Sustainability in the Cocoa Sector - Review, Challenges and Approaches

Abstract

The cocoa industry is suffering from a number of interconnected problems: Be this the over-aged tree stocks, the repercussions of disease and pest infestation, the political instability in West Africa, a lack of agricultural professionalism, an absence of infrastructure, or the shortcomings of the educational and financial systems in the cocoa-growing regions. A further problem is exploitative child labor on cocoa farms. Instead of continuing to wait for an international, legally-binding solution, numerous private and multi-stakeholder initiatives have been formed within the cocoa sector aimed at creating greater economic wealth and fairness, social justice in the producing countries, as well as social responsibility and ecological sustainability along the global value-added chain. To this end, sustainability standards are increasingly being applied in cocoa production. As demand for raw cocoa will continue to rise - training, improved production methods, rising productivity and promotion of diversification guarantee that cocoa of a consistently high quality and in quantities to meet market needs is offered by farmers in the future, thus also securing their long-term livelihoods.

Keywords: sustainability, food commodities, standards, certifications, global value chain

JEL Classification: F13, F16, F18, F53, F55, F59, L15, L32, O13, O19, P45, P48, Q11, Q17, Q28, Q56, L2, L5