Two years



Nature of Project:

Risk Management

Estimated total Cost:

US$ 384,762

Financing commited by CFC:

US$ 272,622

US$ 10,500
Counterpart financing
US$ 101,640
Project Executing Agency (PEA):

Bourse du Café et du Cacao (BCC)

Project Supervisory Body:

International Cocoa Organization (ICCO)

Project Starting Date:

February 2006

Completion Date:

March 2008


Brief Description

The main activities of the project were identification and training of staff of cooperatives and banks to participate in the project; preparation and implementation of pilot operations on hedging strategies; and evaluation of the results of the pilot operations.


Project Objectives

The overall objective of the project was to develop and implement a price risk management strategy for cocoa farmers in Côte d’Ivoire. This would reduce the exposure of smallholder cocoa farmers to price fluctuations on the international market. It would also help to develop capacity to enable farmers and their organizations to make more rational production and investment decisions, based on more realistic assumptions and price expectations.


Project Results

Training materials on price risk management were developed. Representatives of local institutions and cooperatives were trained on price risk management strategies. Sources of price risk at farm-gate were identified. Hedging instruments (POPS and Puts) mitigating these sources of risk were adequately selected. Hedging contracts were drafted and approved by all parties involved. Hedging strategies were implemented on the London and New York cocoa option markets.


 Click here to download the Project Completion report (PCR)






ICCO Secretariat

Postal Address:
International Cocoa Organization
06 BP 1166 Abidjan 06
Côte d'Ivoire

Tel:  +225 22 51 49 50/51
Fax: +225 22 51 49 79
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

ICCO Agreements

The ICCO International Cocoa Agreement is available to download in Acrobat PDF format.

Go to the ICCO Agreements page

ICCO Membership Procedure

The procedures for becoming a member of the International Cocoa Organization are provided in Articles 52 to 57 of the International Cocoa Agreement, 2010.

How to Become an ICCO Member - International Cocoa Agreement 2010