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Practical publications

Alternative approaches to achieve a living income: A roadmap for flexible premiums, Huetz-Adams, Friedel , Alternative approaches to increase the income of cocoa farmers, April 2017, Bonn, (2017) , (Practical Publication)
Improving sustainability in cocoa and coffee, van Rijn, Fedes, and Ingram Verina , December 2016, Wageningen, (2016) , (Practical Publication)
CocoaAction Monitoring & Evaluation Guide, , 05/2016, (2016) , (Practical Publication)
Cocoa fact sheet, Wegner, Lucia , 04/2012, The Hague, p.12, (2012) , (Practical Publication)

Market Concentration and Price Formation in the Global Cocoa Value Chain’

TitleMarket Concentration and Price Formation in the Global Cocoa Value Chain’
Publication TypeReport
Year of Publication2017
AuthorsOomes, Nienke, and Tieben Bert
InstitutionSEO and KIT
CityAmsterdam
Publication LanguageEnglish
KeywordsCocoa, income, market concentration price formation, price
Lead

This report explores to what extent market concentration in the cocoa value chain is responsible for the widespread poverty of cocoa farmers. The report finds that market concentration among chocolate manufacturers and cocoa processors is not the key cause. Instead, there are two other key reasons why most cocoa farmers live in extreme poverty. The first is the fact that the productivity of cocoa farmers is very low, particularly in West Africa. The second is that there are many cocoa farmers without realistic alternative income options. As a result, these farmers continue to supply cocoa even at very low prices. While raising productivity can help individual cocoa farmers to earn a better income, this cannot be a sustainable solution for all farmers, as this would result in an oversupply of cocoa and an even lower cocoa price. The best solution is to create conditions that would allow cocoa farmers to earn alternative income sources and become less dependent on cocoa.

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