Establishing a sustainable cocoa supply chain in Equateur province Note: This project has been cancelled, because the applicant has requested to prematurely terminate the project.The Equateur province in northwest DR Congo has a very conducive climate for growing cocoa. Although the sector used to be fairly developed, much of the industry collapsed after the nationalisations in the seventies and the wars that followed. Nowadays, cocoa trees are still present, but hardly any trade or investments in the sector take place.The applicant, Continaf B.V. from the Netherlands is a worldwide trader in cocoa. With sourcing offices in Cameroon, Ivory Coast, Ghana, Nigeria and Indonesia, the company ranks in the top five of cocoa traders around the world.Local partner in this project is BTC Export. This company was just recently established, but already successfully exports cocoa from the Bas Congo province.Continaf B.V. and BTC Export now jointly want to develop the cocoa sector in Equateur by training local smallholder farmers and by establishing all infrastructures required to process cocoa beans properly and enable the farmers to access the world market.A joint venture will be established which will operate 5 fermentation and drying depots throughout the Province and one central depot in Mbandaka, the Province Capital. From Mbandaka, the processed beans will be shipped to Kinshasa and then transported by road to the harbour of Boma from which it will be exported.Although some plantations and some limited trading does exist in Equateur, this project will be the first in the region to actively train the cocoa farmers, organise them in cooperatives and allow them to earn a premium by becoming certified cocoa farmers.Corporate Social Responsibility (CSR)The cocoa production and processing will be UTZ and/or Rainforest Alliance certified. The choice will depend on the demand of Continaf's clients and on practical issues in implementation. Both certification standards have strict standards on Good Agricultural Practices, Social criteria and Environmental criteria. With the premium earned on this certified cocoa, education programmes will be established in the districts.Furthermore, the project will offer its employees proper working conditions, a good salary and additional benefits.Impact•	Employment and working conditionsThe salaries are similar to Kinshasa standards (USD 150 per month). In addition, health insurance, pension scheme, transport and lunch will be provided. Given the fact that there is hardly any formal employment in Mbandaka or the Equateur Province, these conditions are highly satisfactory.•	Innovation / Transfer of knowledgeIn the past, the cocoa sector in Equateur was thriving. Yet, after the nationalisation in the seventies and the war that followed, hardly any infrastructure remains. There are still some plantations (both private and public) that have their own drying facilities. Yet, none of them processes cocoa from individual farmers. Occasionally, traders from Cameroon cross the border to buy cocoa at rock bottom prices but farmers cannot rely on them as a continuous marketing channel.This project will actively contribute to increasing production and quality levels at smallholder level, as it will pay a fair price to the farmers, and as it will invest in processing and transport facilities, this project is deemed to be sufficiently innovative for the Equateur Province (similar in size as France).•	Chain effects2,000 farmers will be able to gain a yearly income of around 700 euro by supplying their cocoa to the joint venture. These farmers will be organised in 40 cooperatives (approximately one cooperative per village) and through these structures, receive training on GAP and UTZ or Rainforest Alliance. Most of these farmers never received any training before as the area has been neglected for a long time. The GAP principles will not only be useful for cocoa production, but the principles can be applied in their general farming business as well, leading to better results overall.There are no effects on the chain, as the cocoa will be exported.•	Impact on the sectorLimited impact. Some local NGOs will be involved to assist the project partners in their training programme and their efforts to organise the farmers in cooperatives.Furthermore, local schools will gain support from the community fund that will be established as part of the UTZ or Rainforest Alliance certification.•	EnvironmentWith the GAP, UTZ and/or Rainforest Alliance certification standards, environmental aspects will be taken into account as well. Measures include erosion control, maintaining biodiversity and proper waste collection and separation.•	Position of women25% of all staff will be female. These will be on medium-/high-level. To establish a sustainable cocoa supply chain in Equateur Province allowing at least 2,000 smallholder farmers to become UTZ or Rainforest Alliance certified, providing them with access to the world market and gain a premium rate for their cocoa on top.