May 2012 C&CI • ICO Report • 17
The two signatories, working with the interested developing country or countries, are called on by the MOU to identify areas where the latter could benefit from techni- cal co-operation and to assist in the imple- mentation of any measures. The ABC and the ICO will set the objec-
tives for such triangular cooperation, as well as the financial and in-kind contribu- tions for any activities. They will also be responsible for monitoring and evaluating progress. The specific areas of coopera- tion set by the MOU are capacity-building and training initiatives, focused on strengthening the entire coffee value chain, but especially improving the living stan- dards of coffee farmer, short-term technical cooperation from Brazilian institutions and from the ICO and the development of cof- fee-related activities, such as research and studies.
Downsizing at ICO
However, since taking up his job last November, Mr Oliveira Silva’s main preoc- cupation has been to put the ICO on a much sounder financial footing by saving money on accommodation costs – which account for 22 per cent of annual expendi- ture – and using the resources freed up more effectively in doing the job it is man- dated to do by the new (2007) International Coffee Agreement (ICA). His proposal, which was endorsed by
the ICO’s ruling council at the March meeting, means that the agency will vacate the second of the two floors that it currently occupies at its Central London site and refurbish the first floor to accom- modate its entire staff. The unwanted space will be sub-let to either the International Cocoa Organization (ICCO), or a commercial tenant. The ICCO will be looking for a new
home in London if the decision – which was scheduled to be taken by its members at their March 26-30 meeting in the Ecuadorian coastal resort of Guayaquil – is to turn down Côte d’Ivoire’s long-standing offer of rent-free accommodation in Abidjan. As a result of downsizing, the ICO is planning for possibly the first ever budget based on zero-growth in members’ contri- butions towards running costs in 2012/13, which observers said would be, if not unprecedented, a very rare achievement. In the current coffee year member govern- ments are paying £2.894 million of budget- ed expenditure of £3.22 million.
Mr Oliveira Silva’s plans for cutting running costs were approved, as was a deal to give producing countries greater access to technical assistance
tries mitigating risk. Matt Horsburgh of the Twin Trading Company spoke about its approach to building capacity for small- holder co-operatives to manage risks, while Marc Sadler, from the World Bank’s agriculture and rural development depart- ment, described how his department focuses on assisting clients in identifying and managing agricultural risks.
Other business Forum holds
second meeting The ICO’s Forum on Coffee Sector Finance held its second meeting, chaired by the USA’s Amy Karpel, during its latest ses- sion, focusing on the role that intermedi- aries, such as producer associations, gov- ernments and other bodies, can play in helping smaller coffee growers understand and gain access to risk-management and finance tools – an issue identified as one needing further study at the forum’s first meeting last September.
As a result of downsizing, the
ICO is planning for possibly the first ever budget based on zero-growth in members’ contributions towards running costs
"This is an extremely important issue
since, despite the existence of viable risk management tools, small-and medium- scale producers often find it difficult to gain access to these instruments," Mr Oliveira Silva said. Six speakers made presentations at the
forum’s meeting, including Coffee Board of India chairman Jawaid Akhtar, who outlined what his country is doing to help its coffee farmers manage risk, and Mexico’s agricul- ture undersecretary, Ernesto Fernández Arias, who described his government pro- gramme in this area. Xinia Chaves, Costa Rica’s vice minister
of agriculture, and Edilson Alcântara, direc- tor of the coffee department in the ministry of agriculture, explained how their coun-
Also during the latest meeting, the promo- tion and market development committee - one of the new ICO bodies, like the forum, created by the 2007 ICA – held its first meeting , which was chaired by Italy’s Andrea Illy. Mr Illy outlined the preliminary work
needed to devise a three-year work pro- gramme for the committee - consultations with other stakeholders to determine what is feasible and then finding partners and allocating resources. The aim is to present the results at the ICO’s next session, which will be held on London on September 24-28. At this meeting, ICO members will con-
tinue their discussions on how to celebrate the agency’s 50th birthday next year, set the budget for 2012/13 and consolidate the agency’s work in many areas, although the forum will not meet during this session. In addition, the ICO will organise a seminar on the economic, social and environmental impact of certification on the whole supply chain. Mr Silva welcomed the ICO’s endorse-
ment of the MOU, calling it possibly the most important result of the agency’s latest meeting, the first he has run as its new boss, with the backing for his cost-cutting measures running it a close second. It remains to be seen, however, how
effective the MOU will be, just as it does the innovative forum. But both are poten- tially useful ways in which the ICO can help producing countries – an area in which Brazil, when it was considering whether to remain a member a few years back, thought not enough was being done. The world’s biggest and therefore most
powerful ICO producer is now playing a much more active part in ICO affairs than for many years. Its renewed interest has been underlined by its appointment of a perma- nent ambassador to the agency and its determination to have one of its nationals in the top job, following Colombian Nestor Osorio’s resignation in 2010. C&CI
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