Factors influencing success of the cocoa (Theobroma cacao) product certification program in tropical areas

Abstract

Cocoa is one of the leading national commodities after rubber, palm oil, coffee, and tea. Cocoa has a significant impact on the economy in Central Sulawesi, especially in terms of creating new jobs and sources of income for farmers. The decline in cocoa productivity and quality will affect farmers' income in rural areas. In recent years, several cocoa industry and cocoa trading companies such as Mars Inc., Mondelez International, Cargill, Barry Callebout, and JB Cocoa have begun to focus on developing product certification programs for selling by allocating several CSR (Corporate Social Responsibility) funds to conduct training and technical assistance in cultivation (pruning, fertilizing, frequent harvesting and sanitation) for cocoa. Therefore, several socializing requirements or compliance standards must be met by farmers who are members of the certification program, namely the CoC (Code of Conduct) established by certification bodies such as UTZ. The purpose of this study was to analyze the factors that influence the success of the cocoa certification program in Central Sulawesi. 80 families were chosen as number of samples. A logistic regression model was used to answer the research objectives. The results showed that the land area, farmer's age, level/year of farmer's education had very small influence on the success of the certification program in Central Sulawesi. The linkage of debt with traders considerably influences the success of product certification programs. Cocoa production, income factors, traders' domicile, and merchant service patterns have a significant influence on the success of the certification program