Bill & Melinda Gates Foundation, Partners Pledge $90 Million to Boost Incomes of Small Farmers in Africa

February 18, 2009

SEATTLE, Feb. 19 /PRNewswire/ — The Bill & Melinda Gates Foundation today
announced two significant partnerships and $48 million in grants to help
hundreds of thousands of small cocoa and cashew farmers in sub-Saharan Africa
significantly increase their incomes so they can lift themselves out of hunger
and poverty. The two grants — $23 million to the World Cocoa Foundation and
$25 million to the German development organization Deutsche Gesellschaft fur
Technische Zusammenarbeit (GTZ) GmbH — were awarded in conjunction with $42
in cash and in-kind contributions from private industry.

Cocoa and cashews provide income for millions of small farmers in sub-
Saharan Africa, who, like a majority of the world’s poorest people, live in
rural areas and rely on agriculture for their food and income. These projects
will help farmers improve the quality and quantity of their crops and provide
them with reliable opportunities to sell their crops so they can build better
lives for themselves and their families.

The grants are part of the foundation’s Agricultural Development
initiative, which is working with a wide range of partners in sub-Saharan
Africa and South Asia to strengthen the entire agricultural value chain –
from seeds and soil to farm management and market access — so that progress
against hunger and poverty is sustainable over the long term.

The grants complement financial support and in-kind contributions from the
private sector, nongovernmental organizations, and local governments. Farmer
associations will also play a significant role in leading training and
knowledge sharing.

“Making real progress against global hunger and poverty starts with small
farmers,” said Dr. Rajiv Shah, director of Agricultural Development at the
Bill & Melinda Gates Foundation. “Creative partnerships like these bring
together the knowledge of locally based NGOs and governments with the
technical know-how and market expertise of private-sector firms, and have the
potential to help millions of farmers boost their yields and incomes so they
can improve their lives.”

Cocoa is West Africa’s largest agricultural export, accounting for 70
percent of the world’s supply. Approximately 2 million West African
smallholder farming households rely on cocoa production for a significant
portion of their income. Administered by the World Cocoa Foundation, the cocoa
project will be implemented by a number of NGO and other partners, including
ACDI/VOCA, GTZ, the International Institute of Tropical Agriculture
(IITA)/Sustainable Tree Crops Program, SOCODEVI, and TechnoServe.

The cocoa project aims to increase farming household incomes through
improved farmer knowledge and productivity, better cocoa quality, crop
diversification, and improved supply chain efficiencies. The five-year project
will reach approximately 200,000 smallholder cocoa farming households in
Cameroon, Cote d’Ivoire, Ghana, Liberia, and Nigeria and aims to help farmers
double their incomes. The project will complement the broader work of the
World Cocoa Foundation, which works in partnership with its industry members
to ensure cocoa cultivation is sustainable and delivers greater benefits to
the farmers who grow it.

Financial and in-kind contributions for the cocoa project come from major
branded manufacturers The Hershey Company, Kraft Foods, and Mars,
Incorporated; cocoa processors Archer Daniels Midland Company, Barry
, Blommer Chocolate Company, and Cargill; and supply chain managers
and allied industries Armajaro, Ecom-Agrocacao, Olam International Ltd., and
Starbucks Coffee Company.

“Cocoa has the potential to deliver significant improvements in income as
well as in family and community well-being across rural West and Central
,” said Bill Guyton, president of the World Cocoa Foundation.
“Delivering on this promise, however, requires sustained and innovative
investment in educating farmers, diversifying the crops they grow, improving
their marketing efficiency, and the involvement of companies working together.
This new partnership with the Bill & Melinda Gates Foundation represents a
major step forward in these areas, opening the door to a much brighter future
for hundreds of thousands of farm families in the region.”

Africa is responsible for about one-third of the world’s cashew crop.
However, a lack of cashew processing facilities in Africa has created major
market inefficiencies and denies Africans the economic benefits that accompany
jobs in the cashew processing sector.

The cashew project aims to improve the quality of raw cashew nut
cultivation, increase farmer productivity, improve linkages between
smallholder farmers and the marketplace, build African processing capacity,
and promote a sustainable global market for African cashews. The project’s
goal is to help 150,000 smallholder cashew farming households in Benin,
Burkina Faso, Cote d’Ivoire, Ghana, and Mozambique increase their incomes by
50 percent by 2012.

“This project will help develop strong groups of cashew farmers that, with
the help of the private sector, can be linked to factories,” said Winfred Osei
, CEO, West Africa Markets Link in Ghana. “This will create local jobs
and bring additional income to the people in our country who need it the

GTZ will lead the cashew project with assistance from the African Cashew
Alliance (ACA), FairMatch Support, and TechnoServe. Financial support, in-kind
contributions, and other support for the cashew project come from supply chain
managers and processors Global Trading Agency BV (GTA) and Olam International
Ltd.; branded manufacturers Intersnack Group GmbH & Co. KG and Kraft Foods;
retailer Costco Wholesale Corporation; equipment manufacturer Oltremare; and
other contributors, the German investment and development company DEG -
Deutsche Investitions- und Entwicklungsgesellschaft mbH, and the United States
Agency for International Development.

About the Bill & Melinda Gates Foundation

Guided by the belief that every life has equal value, the Bill & Melinda
Gates Foundation works to help all people lead healthy, productive lives. In
developing countries, it focuses on improving people’s health and giving them
the chance to lift themselves out of hunger and extreme poverty. In the United
, it seeks to ensure that all people — especially those with the fewest
resources — have access to the opportunities they need to succeed in school
and life. Based in Seattle, the foundation is led by CEO Jeff Raikes and Co-
Chair William H. Gates Sr., under the direction of Bill and Melinda Gates and

Warren Buffett. Learn more about the foundation at

About World Cocoa Foundation

Established in 2000, the World Cocoa Foundation is a leader in promoting
economic and social development and environmental stewardship in 15 cocoa-
producing countries around the world. With nearly 70 member companies from the
Americas, Europe and Asia, the Foundation actively supports a range of farm-
level programs harnessing sustainable agriculture practices to improve the
quality of life for the millions of smallholder farmers growing this unique
crop. For more information about the World Cocoa Foundation, visit

About GTZ

As an international cooperation enterprise for sustainable development
with worldwide operations, the federally owned Deutsche Gesellschaft fur
Technische Zusammenarbeit (GTZ) GmbH supports the German government in
achieving its development policy objectives. It provides viable, forward-
looking solutions for political, economic, ecological, and social development
in a globalized world. Working under difficult conditions, GTZ promotes
complex reforms and change processes. Its corporate objective is to improve
people’s living conditions on a sustainable basis. The company works on public
benefit. For more information about GTZ, visit http://www.gtz.de.

SOURCE Bill & Melinda Gates Foundation

Source: newswire

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