Indonesia cocoa bean value chain case study

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.

Impact of export tax policy on cocoa farmers and supply chain

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 in the cocoa supply chain: an Indonesian context

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.

Application of system dynamics in the international development cooperation: Analysis of decision taking among cocoa farmers in Flores, Indonesia

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.

Subsector analysis and design intervention: the case of Flores cocoa

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.

Value chain assessment: Indonesia cocoa

This report identifies the constraints and growth opportunities for the Indonesian cocoa value chain and proposes potential solutions to these constraints for future investment in cocoa. A desktop analysis provided information on both the global and Indonesia cocoa value chain. Interviews with key value chain participants informed the rest of the analysis, while focus groups were held to validate initial findings. The authors propose three key areas to address growth constraints: increasing productivity, improving quality and increased investments for local value addition.

Integrating smallholder cocoa farmers within quality-driven supply chains: learning from the PRIMA project

This report assesses the effectiveness of the PRIMA project in improving cocoa quality and the innovative approach used in establishing a quality driven supply chain with direct benefits to South Sulawesi smallholders. Interviews and questionnaires with a range of industry participants informed the report. The core component of the report details PRIMA project activities and how effective they were.

Global markets, farmers and the state: sustaining profits in the Indonesian cocoa sector

This paper discusses the institutional settings along the cocoa supply chain in Sulawesi. It explains how the Indonesian cocoa sector has seen rapid expansion under free-market conditions, followed by declining profitability due to pest infestations compounded by market imperfections. The complex needs of farmers in the face of pests and disease, sustainability concerns and quality decline are not being satisfied by informal mechanisms that facilitated earlier expansion. The author claims that the government has, for the most part, been a passive actor throughout these developments.

Linking farmers with markets: the case of cocoa.

Cocoa smallholders generally have limited contact with markets, leading to little awareness of product suitability, quality or choice of crop. This paper examines the characteristics of cocoa industries in Indonesia and Papua New Guinea, discusses key issues for improvement and sustainability of the industries, and describes research and development initiatives aimed at improving smallholder incomes. For Indonesia, the paper explores the Sulawesi cocoa industry.

A value chain assessment of the cocoa sector in Indonesia

The competitive advantage of Indonesian cocoa production has been threatened by poor and inconsistent quality. This report includes a desktop analysis to identify the key issues impacting on the cocoa value chain and details proposed interventions to benefit cocoa production, quality and smallholder income. Field visits were undertaken to identify the issues facing smallholders and potential collaborators for intervention.

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