This report describes a collaboration between the NGO VECO, the leading global cocoa supplier Armajaro, and West Sulawesi farmers to develop direct market linkages and build on previous development work. The report briefly outlines the cocoa industry and the local cocoa chain and identifies key partners, their roles and activities. Testimonials from stakeholders provide comment on the process, benefits and challenges of the program.
To secure quality and quantity of agricultural products in the face of rising global demand, private companies are increasingly developing and nurturing long-term relationships with producers and their organizations. This case study describes how cocoa traders and manufacturers on the island of Flores are investing in producer organizations to ensure quality, sustainability and future supply, and ultimately their own survival. It provides a useful overview of the cocoa supply chain on Flores and then details how the efforts of P.T.
Despite numerous initiatives to address Indonesia's inconsistent and poor cocoa quality, adoption of improved production and post-harvest practices has been limited. This study examines the influence of value chain governance and quality based incentives. The report includes a brief overview of the Indonesian cocoa value chain from producers to international trading and the enabling market.
An export tax was introduced on Indonesian cocoa beans in 2010 to guarantee domestic supply for processing. This reduced cocoa bean exports by 51.4 per cent and increased processed cocoa exports by between 11.3 and 224 per cent. To assess the impact of this export tax on cocoa farmers and the supply chain, surveys were conducted with 60 farmers in South Sulawesi and various supply chain participants.
Traceability has become a major issue in cocoa supply chains due to the hazardous contaminants that can infect raw materials or processed products. In Indonesia, traceability in cocoa supply chains is still limited and faces several difficulties in implementation, including lack of technology and a limited legal framework to enforce it. This paper presents an overview of traceability in Indonesia and proposes a conceptual framework on how Indonesia could conduct traceability in cocoa supply chains.
This report details the development of a Flores cocoa farmer decision taking model using systems thinking, in particular systems dynamics and the creation of a management flight simulator. The model is based on understanding the key elements in cocoa farmer decision taking and who farmers listen to. Each chapter of the report represents a step in system dynamics methodology as the model is developed and tested. The systems decision taking model is used to simulate the potential impacts of proposed interventions for the Flores cocoa value chain.
Flores cocoa production is characterised by low productivity and poor quality. This report describes the use of a value chain approach to design interventions for the Flores cocoa industry as part of a training program for Swisscontact LED-NTT staff. The report details the cocoa value chain in Indonesia and globally as well as Flores cocoa production and the local value chain. The methodology involved interviews with value chain participants from producers to national processors and exporters to identify constraints and opportunities, and field visits to assess possible interventions.
This paper examines opposing land use strategies in cacao agroforestry in Sulawesi by using data on species richness of nine plant and animal taxa, six related ecosystem functions, and socioeconomic drivers of agroforestry expansion. Data was collected around Toro village in the Kulawi valley in four forest and 12 agroforestry plots. Findings reveal that transformation from near-primary forest to agroforestry had little effect on overall species richness, but reduced plant biomass and carbon storage by around 75 per cent and species richness of forest-using species by around 60 per cent.
This paper studied the relationship between tree age, nutrient dynamics and cocoa yield to determine which resources may limit cocoa yield. The study involved surveys of 14 cocoa agroforests in Central Sulawesi, including soil characterisation and analysis, and pod sampling for yield estimates, bean weight and carbon/nutrient analysis. Soil carbon nutrient levels did not change over the timeframes of 8 and 15 years and there was no relationship between soil carbon/nutrient levels and bean weight or carbon/nutrient levels.
In 2010, the Indonesian government introduced a 15 per cent export tax on cocoa beans to promote investments in downstream value-added activities. This paper examines the impact of this tax on domestic welfare and whether the government has imposed optimal taxes on cocoa beans. The research uses a partial equilibrium approach to analyse effects of policy by upstream sectors on downstream cocoa manufacturing. It also presents econometric estimates of import demand and export supply elasticity.