Cocoa Certification Research Articles

From chocolate to palm oil: The future of Indonesia's cocoa plantations.

Indonesia is the world's third largest cocoa producer, but production is decreasing since 2011. We revisited cocoa farmers for an environmental assessment in Luwu Timur, Sulawesi, 7months after a socio-economic survey on cocoa certification outcomes and observed many cocoa plantations being converted into oil palm and maize. Including our field data as well as secondary data on commodity prices and yields, we outline reasons for cocoa conversion, potential consequences for biodiversity, and assess the future outlook for the Indonesian cocoa sector. Low cocoa productivity, volatile cocoa prices and higher revenue for oil palm, among others, drive land-use change. If shade trees are cut during cocoa conversion, it may have negative implications for biodiversity. Solutions to low soil fertility, omnipresent pests and diseases, and stable producer prices are needed to increase profitability of cocoa and prevent conversion of cocoa agroforests to oil palm monocultures.

Rainforest Alliance-UTZ cocoa certification scheme adoption: Determinants and financial implications for cocoa production in the Centre region of Cameroon

This study evaluates the level of adoption of the Rainforest Alliance-UTZ cocoa certification scheme in the Centre region of Cameroon, ascertains the drivers of adoption, and evaluates the financial implications of the levels of adoption. Using cross-sectional data obtained from 100 cocoa growers in the Central region of Cameroon and employing a Generalised Ordered Logit estimation technique alongside a one-way ANOVA test and Tukey’s test for post-hoc estimations, we show that 50%, 17%, and 33% of cocoa growers are complete adopters, partial adopters, and non-adopters of the Rainforest Alliance-UTZ cocoa certification scheme, respectively. The findings also reveal that the likelihood of having partial or complete adoption is higher among farmers who have introduced orange trees in their orchards, own more extensive orchards, and have more years of experience in cocoa farming. Furthermore, the likelihood of having complete adoption is higher for farmers with a lower planting density in their orchards and a tertiary level of schooling. Farmer’s age has a mitigated effect on the likelihood of adopting certification schemes by reducing the likelihood of having partial or complete adoption against non-adoption and at the same time raising the likelihood of complete adoption against no or partial adoption. The study also concludes that the financial performance of cocoa growers varies based on their level of adoption of the Rainforest Alliance-UTZ certification scheme. Farmers who have achieved certification status tend to have higher farm earnings. Based on these findings, non-adopters and partial adopters are encouraged to fully adhere to the Rainforest Alliance-UTZ certification standards. By doing so, they can increase their financial gains, enhance their livelihoods, and reduce the negative environmental impacts of cocoa farming.

Contribution of Sustainable Cocoa Production to Poverty Reduction in Nigeria

The study examined the contribution of sustainable cocoa certification programme to poverty reduction in Nigeria. A multistage sampling procedure was used to select 360 cocoa farmers (certified and non-certified farmers) from 3 major cocoa-producing states in the country. The Alkire-Foster method of multidimensional poverty index was used along with descriptive statistics to analyze the data collected. The study revealed that the annual average cocoa income of certified farmers and non-certified farmers is ₦954,791.7 and ₦663,742.4 respectively. More than half (63%) of the cocoa farmers are multidimensionally poor and the majority (80%) of them are non-certified cocoa farmers. Therefore, policymakers should develop programme that address multidimensional poverty among cocoa farmers, such as providing access to electricity, drinking water, health care, and sanitation. In addition, more awareness should be created on cocoa certification programme to encourage more participation among cocoa farmers.

Sustainable Pathways: Exploring Farmers' Perceptions of Cocoa Certification Programme in South-West, Nigeria

The significance of sustainable cocoa production has been widely studied using various methods and models, however, the farmers’ viewpoints on cocoa certification programme remained largely unexplored. This study attempts to examine the perceptions of farmers on certification programme towards sustainable cocoa production in the South-West, of Nigeria. Multistage sampling procedures were used to collect primary data through the aid of a well-structured questionnaire from three hundred and sixty (360) cocoa farmers (certified and non-certified) in Ondo, Osun and Ogun States. Descriptive statistics such as frequency, mean and percentage as well as Independent T-test were used to analyse the data. The study revealed that the majority (68.9%) of the respondents were male, and also married which implies that they have access to family labour. The main reason why non-certified cocoa farmers did not participate in the programme is due to inadequate awareness, while the major bodies creating awareness on cocoa certification are the exporters and the License buying agents. The study further revealed that the promotion of good agricultural practices, provision of premium on cocoa beans sold, and access to market linkages were perceived and ranked highest among the certified farmers. The major constraints identified with the programme are pest and disease, delay in premium payment, climate change, and inadequate storage facilities. The results of the T-test revealed that there were significant differences between both the income and the output of certified cocoa farmers and that of non-certified cocoa farmers. The study therefore recommended that more awareness of cocoa certification programmes should be created not only by the cocoa Exporters and Licensed buying agents, but also by Government agencies and institutions, and policymakers should also work to ensure that certified farmers receive fair and competitive premium prices for their cocoa beans.

Supply chain analysis and cocoa certification partnership patterns in East Kolaka District

This study aims to analyze product flow, financial flow and information flow of certified and non-certified cocoa supply chain in East Kolaka Patent District. The method used in determining the sample is rendom sampling the number of company-assisted certified farmers in East Kolaka Regency spread across 2 sub-districts (Aere and Lambandia) with a population of 763 people and non-certified cocoa farmers in 4 sub-districts (Aere, Lambandia, Poli-Polia and Rate-Rate) with a population of 328 people, then using the snowball method to determine other prospective respondents. The research method used is qualitative descriptive. The certified and non-certified cocoa supply chain in East Kolaka Regency has 3 (three) streams, namely product flow, financial flow and information flow. The flow of certified cocoa products flows from farmers, traders, collectors and exporters. Financial flows flow from exporters to farmers. And a stream of information flows from exporters to farmers. While non-certified cocoa product flow flows from farmers, traders, collectors and other companies. Financial flows flow from collectors to farmers and information flows from collectors to farmers.

Cocoa Certification in Cameroon: Socioeconomic Determinants and Performance of Producers in Mbam Division, Center Region

Aims: The present research aimed to analyse the constraints and challenges of the certification of cocoa in the mbam division, center region of cameroon.
 Study Design: In this study, the simple random sampling method was used for the selection of cocoa farmers in the study.
 Place and Duration of Study: The study was conducted in the ombessa and bokito sub divisions of the mbam and inoubou division, center region of cameroon in 2022.
 Methodology: A total of 300 respondent cocoa farmers were randomly selected from two different sub divisions: ombessa (170) and bokito (130) farmers. Other stakeholders, exporters and agricultural extension experts were also consulted.
 Results: Field findings revealed that 66% of cocoa farmers in mbam have adopted certification against 34% who have not yet adopted with regards to gender, there is a high proportion of adopters of cocoa certification (65.96% for men and 66.67% for women) than the non-adopters (34.04% for men against 33.33% for the women). furthermore, majority (80%) of the respondents who have adopted cocoa certification are below 35 years of age against 20% who have not adopted. regarding the level of education, field findings also revealed that 100% of respondents with university studies have adopted the certification while a greater percent (80%) of those who have never been to school have not adopted. the results also show that majority (39%) of the respondents have an experience of 21 to 30 years in cocoa farming. Furthermore, it was found on the field that the production of certified cocoa is a decreasing function of the area exploited; it is 83.33% at less than 5ha, to 54.17% for farms of more than 10ha. majority (70.83%) of the adopters of cocoa certification here belong to producer organizations (gic, cooperatives) against 53.57% who adopted without belonging to any producer organizations. furthermore, findings also show that producers of both certified and non-certified cocoa have a better total income with an average of 5,578,812.5 fcfa, than those who produce only certified cocoa and non-certified producers.
 Conclusion: The study concluded that there is an inverse relationship between the size of the cocoa plantation and the adoption of certification. it also shows that the producers of certified cocoa have a better technical and economic performance than the others. The study therefore recommends that institutions should multiply financial incentives and other facilities for certified cocoa producers so that the remuneration for their effort is fair and equitable to enable them live a decent life.

COMPARATIVE ANALYSIS OF COCOA CERTIFICATION AND NON-CERTIFICATION FARMING IN KELAPA DUA VILLAGE, ANREAPI DISTRICT, POLEWALI MANDAR REGENCY

Cocoa is one of the plantation crops that is widely cultivated in Polewali Mandar, the cocoa certification program is an effort to increase cocoa production and prices at the farm level. This study aims to determine the comparison of the income level of cocoa farms through the cocoa certification program and farms that have never participated in the certification program while developing the cocoa commodity, as well as to determine the comparison of R/C ratio and B/C ratio values. The implementation of this research began in May to July 2021, in Kelapa Dua village. Data collection techniques used structured interviews using questionnaires and question and answer. The results showed that the average income achieved by certified cocoa farmers is Rs 5,572.75 per/ha. When compared to the average income of non-certified cocoa farmers is Rs 4,715,429 per/ha. The difference between the income of certified and non-certified cocoa farmers is Rp. 857,325. The results of the R/C ratio analysis for certified cocoa can be planted by looking at the R/C ratio value of 2.40 and for non-certified cocoa has an R/C ratio value of 2.27. Profit B/C ratio result as a result of certified and non-certified income is 3.12. This shows that both certified and non-certified cocoa are feasible to develop, but certified cocoa has a greater income than non-certified cocoa.

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

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

Do cocoa certification schemes improve producers' performance ? Evidence from Centre Region Cameroon

In agricultural value chains, in particular cocoa, environmental, and social standards are becoming increasingly important in meeting sustainability challenges. The main aim of this article is to examine the role of certification primarily on the yields and incomes of cocoa farmers in the Central Cameroon region. From June to July 2017, a survey of certified and non-certified cocoa producers was conducted in the districts of Ngoumou and Mbangassina. At the end of the survey, a total sample of 114 certified and non-certified producers was obtained. Using the cost-benefit analysis, in this preliminary phase of the certification process, the results show that there is no significant difference in costs between certified and non-certified producers for each of the districts. There is also no price difference between certified and non-certified cocoa and the payment of the certification premium is not systematically distributed. However, the profit analysis shows on average significantly higher yields and profits for certified producers. Nevertheless, this increase in profits would mainly be due to the implementation of good agricultural practices rather than the certification itself. Additionally, the exploration of on farm income shows that cocoa-based households remain on average below the poverty line. One of the long-term challenges for the cocoa sector in Cameroon is to combine the government's objective of increasing production with that of improving quality. To this end, the advantages of the predominantly agroforestry systems present in Cameroon should be exploited to produce a critical mass of quality and sustainable cocoa that would allow a significant increase in producer prices.

Promoting cocoa agroforestry under conditions of separated ownership of land and trees: Strengthening customary tenure institutions in Cameroon

Formal and customary land tenure can encourage the adoption of sustainable land management practices. Yet, certain forms of customary land tenure can deter farmers from practicing agroforestry. One such example is the case of cocoa agroforestry in the Centre region of Cameroon, where cocoa orchards and the fruit trees that grow inside were traditionally inherited separately to different family members. While customary land owners hesitate to allow tree cultivation in their cocoa orchards as they are afraid of losing out while sharing their land, the tree owners would often like to expand the number of fruit trees, but lack the land to do so. This study assessed how various policy instruments can enhance the adoption of agroforestry in this context. Using the Coase theorem, we analyzed seven agroforestry systems of cocoa in association with Safout (Dacryodes edulis), Bush mango (Irvingia gabonensis) and/or Ndjansang (Ricinodendron heudelotii). Land sharing with fruit producers reduced the cocoa mono-croppers’ farm income by 40–80%, while fruit producers benefited especially from the cultivation of Bush mango. According to our baseline Coase theorem results, cocoa agroforestry was socially efficient when 13–60 fruit trees/ha were planted, providing a positive net social benefit (248,753 to 3,394,829 FCFA/ha). The policy intervention scenarios (cocoa certification, payment from voluntary carbon projects and reform of the current customary tenure system) led to more fruit trees being planted (14–71 trees/ha) and increased the net social benefit (266,418 to 5,753,595 FCFA/ha). Both farmer categories gained in each of the scenarios, with the fruit producers benefiting more than the cocoa croppers. Among the investigated policy instruments, a land tenure reform inducing a fair revenue sharing proved to be the most effective in encouraging tree planting in cocoa farms.

Orchestrating a Multi-Stakeholder Supply Chain Network: The Case of Exporters in Cocoa Certification in Cote d’Ivoire

Using a case study, this article uses the concept of network orchestration to examine the role of exporters in the implementation of voluntary cocoa certification in Cote d’Ivoire. To this end, data were collected from literature reviews, surveys of two exporters, and 20 cooperatives. Actor linkage matrix, actor linkage map and discourse analysis are used to understand the role of exporters in cocoa certification in Cote d’Ivoire. The findings show that exporters not only participate in the construction of a network of actors around the implementation of cocoa certification, but above all they pilot the network to facilitate certification implementation by actively participating in the mobility of knowledge and financial resources within the network and managing the certification process. However, although exporters play a key role in the implementation of voluntary certifications, their role as network orchestrator is dilemmatic. Indeed, they use their position as orchestrator to control sales of cooperatives’ certified cocoa and their premium.JEL Codes: O350, Q55

Does privatizing advisory services guarantee better services? Evidence from advisory services pertaining to cocoa certification in Côte d’Ivoire

ABSTRACT Purpose This study investigated the impact of privatization of advisory services on the quality of the services. Design/methodology/approach The front- and back-office dimensions of advisory activities were analyzed through interviews with 43 advisers involved in the advisory services provided as part of a cocoa exporter's certification program. Findings Our results showed that the ratio of advisors per producer in the private advisory system is too high, and the means of transport for advisors are inadequate. The training received by the advisors is strongly oriented towards mastering technical subjects related to certification requirements, while soft or process topics that would provide them with knowledge and skills required to co-produce with farmers is neglected. Regarding the front office dimension, advice to cocoa producers is largely prescriptive and fails to co-produce knowledge that is relevant to their needs. Practical implications The study produced empirical data that allows us to go beyond the theoretical farm advice approach derived from micro-economic modeling. Theoretical implications Our findings weaken the arguments in favor of privatization of farm advisory services. Originality/value The study provides insights into the consequence of privatizing farm advisory services in the West Africa context by producing one of the first study on this subject in Côte d'Ivoire.

Participation in UTZ-RA voluntary cocoa certification scheme and its impact on smallholder welfare: Evidence from Ghana

The study analyzed the determinants and extent of participation in UTZ-RA cocoa certification program as well as its impacts on smallholder farmers' welfare. Using cross-sectional data collected from 296 cocoa farmers in Ghana and employing the Cragg double hurdle model to analyse participation, the study also controls for sample selection bias using propensity score matching technique. The results revealed that household size, years of formal education, non-farm income, sex of respondent, quantity of man-hours of labour used in cocoa production as well as dependency ratio influenced participation. The findings also reveal that the UTZ-RA cocoa certification program increased yield and household income. It however had a negative impact on the food security status of cocoa farming households. Data from this paper has demonstrated that increased productivity and income from certification of commodities might not necessarily lead to enhanced food security status of enrolled farmers. The study recommends that, the Rainforest Alliance scheme should consider food security indicators in the next revised edition of their code of conduct which has since been finalized for implementation. Employment of different food security measurement tools in the revised codes is highly recommended. This will provide a better understanding of the synergies and trade-offs that exist or are likely to exist between cash crop production and food security.

Performance Analysis of Cocoa Certification Program in Polewali Mandar Regency

One of the agricultural development income is through agribusiness activities oriented to increasing competitiveness and sustainable economic development of the community, which is carried out within the framework of autonomy to strengthen the regional economy. Cocoa is a strategic commodity in case, firstly, Indonesia is the number two cocoa producer in the world after Ivory Coast, with production of 809,586 tons in 2012. In 2012, this commodity has contributed foreign exchange of US $ 1.1 billion, which is the third foreign exchange earnings spread after oil palm and rubber. Secondly, this product involves 95% of smallholder farmers with increased land ownership of 0.5-2 ha. Thus, the development of the cocoa business will directly or indirectly affect the microeconomics. This study aims to determine the performance and the level of satisfaction of the cocoa certification program in one of cocoa production center in Polewali Mandar. This study uses Importance Performance Analysis (IPA). The results of this study indicate that the achievement of the performance of the cocoa certification program has been running quite well, but there are still some that have not worked optimally where the level of satisfaction of the cocoa certification program that 78.03% are satisfied with the program's performance cocoa certification and 21.97% farmers were not satisfied with the performance of the cocoa certification program carried out in Polewali Mandar.

The Effect of Cocoa Certification Program in Increasing Production and Farmers Income in Tapango Barat Village, Tapango District, Polewali Mandar Regency

The production of Indonesian cocoa beans is significantly increasing but is not in line with its quality. The quality has decreased such as less fermented, not dry, inconsistency of the size & taste. Since then, reputation of Indonesia cocoa beans was considered lower than international standard which caused price is relatively cheap compared to other production countries. The low quality of cocoa beans is due to that the age of cocoa plants in Indonesia is more than 17 years so productivity has declined, besides that cocoa pod borer since 1995 until now has not been eradicated 100%. So, the age of the plant greatly influences the amount of fruit that can be produced. The benefits of cocoa certification program to the farmers production and income are the creation of agribusiness insight and industrial culture in the community, the development of downstream agribusiness subsystem activities in the form of post-harvest, processing and marketing activities which ultimately increase farmers' income and welfare through increased production also will increased foreign exchange earnings for Country. Tapango Barat is a cocoa development center area certified by the Rainforest Alliance (RA) from 2015 until now with the aim of describing the cocoa certification program in Tapango Barat Village, calculating the level of farmers' income and analyzing the effect of the cocoa certification program on increasing farmer production and income. This research was conducted in January – April 2017 using descriptive, income analysis, and multiple regression analysis methods. The results showed that the Mesa Peolo farmer group certified by the Rainforest Alliance (RA) had an income of IDR 17,106,039.073 each year. This shows that the production results from certification program directly influence cocoa farmers’ income.

Smallholder participation and procedural compliance with sustainable cocoa certification programs

ABSTRACTThird-party certification programs promise to improve livelihoods and promote sustainable production, yet achieving such goals rests on certification programs working well with smallholder producers. However, little is known about how these programs work in practice from the perspective of smallholder cocoa producers. Furthermore, we do not know if third-party cocoa certification programs work the same way, even within common countries/contexts. Therefore, we examine three different smallholder cocoa certification schemes operating in Ghana to understand how smallholder cocoa farmers perceive the certification program requirements, price premium arrangements, and inspection regimes, among other things. While we find that smallholder cocoa farmers/stakeholders have a positive view of certification programs and their requirements, the results reveal that smallholder cocoa farmers are inadequately informed about the certification programs, disconnected from price premium management, and not participating in the compliance verification regimes required by the various standards. Our findings suggest improvements to the structures and procedures for certification participation, price premium management, and smallholder-level verification may increase the likelihood that third-party certification schemes sustainably improve livelihoods and agroecological systems.

Dialog dan Tindakan Kolektif Kelompok Tani dalam Program Sertifikasi Kakao di Provinsi Sulawesi Barat

The cocoa certification program is the implementation of cocoa management practices that meet sustainable agricultural standards. This program is part of the commitment of cocoa sector stakeholders to realize sustainable cocoa. West Sulawesi Province is one of cocoa production centers in Indonesia. The implementation of cocoa certification in this province is still low, about 8.4% of the total cocoa farmers. This study aims to determine the potential for sustainability of the adoption of Cocoa Certification from development communication aspect by conducting an assessment on dialogue and collective action of farmer groups. The research conducted in Luyo Sub-District Polewali Mandar District West Sulawesi Province using survey method with descriptive correlation analysis. The sample size is 41 groups with 205 respondents. Descriptive analysis shows the average index of the implementation of community dialogue and collective action of 56.05,50,88 and 65.72 from a maximum score of 100. The results indicated that perception of farmers on the observability of Cocoa Certification and the role of facilitators are significant related to dialogue and collective action of farmer groups. The dialogue in the group is significant correlated with their collective action. So, some farmer groups have potential to continue to adopt the Cocoa Certification standard but others have potential to quit.

Is kola Tree the Enemy of Cocoa? A Critical Analysis of Agroforestry Recommendations Made to Ivorian Cocoa Farmers

Cocoa production in Cote d’Ivoire (40% of the world market) has tripled in the past 35 years even as the country’s forests are depleted. The chocolate industry, concerned about production so concentrated in one country and its dependence on the forest, is trying to convince smallholders to obtain ‘cocoa certification.’ This scheme, while couched in environmental terms, aims to increase cocoa yields and recommends the removal of kola trees from cocoa plots. This advice, ultimately largely ignored by the cocoa farmers, reflects a lack of understanding of farmer practices and kola tree’s economic, social, and cultural role. The chocolate industry reveals its vision for agroforestry as limited to production and demonstrates an unwillingness to participate in the smallholder-driven innovation system that is transforming Ivorian cocoa cultivation.

Produce certification and income risk management strategies of cocoa farming households in South-West Nigeria

Agricultural produce certification is synonymous to farm assurance of which cocoa certification is an example; dealing with issues of Good Agricultural, Environmental and Social Practices (GAP, GEP and GSP) in cocoa production. Essentially, GAP, GEP and GSP packages had in-built mechanism that can aid farmers mitigate factors that could lead to farm income risks in cocoa production. Consequently, this study examined the influence of cocoa certification on income risks of cocoa farming households in South-west Nigeria. A multistage sampling technique was used to select 180 cocoa farming households from whose heads data were obtained with interview schedule in Southwest Nigeria. Data were analyzed with Chi-square Statistic, Income Risk Management Diversification Index (IRD) and Mann-Whitney-U Test Statistic. Chi-square analysis shows that (52.3%) certified cocoa farming households employed more risk management strategies than (94.2%) uncertified cocoa farming households (p<0.01). The Mann-Whitney-U test revealed a significant difference (p>0.05) between the income risk management practices of certified and uncertified cocoa farming households. Therefore, produce certification has been helping cocoa farming households in mitigating farm income risk in cocoa production through the employment of diverse (risk) management strategies. Hence, stakeholders should intensify efforts in encouraging farming households to embrace (cocoa) produce certification.

Willingness to Adopt Certifications and Sustainable Production Methods among Small-Scale Cocoa Farmers in the Ashanti Region of Ghana

The main objective of this research project was to identify current cocoa production practices and determine the principal factors that affect the adoption of sustainable farming practices and socio-environmental certifications among small-scale cocoa farmers in Ghana. The study was conducted in two cocoa districts (Atwima Mponua and Ahafoano North) in the Ashanti Region of Ghana. A combination of stratified, systematic and random sampling techniques was employed to select 439 cocoa producing households for the study. A standardized structured questionnaire was used to gather field data through personal interviews. Results showed that membership in farmers’ organizations, awareness of certification and size of cocoa farm were the main determinants of willingness to adopt sustainable cocoa production methods and certifications. Whereas membership in farmer-based organizations and awareness about different aspects related to certification had a significant positive effect on adoption of cocoa certification, farm size tended to have a significant negative effect on adoption of certification. Formation of cocoa farmers’ associations/organizations in various communities, creation of awareness about certification and continuous education of cocoa farmers are recommended to stimulate adoption of cocoa certification to achieve sustainability in the Ghanaian cocoa industry.