, Ministry of Food and Agriculture; Accra 

Amoussou (2002) : Les expĂ©riences de collaboration du PPAS avec les pays partenaires. 

DeuxiĂšme ConfĂ©rence sur la Promotion de la Diffusion de l’Elevage d’Aulacodes en 
Afrique au Sud du Sahara. 17 au 19 DĂ©cembre 2002, BĂ©nin. 

Antoh, T. (2004): Stakeholder Interest, Promotion Strategy, Impact of the Grasscutter Produc-

tion and Promotion; Ministry of Food and Agriculture, German Technical Cooperation. 
Sunyani

BrĂŒntrop, M. 

; Aina, M. (1999) 

: La commercialisation de l’aulacode et de sa viande. 

GTZ/PPEAu, Cotonou. 

Codjo, A.B. (1995): Typologie des Ă©levages pilotes d’aulacodes. Etude prĂ©liminaire. Cotonou. 

Codjo, B. (1999) : Etude-diagnostic des Ă©levages de petite taille et l’analyse des cas d’abandon. 

PPEAu, Cotonou. 

DN-Consult (2004): Abschließende Bewertung der Maßnahmen zur Förderung der Grasnager-

produktion in Benin und in Afrika sĂŒdlich der Sahara. GTZ, Eschborn. 

GTZ (06/2002): Schlussbericht zur DurchfĂŒhrung des Vorhabens Förderung der Grasnagerhal-

tung, Benin (1993.2150.6). 

GTZ (2005): Grasscutter Promotion, Ghana: Farmers target their local markets and preserve 

environment. Poster 

Kipper, U. (1996): Analyse Ă©conomique des fermes pilotes. GTZ, Eschborn. 

Ministry of Food and Agriculture (05/2003): National Strategies for Grasscutter Promotion and 

Production; Accra 

Ministry of Food and Agriculture (12/2005): Grasscutter Production as a Business in West-Af-

rica, Proceedings of International Forum (Publication 05/2006) 

Niessen, C. (2004): The Grass Cutter Industry of Ghana. Identification of Investment Opportuni-

ties. Report for KfW, Germany.  

Odjo Cledjo, E.F. (2002): Capitalisation et documentation des expĂ©riences faites au BĂ©nin en 

aulacodiculture. MAEP-GTZ-PPAS, Cotonou. 

PPAS (04/2003) : Compte rendu de la sĂ©ance de travail sur les crĂ©dits PADME entre le SPAAS 

et les bureaux des associations d’éleveurs d’aulacodes le mardi 29 avril 2003 au 
siĂšge du SPAAS. 

PPAS (10/2003): Bilan des activitĂ©s du SPAAS prĂ©sentĂ© au ComitĂ© de Surveillance. SPAAS, 

Cotonou. 

PPAS (11/2002) : Rapport de mission du SPAAS au Nigeria du 13 au 17 novembre 2002. 

PPAS, Cotonou. 

PPAS (11/2003) : Compte rendu du SPAAS en RĂ©publique du Nigeria du 16 au 19 novembre 

2003. PPAS, Cotonou. 

PPAS (12/2003) : Compte rendu mission du SPAAS en RĂ©publique du Ghana du 23 au 27 no-

vembre 2003. PPAS, Cotonou. 

PPAS (12/2003): Actes de la ConfĂ©rence Internationale Ă  Godomey, Cotonou. (Ressource CD) 

PPEAu (1992) : L’aulacodiculture : acquis et perspectives. Actes de la 1

Ăšre

 ConfĂ©rence Interna-

tionale Ă  Cotonou. Cotonou. 

PPEAu (1993) : Document de base pour la mission de contrĂŽle d’avancement du projet bĂ©nino-

allemand d’aulacodiculture. Cotonou. 

Rummel, S.; Mack, R. ; Schmelz, C.; Adandedjan, C.C. (1996): Bericht ĂŒber die Projektfort-

schrittskontrolle. GTZ, Eschborn. 

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7. Bibliography 

Sarvonat, B. (1996): Etude d’appui institutionnel. 24 au 30 janvier et 25 mars au 22 avril. 

PPEAu, Cotonou. 

Schrage, R.; YĂ©wadan, L.T. (1995): AbrĂ©gĂ© d’aulacodiculture. GTZ im TZ Verlag. 

Schrage, R.; YĂ©wadan, L.T. (1999): Raising grasscutters. GTZ Schriftenreihe No. 266. Univer-

sum Verlagsanstalt. 

Schweers, R. (08/2001): Atelier de rĂ©flexion. Promouvoir la filiĂšre aulacode . Le 2 et 3 aoĂ»t 

2001 Ă  Cotonou. PPAS, Cotonou.  

Senou, M. (1996) : Evaluation du progrĂšs gĂ©nĂ©tique rĂ©alisĂ© et de sa diffusion en milieu rural. 

PPEAu, Cotonou. 

YĂ©wadan, T.L.; Odjo, C.E.; Kassavi, C. (2002): ExpĂ©rience de vulgarisation et d’animation en 

Ă©levage d’aulacodes. DeuxiĂšme ConfĂ©rence sur la Promotion de la Diffusion de 
l’Elevage d’Aulacodes en Afrique au Sud du Sahara. 17 au 19 DĂ©cembre 2002, BĂ©-
nin.

78

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Global Facilitation Unit for 
Underutilized Species (GFU) 

Deutsche Gesellschaft fĂŒr 
Technische Zusammenarbeit (GTZ) GmbH 

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