Understanding Sustainable Value Capture for Ghana’s Cocoa Farmers on the Cocoa-Chocolate Value Chain

Abstract

The sustainability of cocoa farmers' livelihoods is a critical concern within the academic discourse surrounding the Cocoa-chocolate value chain, aligning with SDG goal 1 of eradicating poverty. Addressing the challenges cocoa farmers face and developing sustainable solutions is paramount, as their low-income status may lead to a shift to alternative cash crops, surrendering lands for illegal mining activities (affecting the environment negatively), and a decline in the cocoa bean supply. Existing literature has explored the limited value capture of cocoa farmers. However, it needs to fully elucidate the complex interplay between local and international interests that undermine efforts to improve farmers' livelihoods. This study uses the Sustainable Livelihood Framework and the Global Production Network to assess these dynamics. The analysis uncovers significant obstacles smallholder farmers face in achieving sustainable incomes, including power imbalances and embeddedness within firm networks. Some policy recommendations, including the de-commodification of Cocoa beans, are proposed.