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. The authors use an approach proposed by Schwägele (2005), which divides traceability into two parts: tracking and tracing. Tracking focuses on following the movement of goods downstream as far as the consumer. The authors propose that growers track the transmission of prices along the supply chain to measure the economic performance of the chain. Tracing involves the flow and openness of information, which (once determined) can be a useful tool to monitor sustainability performances. The authors conclude that implementing traceability in the cocoa supply chain is not likely to present a financial burden since it is estimated to cost only three per cent of the retail chocolate price.
Download reference document (PDF 246.02 KB)
Commodity:
Publication Date:
2012
Author:
Syahruddin N. and Kalchschmidt M.
Publisher:
In '23rd Annual Conference of the Production and Operations Management Society, Chicago, Illinois, USA, 20-23 April 2012'
Keywords: