Session 1.6. Needs and approaches for diversification

1. Session 1.6. Needs and approaches for diversification Training Workshop on Allanblackia Domestication, 23 to 27 Oct 2006 The World Agroforestry Centre, Nairobi, Kenya Ian Dawson

2. Overview • Why is diversification important? • How can it be brought about and what has been done to date? • What are some of the gaps to be addressed?

3. Why is diversification important? • ???

4. Why is diversification important? Diversification may bring the following benefits: • Project supply chain stability • Efficient resource use (financial and knowledge) • Better environmental management

5. Why is diversification important? Project supply chain stability Need to prevent collapse in the supply chain Key issues to aid stability: 1. Number of buyers (niche markets, alternative products) Advantages: spreads risk, markets more sensitive to availability of product (c.f. ‘masting’) Disadvantages: lack of stringency and transparency

6. 18 Supply chain collapses? 16 Average yield/value 14 12 10 8 Yield = total value 18 18 6 16 16 4 14 14 60% average yield/value 2 12 12 0 10 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 8 8 Year 6 6 Supply chain remains viable Value 4 4 2 2 Average yield/value 0 0 Yield 60% average yield/value 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Year Why is diversification important? Project supply chain stability Supply chain viability, based on the presence of a single or multiple buyers for seed

7. Why is diversification important? Project supply chain stability Key issues to aid stability: 2. Species diversification Bring additional species and products into market (and therefore germplasm) supply chains ‘Even out’ (c.f. ‘masting’) and enhance farmer incomes Some species and products that can be harvested more quickly than Allanblackia Species with ‘complementary’ production characteristics

8. 18 Allanblackia 16 B A 14 C 12 10 Yield (value units) 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Year 40 10 All products 36 9 32 8 28 7 Average yield 24 6 Average yield all products (value units) Total yield all products (value units) 20 5 16 4 60% average yield 12 3 8 2 Supply chain remains viable 4 1 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Year Why is diversification important? Project supply chain stability Supply chain viability, based on single or multiple product involvement

9. Why is diversification important? Efficient resource use The Allanblackia initiative is developing both physical infrastructure and knowledge capacity in both germplasm and market supply chains. For example: • Nursery capacity to supply planting material for farmers • Collection points through which harvested Allanblackia seed can reach industry • Training of communities in harvesting seed, establishing market supply chains, collecting germplasm, establishing nurseries • Training national/international industry in handling a new tree product This provides a basic ‘template’ on which activities for other species can efficiently by built

10. Why is diversification important? Better environmental management The Novella Project has important implications for biodiversity and the wider environment Some impacts for biodiversity are likely to be positive, others negative. For example: • Positive: planted Allanblackia is a corridor between forest fragments • Negative: the Allanblackia market may create a tendency toward monoculture in farm systems Diversification is a way of enhancing positive impacts, ameliorating or preventing negative impacts

11. Why is diversification important? Better environmental management Corridors: forest distribution at Amani…!

12. Diversification: how can it be brought about? • ???

13. Diversification: how can it be brought about? What has been done? Elements of best practice for species diversification: • Bring other species into the germplasm supply chain (Tanzania) • Incorporate Allanblackia into village-level IFT domestication strategies (Cameroon and Nigeria) Facilitates fast adoption, is flexible • Use Allanblackia to ‘drive’ wider participatory forest management strategies Allanblackia can drive the process of diversification (Tanzania), or be one of the ‘extra’ trees incorporated into ongoing activities (Cameroon, Nigeria, Ghana) A ‘biodiversity’ project proposal is currently being developed

14. Diversification: what are some of the gaps to be addressed? Gaps include in: • Proper species prioritisation Market-led and farmer driven…Especially in Ghana and Tanzania • Understanding the roles of germplasm availability and markets in diversification Is it access to germplasm or the presence of suitable markets for tree products that determines the range of tree species planted by farmers? • Wider application of the village-level domestication approach Especially in Ghana and Tanzania • Evaluating the value of the Allanblackia agri-business as a driver of wider PFM Are the incentives for communities enough? Price sensitivity analysis

15. Conclusion Diversification of the Allanblackia agri-business should represent a win-win situation in which: • the stability and success of the Allanblackia oil industry itself • improved and more stable revenues for communities; and • positive impacts for biodiversity … are all promoted Although some elements of best practice are in place, there remain many unanswered questions.

16. Annex Schematic of the Novella Project with primary opportunities for biodiversity interventions Develop incentives for planting additional species, and incentives for more general participatory forest management, both building on the Allanblackia agribusiness > Distribution/inventory/description > Ecology research Additional products brought to market > Economic and policy analyses (incentives) Additional species planted Additional species chosen through priority setting • Wild Allanblackia • forest • - farm remnants + regenerants • Planted Allanblackia • on-farm • forest enrichment • Allanblackia oil • in the market Germplasm supply chain Oil market supply chain • > Domestication • Germplasm collection and selection • Germination and propagation • Nursery production and delivery to farmers • > Seed oil collection • Best practice on-farm tree management • Best practice harvesting guidelines • > Market delivery • Purchase through product network • Processing and export A range of products developed Activities undertaken for additional species, building on Novella Project physical and knowledge capacity Activities undertaken for other species and products, building on Novella Project physical and knowledge capacity. Emphasise use and further development of best practice management guidelines (for harvesting and on-farm management of Allanblackia and associated flora and fauna) Ensure supply chains develop in tandem, both for Allanblackia and other species (generally, hold back on harvesting, emphasise domestication?)