Digitized Cocoa Economy.
We had exported cocoa from 2008 to 2013, to Europe and Asia, we share our experience . We were faced with these challenges;
1x bag of export quality cocoa earn USD$ 67.50 weighing 62.5 kilogram, USD$ 1.08 per kilogram and a ton for USD$ 1,080. We were trading
through brokers. Later we learnt that prices were exceptionally low.
The Cocoa Pod Borer attacked our blocks devasticated farms reducing our cocoa production and collapsed the industry. However intervention of the World Bank and GoPNG on 2016 to 2019 increased our cocoa Production to1000 tons annually.. That we are trading locally.
From the experience of trading, we needed to develop a transparent and effective cocoa value chain and that is where the Digitization of the Cocoa Economy is our MIT SOLVE Solution.
The global cocoa industry is seeking for more transparency and traceability along the chain. This relates to a growing need for evidence on quality, origin and sustainability claims. As a result, there is an increasing need for information from all actors along the chain, including cocoa producers and exporters.
The gathering, monitoring, and storing of information along the chain is increasingly managed digitally. There is a fast-growing range of digital solutions and tools that help gather information to guarantee sustainable sourcing, facilitate market linkages, improve productivity, competitiveness and/or help protecting the environment.
Cocoa producers increasingly benefit from the use of digital tools and access to information aimed at improving various internal processes as well as decision-making. At farm level, digital support tools may help you to apply fertilisers at the right time and can provide information on (changing) weather patterns and how to respond to them.
Digitalisation has benefits beyond the farm level. For instance, access to digital information may provide buyers with unique information on production and origin, which may encourage them to source cocoa from specific small-scale farmers.
Tools can provide producers and exporters with the opportunity to share more specific information about their products and practices. This may also increase their chances of securing access to financing and insurance. Lastly, technology facilitates the direct linkage of small-scale producers to the entire value chain and buyers.
There are many digital tools available, all with different applications and objectives. Therefore, it is crucial to identify our needs before deciding on using or investing in any tool.
The nine tips of that will be adopted.
- Understand what digitalisation can do for you
- Use data and digital tools to improve cocoa farming practices
- Improve your internal processes by using digital tools
- Increase traceability by joining blockchain initiatives
- Use digital tools to increase access to financial services
- Increase your market attractiveness through digital experiences
- Monitor and improve your quality with digital support
- Use digital marketplaces to optimize your marketing
- Connect with organisations that help you embark on your digitalisation journey
Digitization of the Cocoa economy transforms the Cocoa Industry and revolutionilize the socio economic livelihoods and secured education and health needs of our rural population.
The core of the challenges is for increased household assets to minimize the incidence of poverty, Food Security, Gender participation, Good education and improved health and minimizing discrimination and justice to all. Our environment is protected and conserved through adopting Climate smart Agriculture Systems.
From a self a determination platform with this Cooperative Society movement, we have existed since 2007 after being legally registered. We never looked back from a primary producer Cooperative to a cocoa exporter. We have sailed through stormy times however globalization through our cocoa export business exposed us. Our cultural bondage of mutual understanding and united for common goals are our ethnical strengths. The digitized economy builds innovation profiling information for transparency enabling informed decision making. Being transparent from our digitized economy developing database of our farms, the size per house hold, the performances of cocoa trees in the farms, soils type, production output, the bean fermentation and drying, the type of dryers, the storage on farms sites, the fuel used, sunny days, transportation to the main warehouse shed for inspections, grading and fumigation for exports are made known to our stakeholders whom we trade with. This data is compiled for verifications, certifications and tracking. Our cocoa has an origin story for further Fairtrade certifications organically.
The Middle Ramu District encompasses four LLGs of which two geograghically accept cocoa. The Digital Economy now being proposed is ideal to link the Cooperatives and farmers in this two LLGs. The Society is centered at the Ramu river for accessibility where bulk of the clusters produce their cocoa.
The core of our solution is the digitized transformation by which the digital refers to the technology and the transformation of the service or business. This innovations replaces old versions with new upgraded verson compatible to our needs. The Global positioning systems is introduced to locate establishments of cluster farms, sheds, routes of movement. Advanced technology can be adopted through the use of drawns as escort for transportations of goods and services to and fro. There is a sharing economy between sellers, business, buyers, freighters, quality controllers and legislators. The aggressive use of data is transforming business models,facilitating new products for our cocoa confectionary products, creating new processes, generating greater utility and ushering on the new culture of Management. The solution is adding value for the sustaining the operations of the digitized economy.
Within our operations, the digitized economy enables markets, creates employment, investments opportunities, value adding, international trade, e commerece and productivity growth. Our biggest challenge experience until now is the Digital Divide. The gap between us as we do not have access to Digital technology and those have accesses to technology.
What is meant by digital economy?
refers to the use of information technology to create or adapt, market or consume goods and services. Digital novelties include digital banking, e-commerce, virtual education, smartphone apps and collaboration platforms.
9 tips to go digital in the cocoa sector https://www.cbi.eu/market-info...
The Middle Ramu Cooperative Society hails from the Middle Ramu District of Madang province. Legally registered and operated as a cocoa exporter from 2008 to 2013 however scaled down from nation wide epidemic of the Cocoa Pod Borer.
Our target population is;
Middke Ramu District has four Local Level Government's and two LLGS grow cocoa. The two are Arabaka and Joseohstaal. Arabaka has 21,840 people while Josephstaal has 19 678 popultation with a total of 41,518. The other two LLGs of Simbai and Kovon grow coffee.
Wards in Arabaka directly involved and located accessibly to the use of the Ramu river are; wards 3,4,5,6 7 8 9,10,11,12,13,14,15, 34 and 28. The total population of the 15 wards out of 34 wards is 10,231is oyt target group while the 11,609 reached from our proposed digitized solutions the linkages. they live in the hinterlands from the banks of the Ramu river.
The 650 model farmers were selected from cluster groups from the 8 wards of Arabaka LLG that include wards; 9,10,11,12,13,34,14 and 15 with a total population of 6,669
From this 650 model blocks, a total of 170,000 cocoa clones were developed at 200 clones per model farmer per cluster. A total of 272 hectares developed with production increased to 544 tones annually of which we are in the process of renewing our export cocoa license with the Cocoa Board of Papua New Guinea to export our cocoa from the District. The District cocoa production has now increased to 1000 tons. These Cocoa will now be processed adding value to cocoa liquor to be further pressed to Cocoa butter and powder. The income generated from the sale of these added value products empowers the Society to reach out to the population not currently touched.
Our Solutions of developing a digitized economy compliments along with adding value from the current conventional systems to innovarive confectionary products for investments sustainability.
The digitized economy is creating an opportunity for our members who graduated as engineers, Agriculturalist, accountants and Food technologist to be employed. These learnt people will take the lead in adopting digitized solutions hence capitalizing to build a vibrant institution for further collaborations with stakeholders like the banks, software owners, the cocoa business world and the governments. The Society has literally created an evionment for freedom to ownership and partnership to primary producers to actively involve within the Society environment in leading our destination. Hence therefore the relations within the communities and the government's District Administration is conductive to develop our digitized platforms . The digitized economic solutions is an innovative that we are seeking to adopt for our enhancements and the outcomes from this solutions strengthens framework in today's world of business. The Society as such needed special considerations for linkages, Partnerships and empowerment from MIT SOLVE to come to our empowerment with her diversity and global linkages.
We are not relying on MIT SOLVE linkages alone, we are looking at Partnerships and equity arrangement in delivering our solutions.
The implementation of digital tools can be a crucial step in monitoring and improving the internal processes of our cocoa business. By collecting accurate information about our business, track the activities happening on the farm, control the internal management system, connect with model farmers and cluster groups, as well as monitor sales. With digitalisation and digital tools, you can also connect and compare information from different business areas to identify which areas need improvement.
The digital economy is to be adopted by engineers in Communication to develop a vibrant enabling system establishing the foundation for growth. We have Electrical and Communication graduate engineer who will lead us in developing the digitized solutions.
Our communities from where we are linked are participated through market access, improved capacities and triggered through spin offs in the SMEs.
Within the local communities, farmers are grouped in cluster orgions within tribes and clans in their local level Government wards from our Arabaka Local Level Government. These clusters make up the groups who are members of the Society. Our other linkages are Cooperrative Societies from within the District as well as from Madang Province. Cluster groups are formed within cultural settings appointing their Clan Leader as the Authorithy over the clans from where the Society intervine to do situations analysis to develop Resource Develoment Plans. Land is then mapped, land use plans is put in place for cluster group. There is land for hunting, gardening, plots for cocoa or other cash crop developed. These systems are documented identifying the SWOT of each cluster.
Effective digitized data base developed with respective producer be tracked collecting the required data.The clusters from their capacity are encouraged to register formal SME venturing into other income generating activities in raising smsll animals like chickens and piggerry. Women in sewing, crafting items and cooking and baking.
Informal creation of employment for the cluster members with work on their farms and SMEs. Contracts offered by the Society to clusters with increased prices. There is security within livelihoods well fare where families can afford for good housing, balanced nutritional meals, secured financially to meet health and educational fees, there is no injustice, families live a secured life minimizing poverty levels. Indicators of the SDGs are improved. From well developed digitized system in place also for our stakeholders like banks to retrieve the information for financial services.
The digitized economy further opens up the framework structures for the benefit of the Society throuch;Communications,Collaborations ,Innovation in linking household, industry stakeholders and the governments.
Analyzing the gaps and working towards narrowing the gaps through monitoring and evaluation is effective through Digitization.
We have this challenges as our cocoa farms developed in 2016 to 2019 are not effectively monitored now unless we have digitized system in place.
Households are benefactors of the systems of the business and linkages while he government issues licenes and creates conducive environment and foreign sector comes in with new interventions from innovations, market development and opportunities.
- Make it easier and more affordable for individuals and MSMEs to make investments and transfer payments, across geographies and across different types of platforms
- Papua New Guinea
- Growth: An organization with an established product, service, or business model that is rolled out in one or more communities
The Middle Ramu Cooperative Society is from the Middle Ramu District, one of the administrative Districts of Madang province of Papua New Guinea. The Society is a stakeholder holder in implementing government policies in the District and the country.
We have been a driving force within our liberation to strive in the world of Agriculture Economy more through our strong driven attributes of being self reliant. Our Cocoa Export businesses was in operations from our financing of broker's who took opportunities to their advantages of our market illiteracy and nativity in general.
We have our issues that needed interventions from like minded organizations that live and walk their principles. We have in our own cultural inheritance had protected our environment for future generations therefore we are driving the UN global sustainable Goals.
We see MIT SOLVE as our hope to open up the world to us for our equity in leveraging the global sustainable development goals.
We are working with 650 model farmers from our targeted benefactors of over 10,000 people along the Ramu river
I see that SOLVE has the mentor to establish a relationship to intervine in strengthening relations as a pilot project in the upscaling of our models in processing, development, marketing, branding and developing value chain of our products globally.
We are into our cocoa market businesses locally and now we needed to grow the business in developing the cocoa value chain.
We are also planning to invest in processing cocoa liquor adding value to our cocoa products through globalization and developing market opportunuities needed external partner like MIT SOLVE in the relationship. We are creating this link for a shared obligations with a Global partners that has vast experience in building capacity of emerging small economies like the Middje Ramu Cooperative Society.
While this is our first time to go out off shore to seek collaborations for empowerment, we have own settings in country that we are limited to opportunities that can be linked to opened up opportunities in the last 10 years or so. Although we were trading cocoa beans, our capacity building opportunities is there but we were limited to be linked with. Opportunities for building a digitized cocoa economy that is seen a way forward to upscale to the next level for duplication by other sister Cooperatives. We are model for Cooperative Society to come out in meeting the global Standards.
From Agriculture Landscaping adopting Climate Smart practices mitigating Climate resilience at the same time sustaining our livelihoods has been our practice for the last ten years. With changing global climate patterns forcing environmental turbulence, a shared interest concerned can be considered in selecting our upscaling project concept here.
Our immediate settings is along the river system :as the banks, valleys and plateau are rich in soils and good Agriculture farm land. We only plant our cocoa under regrowth along the Ramu river with vast forest untouched.
We needed the support for:
- upscaling to be more competitive and successful getting our cocoa to consumers who can taste our cocoa grown from natural environmental ecocsystem that is virgin and pure and the purest of our cocoa can be a niche market developing a brand.
- We needed to develop and adopt new matrix systems for financial investments, monitor our systems linking our farmers who currently are literally not exposed and do not have the liberty to speak for fairness and justice.
- We can be a model for replications of our story to other rural Cooperatives in PNG and the region who are engaged in similar settings in Craft Associations, Fisheries and Coffee Cooperatives.
World Bank and GoPNG invested to increase production at farm levels however yet to develop structures for processing and developing effective value chains. We therfore live all odds behind moving forward from our incentives. Proponents benefitted through the World Bank cannot benefit again and that has denied the next upscaling
MIT SOLVE being technology based institution and backed up by the MIT university has the bank of knowledge that can be shared for innovation and development.
- Business Model (e.g. product-market fit, strategy & development)
- Financial (e.g. accounting practices, pitching to investors)
- Human Capital (e.g. sourcing talent, board development)
- Legal or Regulatory Matters
- Monitoring & Evaluation (e.g. collecting/using data, measuring impact)
- Product / Service Distribution (e.g. delivery, logistics, expanding client base)
- Public Relations (e.g. branding/marketing strategy, social and global media)
- Technology (e.g. software or hardware, web development/design)
The structural components in the link below for the cocoa economy fits in with this link https://www.cbi.eu/market-info embraces our proposed solution of our digitized Cocoa Economy in moving into new dimension scaling of the operations of the Society to the Competitive advantage in the Cocoa Economy within our country.
The solutions build systems of orgnzation governance, Stakeholders confidence, financial opportunities for borrowing and credit worthiness, From farm levels , production is increased, internal intelligence systems are adopted, new and improved systems are adopted.
Improved structures build confidence for Stakeholders intervention on building capital investments like roads an bridges.
The digitized Cocoa Economy is Managed on top of the finger tip of the Cooperative employees from Improved capacities and digitized networking of the organizations systems. Satellite GPS are used in where there is no established network coverage..
Innovation attributed to the conventional system's to
1. Develoment of data base - our core components in production from farms, the details of the clusters, the markets, the finished products etc are developed on linked through Digitized solutions.
2. Increased Savings and Borrowings. The Village banking Systems is an innovative in accessibility banking systems that makes it more flexible and reliable. Savings increases wealth in families who are illiterate in savings and borrowings.
3. Increased organizational capacity into developing Governance and procedures
- the Coroporate Governance structures enables the operations of the Society being prudent and meeting goals on serving the members.
4. Developing Stakeholder trust and confidence.- loyalty is compromised with members and increased reputations and productivity.
5. Going Innovations adding value to our Cocoa. A Milestone soluton in the industry as only raw beans are exported out from the country and value adding through industrialization is change solutions through the cocoa economy. The Society is taking a lead for replications.
6. Increased foreign reserves in the bank through our exports. In the country perception, there is more foreign liquidity for trade.
7. Branding of our Confectionery products advertising the products to be more competitive and having market space.
Market value through organic and Fairtrade certifications achieved through their tracebility in branding.
Digitized the financial solutions is touching the central nervous system of the busuness as it captures electronically store our data base that can be retrieved when needed by us and Stakeholders. Development plans, our own reporting, the GDP of the Disrict and note to that our Operstional data is securely kept for our day today operations.
Further empowerment through the theory of change with one innovation builds evionment for an other innovation. Example in the world of poverty;
1. Analyze the situation
2 . Clarify the program goal
3. Design the program/ product
4. Map the casual pathway
5.Identify the explicit assumptions
6. Design specific, measurable, achievable, reliable and time bound indicators
7. The production or the solutions.
The situation of poverty develops a theory of change through sectoral approaches for the well being of human in interactions to the environment within which one is adjusted to choose for survival.⁰
Impact Goals to be seen over the next 5 years. 2024 to 2029 from the current solutions that we consolidated.
The programs include;
1. Upscaling of the Impact investment of the World Bank project - 2016 to 2019, Middle Ramu Cocoa Diversification & Marketing Project.
The project had already established structures for expansion of the Cocoa clone material from the current 650 model farmers. From the current levels of 544 from 650 model farmers invested 170,000 clones and adding on to the existing production reached to 1000 tones produced annually. The 650 model farmers further disseminate the learnt skills to two more model farmers each planting 200 clones total 400 clones per annum for year 1, 2024. And every year 400 is planted for five years as a target increase Cocoa plantings to (650 x 400 x 5 years = 1,300,000 trees) developing 2080 hectares of land increasing production to 4160 tons by 2029. Cocoa come into full productions by 2032.
1. Economic value
1.1 Cocoa Bean Trading.
Current one ton sold at USD 2500X4,160 tones earns USD 10, 400,000 per year converted to PGK 39, 518,528 income year 2032.
1.2 Value of cocoa liquor by 2024 from the current 1000 tons.
1 2.1 1000x beans process 80% liquor and 20% allowed for shells and offal. A total of 800 tons liquor per year @ USD 5,000 a ton earns USD 4000,000 converted to PGK 14,824,814.90 in 2024. The value increases cumulatively for five years.
The cash flow has impacts to
2. Education. - The Society invested in capital investment in school building schools structures while parents pays education fees their children.
3. Health - Families afford medical fees and well secured to any turbulence or emergencie from the cash earned from cocoa.
4. Families Socioeconomic well fare per families household increased , families are secured financially to afford nutritional food, build Malaria free homes and access clean water from rain engagements
4. Environment Protection.
Farmers plant the cocoa under forest or shrubs without clearing the forest. This landscaping is to prevent cutting forest
5. Economic Growth enabling more SMEs to narrow from increased cash flow.
There is significant change in the District from the cash flow of incomes from cocoa.
6. Borrowing and investments from cluster groups encouraged. Farmers adopt the culture of savings sustainaining the financial resources for the family needs.
7. The cocoa cash economy builds the economy with transforms economic infrastructure as a stakeholder in physical development needs of the communities.
Directly encouraging the producers who are faced and lived with these vulnerable challenges are to be linked for total participation in the Digitized Cocoa Economy. Our ethical cultural unity from our social hierarchy is our strength when exposed gives our prominence and globalization.
The digitizing Cocoa economy is straterhic and worthy solutions as it is the driving enhancements to all stakeholders in the industry more in a community of cocoa as a family relying from each other within the structural circles locally and internationally.
- 1. No Poverty
- 2. Zero Hunger
- 5. Gender Equality
- 8. Decent Work and Economic Growth
- 9. Industry, Innovation, and Infrastructure
- 10. Reduced Inequalities
- 15. Life on Land
- 17. Partnerships for the Goals
SDG 1. Ending Poverty
Immediate Target is the 650 model farmers who had developed 200 Cocoa clones in their blocks.
Identifying adverse set backs and setting core functional strategies guided for peace, prosperity, people and planet.Complex problems faced by farmers daily, their families are not forced labour, illicit drugs etc.
Indicators;
Mophological data is collected including qualitative and quantitative data of increased production, income earned, house hold income measured, savings and borrowings, sales records progressively recorded and retrieved when needed.
SDG 2 Zero Hunger -
Taeget; The 650 farmers should not struggle to feed every family member their household. Alternate food is secured.
Indicators.
1. Increased household hold items.
2. Increased meals taken three times a day
3. Increased household items readily available for preparing meals
4. Secured incomes at the bank accounts .
5. Secured and safe place to store food leads to safe, secured homes built.
SDG 5.Gender Equality
Target, 650 mothers to come out from identify their opportunities within the Digitized Cocoa Economy to venture into opportunities.
Women are directly involved into spin-off and sustainability.
Indicators.
1. Number of women are employed th Society
2. Number of women can bake cakes and cook good dishes.
3. Number of women raise smzll animals like chicken farming.
4. Number of women formed group savings groups.
5. Number of women leadership skills
6. Ñumbér of women are computer illiterate.
SDG 8. Decent work and economic growth:
Target: Informal and Formal employments within the operations of the Society, there is no forced labour, labor is shared between cluster members of the model l blocks.
The output is measured qualitatively and quantitatively.
Indicators
1. Employment of People directly increased
2. Number of SMEs increased, employments increased.
3. New Skills and knowledge is shared.
SDG 10. Reduce Inequilaties;
Target: Having understood the principles and risks of reduced Inequilaties, inclusiveness to all are linked through their traditional inherited clan structures giving opportunities to all families through our data base.
Indicators
1. Increased Peace and Justice in Society
2. Increased opportunities for members of the Society
3. Less destruction of environment out of conflicts
4.increased quality of Life
SDG13. Climate Action.
Target; landscaping us adopted through land use planning and mapping. Smart Agriculture farming systems are adopted with intercropping, cocoa under forest. Our actions continue for clean, healthy and safe ecosystems and biodiversity within the environment we operate than contributing to Climate hazard.
Indicators ;
1. increased Cocoa Climate Smart landscaping.
2.Increaed Fallow of land
3. Increased Crop Rotational Practices
4. Increased conservation of land
SDG 17; Partnerships for the Goals;
Target; linkages and partnersing for common goal creates an environment for collaborations towards achieving the global SDGs. The rural population under the poverty lines needed linkages opening opportunities to equally participate.
Indicators:
1. Increased stakeholders linkages & relations with in the Partnerships.
2. Increased understanding and collaborations I towards adopting the SDGs.
The significance of the digitization solutions of the Cocoa economy is establishing road map from the current idle conventional system's to a innovative globalized system that wiĺl integrate pillars of the Digitized Cocoa Economy. The Financial Digitized Solutions strengthens the Cocoa industry to an hidtiruc, dynamic and a success story. With solutions adopted by the Middle Ramu Cooperative Society , she is strengthened to investigate, team up and collude with like minded stakeholders who has common interest within their overall goals and strategies. Our story starts from our simple local entity to a global competitive organization. As explained in the model framework below.
The theory of change is catalyzed as; inputs, activities, outputs, outcomes and impacts.
In this results, inputs are used in order to carry out activities. Activities lead to services or products delivered (outputs). The outputs start to bring about change (outcomes) and eventually this will (hopefully) contribute to the impact.
Inputs
LogFrame (Logical Framework): Planning and oversight tool consisting of indicators and milestones for key inputs, activities, outputs, outcomes and impacts.
In our case from simple cocoa farming to exporting cocoa to adding value enabling families increase house hold assets is the outcome in the Solution. The theory of change is managed along the chain with various log framework described.
Inputs and outputs are similar in that they contribute to the desired outcome of the organization. The input is any step taken towards that goal, while the output is the production result of that input action. Inputs and outputs work together as cause and effect when achieving business goals.
An easy way to think of this is that outcomes are the results, and outputs are the activities that support the desired results. For example, a business outcome could be 'increased customer satisfaction'. An output that can help achieve this might be a responsive online ordering system.
Inputs ensure that it is possible to deliver the intended results of a project. Activities on the other hand are actions associated with delivering project goals. In other words, they are what your people do in order to achieve the aims of the organization or a project.
Outputs are a quantitative summary of an activity. For example, the activity is 'we planted 272 hectares of land and the output is production increased to 544 tones. An output tells you an activity has taken place.
Why is Theory of Change (TOC) Important? Theory of Change leads to better planning. TOC provides a basis for evaluation. Theory of change explains how the activities undertaken by an intervention contribute to a chain of results that lead to the intended or observed impacts.
the Digitized Cocoa Economy to be adopted by the Society is to develop a platform for TOC on revolutionilization of the Society.
https://www.cbi.eu/market-info...
Http;//www.engineeringfikids.com.8
The financial digitized structurally closes or fills the gaps of the cocoa economy enabling the system to be compatible and accessible to use without fear and minimizes risks.
Electronicaĺy managing the finances transactions of the Cocoa business is the core of our solutions that Digitizing Cocoa Econony is an innovation to boost the solutions.
Within the technology sector, we have computers and mobile that are used for our operations. The most common platform used communications platforms like emails. WhatsAp, face book.
The overarching of our digtized economy is delivered from the 9 components can be adopted in the link below.
9 tips to go digital in the cocoa sector https://www.cbi.eu/market-info...
Our elevated pitch shows the video of our proposed mini cocoa processing plant processing 125kg/hour beans to 67 tons cocoa liquor that will be processed for further pressing into butter and cake grounded to powder.
- A new application of an existing technology
- GIS and Geospatial Technology
- Software and Mobile Applications
- Papua New Guinea
- Australia
- Germany
- New Zealand
- United States
- For-profit, including B-Corp or similar models
We are looking forward to connect with organisations that understand us that can built our digitalization journey to be diversified, compatible, friendly to us and our stakeholders at large.
Implementing digital tools into our operations ystems requires time, money and dedication. There are many digital tools on the market, each with their own purpose. Always make sure to truly understand what a tool offers, and whether it can help us address our specific needs.
Given the importance of technology, many national and international companies and organisations include a digital component in their operations and that is where our solutions will lead us.
This theory of change that we are seeking through MIT SOLVE is first of it's type that this solutions through the partnership is seen the hope for Society and Stakeholders. Importantly the systems enables and build the ASSET base of the Society embracing exposure for relationships globally especially in advocating and adopting the SDGs.
For instance, ECOM, Oikocredit, Grameen Foundation, and COSA developed a project in Ecuador seeking to improve the competitiveness of small-scale cocoa producers through access to precision agricultural technologies and innovative credit products. Another example is the COLCO project, developed by 12 companies from the United Kingdom and Colombia, which in part aims to support farmers, associations, cooperatives, independent traders, and large chocolate manufacturers through the development of technologies for processes like pre-harvest and quality assessment.
Also check out other international organisations, such as TechnoServe, Rikolto, Agriterra and Solidaridad, and see whether they offer assistance and practical guidance in your country when it comes to adopting digital tools. For instance, Rikolto is involved in a collaboration project dedicated to empowering Indonesian youths and communities through digital-based farming and agripreneurship, to innovate for a sustainable, profitable and inclusive cocoa value chain.
Responsible digital payments aim for increased transparency, better access to information, financial inclusion, and higher incomes, especially for female cocoa farmers.
Locally from our own progress and surrounding, operational environment, we have linkages with the World Bank office in PNG, World Vision, the Cocoa Board of Papua New Guinea ??, the Government of PNG, the PNG Cooperative Society Network and sister Farmer Association.
For our Cocoa adding value project we have connections with Bear Mills Foodtech of Germany, the Artisans Australia and markets in Australia.
We are beginning to be exposed and looking forward to our relations with MIT SOLVE. We have been operating through conventional simple emails and telephone and WhatsApp.
Digitalisation globally in the Digitized Cocoa Economy is needed to move us forward and be more competitive.
Adopting the 9 strategies from the link below is the applicable platforms to be intergrated and enhanced for adoptation.
The Society has the experience I'm cocoa trading from our farmers blocks to our buyers in Europe and Asia.
We have decentralized structures that mobilize stock to be freighted to main shed in Madang town for inspections and fumigation and shipment to our buyers. This systems needed to be digitized for our empowerment operations locally and linkages globally.
Below is an explanation of our Village bank initiated by World Vision through the ANCP Australian NGO Cooperations Program, under DFAT. The ANCP project was parrelly implemented with the World Bank PPAP project for farmers to start the Village Savings Groups from incomes earned from cocoa. As a result 32 groups Village Savings Group were formed.
THE VILLAGE BANK SAVINGS GROUP MODEL ADOPTED BY 32 SAVINGS GROUP THAT NEEDED FURTHER EMPOWERMENT.
Cluster Groups from same ethnical cultural settings form a savings groups. By laws are made by the group to govern the saving groups. By laws include;
1. How often a savings group meeting is to be held.
2. Agreeing for an amount of cash to be saved in every meetings
3.Which member keeps the galvanized savings box
4. Which two hold separate keys to open box
5. The Chairman, the Secretary and the treasurer appointed
6. Pass book are issued to all members of the saving group to record savings and credit of respective member.
7. Loan issued to a member if the savings group is monitored by the savings group and discussed in their savings group meetings
8. Open up account with a commercial Bank
9.Appointed three people to sign in the People's Micro Bank where savings in the wooden box are move to the bank for deposits.
10.As a group can get a loan for a bigger capital asset like a boat and outboard motor.
11. The rules are very strict and becomes a norm to the members.
An amount as agreed for savings per meeting should consider the case accessibility on the area. With the Cocoa cash economy increased cash earned allows meetings to be conducted every forthright and if the all agreed to pay PGK 100.00, then all must pay K100. So in a month a single member saves PGK 200 that is recorded in his passion.
The savings group is only for the savings group members and graduate (time appointed to exit) they distribute the cash or start al over again.
with this savings , they can build a cocoa dryers or expand their blocks or venture into SME.
The Savings groups are still in existences with some graduated and already buying boats and outboard motors.
Accounts in the bank are put for safe Keeping. Double recording of the fund as it also recorded in respective savings group and entered in the pass book.
Our solution if the digitized Cocoa Economy will boost this Village Bank to the next level.
- Individual consumers or stakeholders (B2C)
Using digital tools to increase access to financial services.
Securing loans and accessing financial services is often challenging for cocoa farmers like us. Risks related to cocoa production, low financial literature and high transaction costs are seen as obstacles to financial services. To overcome these obstacles, the use of financial digital services is increasing adopted in some small holder cooperatives globally. As such digital inclusive finance are:
- Agri-wallet: This tool gives farmers, buyers and agro-stores easier access to financing from a global network of lenders. As a farmer, you will receive your income through your digital wallet, and you can use the money to purchase inputs like seeds and fertiliser from participating stores. This means that the money earned through the Agri-wallet can only be spent in the agricultural supply chain. You can also use the wallet for savings; the higher your savings, the higher the chance you are eligible for larger
- Farmerline: Farmerline connects farmers to financing through provision of innovative mobile technology across Africa. As a farmer, you are given digital identity cards that you can use for all transactions. Farmerline mainly offers farming supplies on credit to cocoa producers. The input credit service comes with a flexible repayment system that allows farmers to pay back any amount at any time during the season. Farmerline also offers training in agricultural practices, up-to-date weather forecasts and business tips, aiming to help farmers increase their yields.
- CocoaTrace (developed by Koltiva): With the mobile and web applications, cocoa smallholders, traders, the processing industry, as well as input suppliers and banks are connected though end-to-end traceability platforms. Through the app FarmCloud, a farmer can apply for a loan, while loan officers can assess creditworthiness based on the data stored in the app. Data in the cloud platforms are collected by traders, input suppliers, Koltiva field agents and extension officers.
The use of digital tools by financial institutions and lenders
A more traditional way to access finance in the cocoa sector is through microfinance institutions (MFIs). Examples of MFIs are Financiera Confianza (Peru), Advans (Ivory Coast) and Agronomika (Philippines.. Note that MFIs mainly channel credit to cocoa farmers through cooperatives or SMEs.
Many MFIs have embracedthe use if their financial service offer. Advans, for instance, works through digital banking services to reach clients, including cocoa farmers. This mobile service contains a current and savings account and other financial services such as access to digital school loans, and wallet to bank (or vice versa) transfer services.
9 tips to go digital in the cocoa sector https://www.cbi.eu/market-info...
Adopting the Digitized Economy is a dream come true, a plan that we have seeking opportunities to develop.
Through Digitization, the financial sector boosts innovation, entrepreneurship and our economy. It plays a key role in promoting growth, pro employment and macroeconomics conditions.
Below presentations through link https://itu.int/ can be adopted
Ten benefits of digital financial management
Digital financial management can bring a lot of benefits to businesses. One of the key benefits is that it eliminates the need to print and store paper documents. We summed up the benefits of digital financial management for you. Read carefully and you can make your life easier in the future.
1. Access to real-time information
All information recorded in the financial management systems can be viewed in real time, which means that it can be used efficiently to support management and decision-making. Indeed, fast access to data provides businesses with tools for developing new ways to use information.
2. Better decision-making
When all the relevant financial information is easily accessible, decisions and solutions can be based on facts. Predicting future developments is easier, too. Thanks to easy access to information, your accountants can support you more efficiently.
3. Freedom
A digital financial management system is with you everywhere you go. You can perform everyday tasks and check reports when and where it suits you. All you need is an internet connection and a computer or mobile device. Many tasks can easily be done on a smartphone. At the same time, outsourcing financial management tasks to your accountants is also easier.
4. Ease and efficiency
With digital financial management, you can forget endless piles of paper. Many common tasks can be performed faster or even automated altogether. Receiving and sending invoices is a good example of such tasks. You no longer have to send invoices by post or spend time opening envelopes. Everything can be done with the click of a mouse. This means that you can focus on more important tasks, and it also helps to reduce costs.
5. Flexibility
Digital systems enable flexible collaboration and interaction with your accountants. Different tasks can be easily modified and reassigned. You can communicate flexibly and conveniently face to face, by email or phone, or via video conferencing.
6. Transparency of information
All financial management information is available to everyone who needs it. The availability and accessibility of the information can be restricted as necessary. This ensures security and prevents information overload.
7. Integration of financial management into other business operations
Financial management will no longer be a separate unit within the company. When everyone has access to all the relevant information, it can be used efficiently in all aspects of business. Using their expertise, your accountants can bring a much-needed financial perspective to your business’ decision-making processes.
8. Mobile working
Switching to digital financial management helps to make mobile working possible. When all the necessary information and tools can be accessed anywhere, there is no need to bring everyone together in the same place. This opens up new opportunities for managing work and allows for the organisation of work according to the needs of individual employees. This can significantly improve job satisfaction.
9. Equality
Good access to information improves employee equality and encourages participation and commitment.
10. Environmental friendliness
Digital systems reduce paper consumption and printing needs. When information is distributed through digital channels, there is less need for physical deliveries, which helps to reduce traffic-related emissions.
References;
https://www.cbi.eu/market-info...
https://itu.int/ Presentations.
Manager