Cooperative Support Project – Cocoa for Agricultural Inputs

Cooperative Support Project – Cocoa for Agricultural Inputs

• Description: Barter arrangement for an Ivorian cocoa cooperative to receive pesticides, tractors, and technical training from a BRICS supplier in exchange for processed cocoa.

• Content:

  • Cooperative profile

  • Products exchanged

  • Contract framework

  • Risk mitigation & insurance

Cooperative Support Project – Cocoa for Agricultural Inputs

• Description
  This project proposes a structured barter arrangement in which an Ivorian cocoa cooperative trades processed cocoa (butter, liquor, powder) to a BRICS agricultural supplier in exchange for pesticides, tractors, and technical training. The model improves cooperative productivity, secures needed inputs without cash payments, and ensures long-term supply partnerships.

1️⃣ Cooperative Profile

• • Name: Example – Union des Coopératives de Cacao de Côte d'Ivoire (UCOOP-CI)

  • Membership: 5,000+ smallholder farmers across multiple production zones.

  • Production Capacity: 25,000 MT cocoa beans annually, with integrated processing facilities (cocoa butter, liquor, powder).

  • Certifications: Fairtrade, Rainforest Alliance, ISO 22000.

  • Objective: Improve yield, quality, and export competitiveness through better inputs and mechanization.

2️⃣ Products Exchanged

• From Cooperative (Export)

  • Processed Cocoa:

    • Cocoa Butter: Food and cosmetic grade

    • Cocoa Liquor: Industrial chocolate manufacturing

    • Cocoa Powder: Beverage and bakery industries

  • Value: USD 4,500,000 (based on world market prices and certified quality)

  From BRICS Supplier (Import)

  • Agricultural Inputs & Equipment:

    • Pesticides, fungicides, fertilizers adapted for cocoa cultivation

    • 20 medium tractors with accessories

    • Irrigation and sprayer systems

  • Technical Support:

    • On-site training for equipment use

    • Integrated pest management and sustainable cultivation workshops

  • Value: Equivalent to cocoa value, USD 4,500,000

3️⃣ Contract Framework

• • Structure:

    • Barter contract under value-for-value principle.

    • Cocoa deliveries FOB Abidjan Port.

    • Inputs and equipment delivered CIF Abidjan.

  • Incoterms:

    • Cocoa: FOB (exporter bears port handling, buyer arranges freight).

    • Inputs: CIF (supplier arranges freight and insurance).

  • Timeline:

    • Cocoa shipments in 3 tranches over 12 months.

    • Inputs delivered in 2 tranches aligned with agricultural seasons.

  • Legal Reference:

    • Governed by ICC Model Contract for Barter Transactions.

    • Dispute resolution via ICC Arbitration (Paris).

4️⃣ Risk Mitigation & Insurance

• • Financial Guarantees:

    • Standby Letter of Credit (SBLC) issued by cooperative's banking partner in favor of supplier.

    • Performance Bond from supplier covering timely delivery and quality of inputs.

  • Insurance:

    • Marine cargo insurance for all shipments.

    • Political risk insurance through MIGA or Atradius.

  • Compliance:

    • Conformity with phytosanitary regulations and export/import laws in both countries.