Cocoa Supply Research Articles

Indonesia Cocoa Bean in International Trade

This study was conducted to determine whether the variable amount of production of cocoa beans, cocoa plantation area, the number of exports of cocoa beans, cocoa stock domestic, world cocoa prices, the exchange rate and overseas income influence the supply and demand of Indonesian cocoa beans. Through various variables descriptions above, such as the amount of production of cocoa beans, the number of exports of cocoa beans, cocoa stocks, world cocoa prices, foreign income, exchange rate or the exchange rate, this research focused on an econometric model of the Indonesian Cocoa Supply and Demand. the results of this study are on the supply function of Indonesian cocoa on the International market, with the independent variables are used (level of productivity of Indonesian cocoa plantations, the exchange rate, the price expectations of the world cocoa and cocoa previous year supply or lag 1) shows that the variation deals cocoa beans can be explained by a variable-variable in the model, amounting to 95.91 percent. Variable price expectations (PE), the productivity of Indonesian cocoa plantations (K), the number of supply cocoa beans (QS) has a positive relationship with the cocoa bean supply at present. While variable-rate (K) was negatively related.

ANALISIS DAN DESAIN RANTAI PASOK KAKAO BERBASIS BLOCKCHAIN

Abstract— The supply chain in the 4.0 era wanted consumers to be closer to producers. Problems that occur in the supply chain are supply chain information flow is still long, there is no transparency, marketing coverage is less extensive, and documentation of activities is not good. The purpose of this study is to analyze the condition of the Kelompok Tani X cocoa supply chain and to identify the attributes of the blockchain based group cocoa supply chain farmers. The method used is the System Development Life Cycle (SDLC) and Unified Modelling Languange. The results obtained are that the supply chain information flow in the X farmer group is still overlapping, and has not been systematic. Actors consist of farmers, farmer leaders, processing factories (Kelompok Tani X), and retailers. Activities that occur are signing up, logging in, filling content, transactions, shipping, validation, and returning goods. The conclusion is the supply chain activities of the Kelompok Tani X have not been documented. The blockchain system that is designed is adjusted to the situation, so it is expected to be able to make the administration and documentation system better. Keywords—: Agroindustry 4.0; supply chain; system development life cycle; transparency; unified modelling languange.

A sticky chocolate problem: Impression management and counter accounts in the shaping of corporate image

Demand for chocolate is at an all-time high. However, producing chocolate comes with some sticky social, environmental and economic problems. This paper focuses on the issues of child labour, forced child labour and unsustainable farming practice within the chocolate industry, and specifically on the discourse about Nestlé’s Ivory Coast cocoa supply chain. We analyse corporate disclosures, related counter accounts and subsequent responses in new and old media as a dynamic communication process. A mobilising of Goffman's (1959) dramaturgical metaphor of impression management contextualises each communication as a performance towards an audience. Behind the communications is Nestlé’s need to repair its legitimacy – because child labour and unsustainable farming exist in its cocoa supply chain – and the audience’s vested interests in their counter-performances. The Nestlé case offers substantive and nuanced insights into corporate disclosure and communication practices, how the Internet is changing the more unidirectional performances of the past, and how appreciation of counter accounts and subsequent responses to counter accounts contributes to theoretical understanding as well as provides insights into the plight of cocoa’s child labourers.

Analysis of Cocoa Supply Chain Risk in Kare Village, Madiun District with Method Analytic Network Process


 
 
 
 Cocoa is one of the plantation commodities whose role is quite important for the national economy of Indonesia. However, the cocoa industry faces several problems including the various risks involved in the cocoa supply chain. The aim of this study were: 1) Identifying risks in the cocoa supply chain 2) Analyzing the members of the supply chain with the highest risk 3) Evaluating and mitigating cocoa supply chain risks effectively and efficiently. An integrated analytic network process (ANP) and weighted failure mode effect analysis (WFMEA) method will be used to determine and analyze the highest risk in the cocoa supply chain. The results of the priority of the members of the value chain in the cocoa supply chain risk management are SMEs (0.43801), with the risk having the highest priority is production risk (0.29262) as well as alternative strategic priorities namely by increasing income (0.28754). The results of risk control are mainly focused on efforts to increase the income of cocoa farmers by utilizing cocoa processing byproducts such as cocoa bean pulp and cocoa pod husks. The cocoa bean pulp can be processed into nata products and cocoa juice, while the cocoa pod skin can be used as fertilizer.
 
 
 

Technology for Social Good Foundations: A Perspective From the Smallholder Farmer in Sustainable Supply Chains

The livelihood of smallholder farmers in emerging economies' cocoa supply chain is substandard because of fraud, exploitation, corruption, deceit, child labor, and financial exclusion, usually perpetrated by influential actors. This situation creates a social sustainability problem which needs urgent attention. Digital technologies such as sensors, drones, satellites, and blockchain show promise toward fostering social sustainability deep into the supply chain. This innovation is consistent with the United Nations 2030 sustainable development goals of transforming world economies toward a more sustainable future vision by reducing poverty and inequality. As our contribution, we adopt a traditional approach in our perspective article to initiate a scholarly curiosity to discuss and develop research needs on how to use technology to address this current and critical sustainability and supply chain concern. Blockchain can solve the inefficiencies, complexities, and other social issues of smallholder farmers in the supply chain. This article identifies some blockchain technologies in emerging economies, such as Hara Technology in Indonesia and Cellulant Agrikore Blockchain Solution in Nigeria. Again, we observed that the promise of using technology to improve smallholders' vulnerability in the cocoa supply chain remains underexploited in Africa and other emerging economies. Therefore, rigorous research on smallholders' social sustainability is needed to make sound policy recommendations. This short perspective article describes issues facing these smallholder farmers and how technology can play a role for them and their supply chains to alleviate various social and environmental concerns. Accordingly, we propose some research questions for technology, innovation, and engineering management researchers.

Strategic Management of Cocoa Marketing in The Plea Puli Multipurpose Cooperative in East Nusa Tenggara

Cacao plays an important role in the Indonesian economy. One of the business entities engaged in cocoa commodity business activities is the Plea Puli Multipurpose Cooperative (KSU). The low number of cocoa purchases at the KSU Plea Puli is caused by various factors. One of them is competition with other cocoa buyers. Related to efforts to increase cocoa marketing, it is necessary to first know about the cocoa supply chain to the KSU Plea Puli. The purpose of this study is to analyze the cocoa supply chain to the KSU Plea Puli and strategies that can be implemented in increasing cocoa marketing. The study was conducted at KSU Plea Puli in East Nusa Tenggara. The main research instrument is a questionnaire. The determination of respondents to determine the cocoa supply chain to the KSU Plea Puli was conducted on member farmers using the Slovin formula and non-member farmers using quota sampling techniques. The number of respondents in this study were 60 people. The determination of informants to find out the cocoa supply chain to the KSU Plea Puli and the informants determining internal and external strategic factors was done purposively. The results showed that in the cocoa supply chain to the KSU Plea Puli, there were three types of flows managed, namely material, financial and information flows. The parties involved consisted of member farmers and not members and the KSU Plea Puli themselves. In addition, there are various activities carried out such as cocoa production and marketing by farmers and cocoa marketing operations by KSU Plea Puli. The results also show that 12 alternative strategies are possible to support efforts to increase cocoa marketing by increasing the number of purchases. Strategy priority based on the highest-ranking with a score of 5.75 that is giving special authority to managers to carry out cocoa marketing operations. The management is expected to be able to implement the results of the strategic management of cocoa marketing in the KSU Plea Puli with the priority of the strategy being to give special authority to the manager to carry out cocoa marketing operations. The existence of the Commodity Product Processing and Marketing Unit (UPPH) at the KSU Plea Puli needs to be maintained and developed. Farmers are expected to adopt good agricultural practices by implementing PsPSP which consists of frequent harvesting, pruning, sanitation, fertilization and soil, and plant health and pest and disease control. In addition, farmers are also encouraged to always maintain the quality of cocoa beans.
 Keywords: strategic management, supply chain, cocoa

Applying one health methods to improve cocoa production in Bougainville: A case study

Cocoa production is the major contributor to livelihoods for farming families that constitute nearly two-thirds of the population of the Autonomous Region of Bougainville, a Province in Papua New Guinea (PNG). These families, living mostly in subsistence poverty as a result of the Bougainville Civil War (1988–98), have significantly reduced cocoa production. Efforts to rebuild the industry have not been realised, due to known agricultural factors such as labour shortages, pests and diseases, poor support for farmers from trained agricultural extension officers and inefficient cocoa supply chains. But cocoa production involves factors other than agricultural ones. This article describes how we applied One Health methods to design and undertake a 6-year research project in Bougainville to improve cocoa productivity. Maximising the health and wellbeing of farming families and increasing agricultural productivity we argue, requires an in-depth understanding of the non-linear interactions between health, labour, household decision-making, yields and incomes.

Business processes and information systems in the Ghana cocoa supply chain: A survey study

The Ghana cocoa industry contributes substantially to the total world cocoa production and provides livelihoods to more than a quarter of the population. Although cocoa holds a leading position in the Ghanaian economy, no explicit effort has been made in modelling and documenting the business processes of the cocoa supply chain and the role that IT plays in supporting those processes. Hence, it is difficult to identify the current obstacles in adopting IT in the Ghana cocoa sector, and likewise, enhance the alignment of the business processes along the supply chain and the underlying IT systems. To address this issue, this article presents the results of a survey study to the current business processes of the cocoa supply chain and the underlying IT systems in Ghana. The survey study has been conducted with 56 individuals from the three key sets of actors from the sector, which are cocoa farmers, cocoa traders and the Ghana cocoa board. Based on the results of the survey study, we provide formal business process models of these actors and describe the role IT currently plays in supporting the business processes. We report on the lessons learned together with the obstacles and thus aim to pave the way for further development and enhancement of the business processes as well as the adopted IT.

ANALYSIS OF COCOA SUPPLY RESPONSE IN INDONESIA

Cocoa is one of the plants used as raw material for making chocolate, where chocolate is currently popular in the world and in Indonesia. This makes cocoa consumption continue to increase. Increased cocoa consumption must be balanced with an increase in cocoa production. However, it turns out that cocoa production in Indonesia in the last five years has decreased, in addition to the condition of cocoa plantations in Indonesia that have the potential to increase. This study aims to analyze the factors that affect the supply of cocoa in Indonesia based on the number of cocoa plants produced, to analyze the factors that affect the supply of cocoa in Indonesia based on the level of cocoa crop productivity, and to estimate the elasticity of cocoa supply in the short term and long term in Indonesia. The method used in this study is co-integration test and Error Correction Model. based on the results of the analysis, it is known that the factors that influence the cocoa supply response based on the number of plants, namely the price of cocoa beans in the previous three years, interest rates in the previous three years, the number of cocoa plants produced in the previous year Influential in positive and CPO prices in three the previous year Influential in negative. Meanwhile, the factors that influence the supply of cocoa based on the level of crop productivity, namely the price of cocoa beans in the current year Influential in positive and the price of urea fertilizer in the current year Influential in negative. The short-term elasticity of cocoa supply is 0.189 and the long run is 0.347, where both are not elastic. Increased supply response can be done by government intervention to provide input subsidies to farmers and maintain maintenance on plantations so that production is high.

ANALISIS DAN DESAIN RANTAI PASOK KAKAO BERBASIS BLOCKCHAIN

The supply chain in the 4.0 era wanted consumers to be closer to producers. Problems that occur in the supply chain are supply chain information flow is still long, there is no transparency, marketing coverage is less extensive, and documentation of activities is not good. The purpose of this study is to analyze the condition of the Kelompok Tani X cocoa supply chain and to identify the attributes of the blockchain based group cocoa supply chain farmers. The method used is the System Development Life Cycle (SDLC). The results obtained are that the supply chain information flow in the X farmer group is still overlapping, and has not been systematic. Actors consist of farmers, farmer leaders, processing factories (Kelompok Tani X), and retailers. Activities that occur are signing up, logging in, filling content, transactions, shipping, validation, and returning goods.

A design of competitive cocoa agro-industry supply chain system in Putat village, Gunung Kidul district

Inconsistency quality and availability of cocoa beans become a serious problem for cocoa agro-industry. In general, we can not trace whose cacao beans are processed in the industry. This is due to the lack of integrated supply chain consisting of farmer, collector, trader, exporter and industry. This study aimed to produce a design of competitive cocoa agro-industry supply chain system with dynamic system approach. Integrated partnership between Sidodadi farmer’s group in Putat village, Patuk subdistrict, Gunung Kidul district with TTP Nglanggeran, Cokelat nDalem and local collector give a competitive value for cocoa agro-industry supply chain. Through this, fermented beans directly distributed to industry and processed. Cocoa supply in scenario increase 2.61% from existing, decreasing the balance of cocoa beans supply demand up to 0.7%, raising the first level of cocoa beans quality up by 2022, and lifting the accumulation of Farmers group’s profit up to 29.31%. The design of this system is expected to inform cacao stakeholders about the importance of partnerships to improve cocoa agro-industry competitiveness.

Requirement analysis of blockchain systems on cocoa supply chain

The long cocoa supply chain in Indonesia makes cocoa difficult to trace, data in several countries in Indonesia related to national cocoa data. National cocoa production data is needed in creating policies that are right on target, so these things need to be done. The development of industry 4.0 makes the creation of blockchain technology that can overcome these problems. To create a blockchain system for the cocoa supply chain needs a requirement analysis for the time of making the application. The purpose of this research is to identify the needs and know the interactions that occur in the blockchain chain system in the cocoa supply chain. The method used is requirement analysis, use case diagram, and sequence diagram. The results of this study are two inputs: the structure of the cocoa supply chain and activities that occur in the cocoa supply chain, four stakeholders: farmers, collectors, agroindustry, and exporters, one output: the blockchain system from the cocoa supply chain. Interactions that occur in the system is log in to the system, add the activity, execution phase, ordering phase, and validation phase.

On the logistics of cocoa supply chain in Côte d’Ivoire: Simulation-based analysis

Côte d’Ivoire produces about 42 percent of the world’s total Cocoa but processes only 30 percent of the total production. A large part of the country depends on the commercial benefits of the Cocoa production and supply chain of it. In this paper, we develop a simulation model that assess the performance of the logistics of the Cocoa supply chain in Côte d’Ivoire. The simulation model shed light on the potential of improvements in the logistics of the Cocoa supply chain by identifying inefficiencies, bottlenecks, and blockers that hinder the productivity and performance of the Cocoa supply chain. Results from simulations show that reduction of checkpoints along the roads will increase productivity by 30 percent, while the value of beans in the Port will increase 3 percent and of butter 5 percent. Investing in improving secondary and tertiary roads will increase the productivity by 9 percent and value by 1 percent while investing in improving road infrastructure and checkpoints will raise the productivity by 27 percent and the value by 3 percent. The results suggest that a combination of reducing the checkpoints with the investment in secondary and tertiary roads will increase productivity while at the same time the pollution will be reduced importantly. The results also suggest that the switching from only producing beans to butter should be accompanied with the increase in productivity otherwise the value at the market would not be sensitive. Other important results are also presented in this paper, together with suggestions for improvement in order to optimize the logistics of Cocoa supply chain, and increase the profitability of the Cocoa sector, and hence the living conditions and wellbeing of the farmers in the country.

Gender and Forced Labour: Understanding the Links in Global Cocoa Supply Chains

This paper investigates the gendered patterns and dynamics of labour exploitation and forced labour in the cocoa supply chain. The empirical basis of our analysis is an original primary dataset produced through the Global Business of Forced Labour project, which includes data gathered in Ghana in 2016–2017, comprising 60 in-depth interviews and a survey of 497 cocoa workers across 74 cocoa communities from Ghana’s two largest cocoa-producing regions, the Western and Ashanti Regions. Drawing on this dataset, we show that prevailing business models within the Ghanaian cocoa industry rely on and reinforce labour exploitation and unequal gender power relations. Given that the links between forced labour and gender remain poorly understood, we analyse the factors that render women workers disproportionately vulnerable to severe labour exploitation, underscoring the role of unequal family relations, responsibility for reproductive labour, and social property relations in creating vulnerability to exploitation.

Governance of zero deforestation cocoa in West Africa: New forms of public–private interaction

AbstractIn March 2017, twelve of the world's leading cocoa and chocolate companies made a collective commitment to end the deforestation associated with the global cocoa supply chain. This marks one of the latest forms of transnational business governance, whereby state actors share the regulation of environmental and social externalities with private authority. This paper responds to the call for more contextual research into the complex policy ecosystems in which zero deforestation commitments are implemented and how transnational private authority is interacting with, and possibly being reconfigured by, domestic governance and territory. Combining policy analysis, field work on cocoa farms, focus groups, and over 45 interviews, this paper provides empirical evidence to explain how business commitments to zero deforestation cocoa interact with domestic political processes to reduce deforestation in key cocoa‐producing countries. The focus is on three top cocoa producer countries in West Africa, where smallholder cocoa farming causes environmental degradation due to deforestation, and socioeconomic progress for smallholders is difficult to achieve. In these countries, the private sector's commitment to reduce deforestation is situated in government‐led programs to reduce emissions from deforestation and forest degradation. The findings show that a codependent relationship is evolving between corporate and state‐led efforts to reduce deforestation, where the success of zero deforestation cocoa relies on synergistic public–private interaction. Cocoa intensification without expansion, supply chain traceability, and jurisdictional commodity sourcing are the three main areas of future collaboration identified.

A system design for cocoa beans transportation of premium products

Premium chocolate product such as praline, chocolate bars, confectionery, and chocolate drink need a premium quality of cocoa beans. Scarcity of sources and less quality in the existing cocoa beans supply chain affecting a sustainable production and increase operational cost. Improvement in cocoa supply chain which is consisting of farmers-farmers group- transporter/logistic provider- agro industry will provide cocoa beans availability and optimum operational cost of premium product-agro industry. Transportation sector which support supply chain has an important role for ensuring the distribution of cocoa beans delivery in time. The source availability and transportation mode are the requirements that analyzed in Business Process Modelling (BPMN) to minimize transportation cost and maximize quantity of cocoa bean demand. The formulation of those will be optimized by Goal Programming. The results is deviation of transportation cost 2,083 rupiahs per kilogram when supply meets the agro industry demand and there is no deviation of transportation unit when using six unit of truck. It’s reveal that the availability of cocoa bean to meet agro industry demand will give cost efficiency.

Modelling the Impact of Travel Time Uncertainty to the Cocoa Supply Chain Network

The uncertainty issue becoming more and more important in term of freight transport, which essentially affect the transport cost. As an essential parameter to construct the product price, the transport cost variations sequentially impact the supply chain network structures. This paper then presents the multi-channelled supply chain network equilibrium (SCNE) model with the behaviour of freight carriers by considering variation of travel time. The cocoa SCNE model is then invoked to represent the trading chain of cocoa. As different with the previous researches, the model takes into account the variation of traffic flow and the road capacity to the freight cycle time, which is practically used for estimating the transport cost. The variation is propagated based on the Monte Carlo simulation approach. Finally, the model is applied to an actual cocoa SCN in Sulawesi for investigating the impact of travel time variation to the price of cocoa.AbstrakKetidakpastian di dalam jaringan transportasi menjadi isu yang semakin penting di dalam dunia angkutan barang, yang secara subtantif dapat mempengaruhi komponen biaya transportasi. Sebagai parameter penting untuk membangun harga produk, variasi biaya transportasi berperan dalam mempengaruhi struktur jaringan rantai pasokan. Makalah ini kemudian mendiskusikan model supply chain network equilibrium (SCNE) dengan perilaku angkutan barang dengan mempertimbangkan variasi waktu tempuh. Cocoa SCNE model kemudian digunakan untuk mewakili rantai pasok komoditas kakao. Berbeda dengan penelitian sebelumnya, makalah ini memperhitungkan variasi arus lalu lintas dan kapasitas jalan terhadap waktu siklus pengiriman, yang secara praktis digunakan untuk memperkirakan biaya transportasi. Variasi tersebut dibangun dengan mendasarkan kepada pendekatan simulasi Monte Carlo. Akhirnya, model ini diterapkan pada jaringan rantai pasok kakao di Sulawesi untuk menyelidiki dampak variasi waktu tempuh terhadap harga kakao.

Modelling a Cocoa Supply Chain: Specific Problems and Their Countermeasures

In recent years, there has been a steady decline in the quality of the cocoa beans that is imported to the Northern Hemisphere from various parts of the world. With increasing world consumption and demand for chocolate and chocolate products and given declining production, it is very important to assess the supply chain of the cocoa beans to identify the areas wherein most problems lie and investigate some of the methods or steps that can help resolve these problems. Some factors in the cocoa supply chain, clearly, are at more risk of disruption than the others. The aim of the paper is to individually look at the most important steps or processes of the long supply chain of cocoa individually and try to look at some of the ways which might improve those steps in the supply chain. Since around 71 percent of the cocoa is produced by the West African countries, the focus of the paper will be on the cocoa produced by that region.

From site-level to regional adaptation planning for tropical commodities: cocoa in West Africa

The production of tropical agricultural commodities, such as cocoa (Theobroma cacao) and coffee (Coffea spp.), the countries and communities engaged in it, and the industries dependent on these commodities, are vulnerable to climate change. This is especially so where a large percentage of the global supply is grown in a single geographical region. Fortunately, there is often considerable spatial heterogeneity in the vulnerability to climate change within affected regions, implying that local production losses could be compensated through intensification and expansion of production elsewhere. However, this requires that site-level actions are integrated into a regional approach to climate change adaptation. We discuss here such a regional approach for cocoa in West Africa, where 70 % of global cocoa supply originates. On the basis of a statistical model of relative climatic suitability calibrated on West African cocoa farming areas and average climate projections for the 2030s and 2050s of, respectively, 15 and 19 Global Circulation Models, we divide the region into three adaptation zones: (i) a little affected zone permitting intensification and/or expansion of cocoa farming; (ii) a moderately affected zone requiring diversification and agronomic adjustments of farming practices; and (iii) a severely affected zone with need for progressive crop change. We argue that for tropical agricultural commodities, larger-scale adaptation planning that attempts to balance production trends across countries and regions could help reduce negative impacts of climate change on regional economies and global commodity supplies, despite the institutional challenges that this integration may pose.

Commodity production as restoration driver in the Brazilian Amazon? Pasture re-agro-forestation with cocoa (Theobroma cacao) in southern Pará.

The increasing demand for agricultural commodities is a major cause of tropical deforestation. However, pressure is increasing for greater sustainability of commodity value chains. This includes the demand to establish new crop plantations and pasture areas on already deforested land so that new forest clearing for agriculture is minimized. Where tree crops are planted as part of agroforestry systems on deforested land, this amounts to a form of re-agro-forestation which can generate environmental benefits in addition to crop production. Here, we discuss a case where agroforestry systems based on cocoa (Theobroma cacao) are being established on crop and pasture land in the south of Pará state, Brazilian Amazon. The adoption of cocoa by farmers and ranchers of the region is stimulated by the coincidence of (1) favorable prospects for cocoa on the national and international markets including the expectation of a global cocoa supply gap; (2) environmental policies obliging land owners to reforest excess cleared land with native trees, with agroforests based on the native cocoa tree being an economically attractive option; and (3) biophysical conditions (especially soil fertility) favorable for growing cocoa in part of the region. We show that in the state of Pará at least 1.26 million hectares of naturally high-fertility soils in deforested areas outside legally protected and indigenous lands are potentially suitable for cocoa production with low agrochemical inputs, sufficient to make a significant contribution to closing the predicted supply gap. Their actual suitability depends on their state of degradation after years of pasture use and the availability of technologies and finance to convert them into tree crop agroforests. We discuss the significant environmental benefits of pasture re-agro-forestation with cocoa-based systems, including reduced emissions of up to 135 Mg of carbon per hectare compared to the historically common scenario of planting cocoa after forest clearing. We identify important research questions related to the scaling up of this practice and the maximization of its environmental benefits. We conclude that the coincidence of the afore-mentioned factors could drive a re-agro-forestation frontier in this part of the Amazon, with potential for positive outcomes in terms of commodity production while generating social and environmental benefits.