World Bank begins risk mgt training for Nigeria’’s cocoa industry

Apparently responding to a growing demand for strengthened capacity in price risk management for the cocoa industry, the World Bank’s Agricultural Risk Management Team (ARMT), working in collaboration with the World Cocoa Foundation (WCF) and its Cocoa Livelihoods Programme, yesterday in Ibadan, Oyo State, flagged off a three-day price risk management training for cocoa industry stakeholders in the country.

A statement by the bank in Nigeria explained that the WCF provides a unique platform for training on Cocoa Price Risk Management because it already works in partnership with members of the industry, local development organizations, and representatives of national governments It added that the training programme, funded by the European Union’s All African Caribbean and Pacific Agricultural Commodities Programme (AAACP). WCF’s Cocoa Livelihoods Program is funded by the Bill & Melinda Gates Foundation with support from 15 WCF member companies, will bring together representatives of farmer organizations, cocoa cooperatives, SME cocoa exporters and other cocoa sector stakeholders from across Nigeria. It is designed as a training of trainers, and those who participate will then be expected to facilitate the course for local farmer organizations, financial institutions and exporters.

Speaking on the importance of the training and other collaborative initiatives between industry stakeholders and the WCF, its President, Bill Guyton, said, “WCF believes that partnerships like this one increase the impact and benefits to cocoa farmers, their families, and their communities. We are pleased to be cooperating with the World Bank on this initiative.” In his comments, Nabs Suma, the World Bank Consultant leading the training described it as a worthwhile venture, adding that, “It is fantastic, that due to the financial support provided by the European Union’s All African Caribbean and Pacific Agricultural Commodities Programme we are able to deliver price risk management training to the Nigerian cocoa sector in partnership with WCF.

We hope that the training will assist the course participants in better managing the price risk exposure that they face.” “The course aims to help participants better understand and quantify price risk and acquire the knowledge and tools required to better manage the effects of volatile prices. It is designed to educate cocoa market participants (smaller scale traders, cooperatives, and financial institutions) about the risk of unmanaged price exposure and the means for managing such exposure. The training in risk assessment and physical risk management strategies should assist the farmer organizations in understanding how to better manage price risk through better understanding the causes of price risk exposure and better understanding the means for mitigating such risk.