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COMMON FUND FOR COMMODITIES
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Pilot Project on Price-Risk Management for Cocoa Farmers (C 2010)

The specific objectives of the project are: a) To introduce and test the feasibility and use of various price-risk management instruments by groups of farmers and/or farmer co-operatives, local cocoa traders and/or exporters; b) To develop suitable market-based options and price-risk management instruments for cocoa farmer groups and co-operatives to effectively reduce their exposure to downside price risks; and c) To develop the capacity to enable cocoa producers and producer organisations to make rational production and investment decisions based on realistic assumptions of future prices. These pilot activities are expected to be completed in 2010 and subjected to an impact evaluation. A possible follow-up project with possible operating sites in Cameroon, Côte d’Ivoire and Nigeria, is expected to result in significant benefits to all stakeholders in the cocoa sector, particularly smallholder farmers, local traders and exporters.