Part E. Case Studies
Agri-commodity Hub in West Coast Africa combining cocoa exports and food aid
Reference: 91
Background
Collaborations between companies and humanitarian organizations can lead to shared resilience. A logistics service provider (LSP) established a 5,000 m³ agricultural commodity facility in West Coast Africa for cocoa bean exports to Europe. The hub was designed to cope with climate challenges: located close to farms, with controlled humidity (below 70%), moisture (6–8%), and temperature (below 25°C), as well as an integrated logistics service from farm to ship. However, volatile volumes due to seasonal peaks and varying yields posed a challenge.
What was done & Value creation
To address this, the LSP partnered with a humanitarian organization to store and distribute rice within the region. By alternating between cocoa and rice, the partners aligned logistics schedules and shared infrastructure, ensuring profitability for the LSP – which exceeded 40% - while expanding humanitarian reach. The storage facility thus became both a commercial hub and a distribution channel for food aid, supporting local development.
This business case demonstrates how co-investment in logistics capacity can deliver both commercial returns and social benefits, providing a model for long-term resilience planning.
Looking forward
Climate shocks driving extreme price volatility, for example, the world market price for cocoa rose by 300% in February 2024 compared to the previous year due to droughts and record temperatures in West Africa.83 Partnerships like this hub are becoming essential for both supply continuity and regional food security.