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Pricing in the cocoa value chain – causes and effects

Art.-Nr.: 2018-13

Year of publication: 2018

Sustainability efforts in the cocoa sector are currently facing major challenges. Since September 2016, the cocoa price has fallen massively from just under USD 3,000 to around USD 1,900 per ton by the end of June 2017. This has direct impacts on the income situation of farmers.

The present study shows that there are concentration processes on the cocoa market among traders and processors of cocoa as well as in the food retail trade. The three largest companies alone, Barry Callebaut, Cargill and Olam International, have the capacity to process two-thirds of the world’s harvest. There is no adequate counterweight on the supply side of cocoa. The majority of the world’s estimated five million farmers are not organised, which severely weakens theirsituation in the value chain. In West Africa, where about 70 per cent of the global cocoa harvest comes from, only 30 per cent of farmers are estimated to be organised. Furthermore, there is a lack of national and international associations.  

(Friedel Hütz-Adams and others, 36 Pages)

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Pricing in the cocoa value chain – causes and effects

Art.-Nr.: 2018-13

Year of publication: 2018

Sustainability efforts in the cocoa sector are currently facing major challenges. Since September 2016, the cocoa price has fallen massively from just under USD 3,000 to around USD 1,900 per ton by the end of June 2017. This has direct impacts on the income situation of farmers.

The present study shows that there are concentration processes on the cocoa market among traders and processors of cocoa as well as in the food retail trade. The three largest companies alone, Barry Callebaut, Cargill and Olam International, have the capacity to process two-thirds of the world’s harvest. There is no adequate counterweight on the supply side of cocoa. The majority of the world’s estimated five million farmers are not organised, which severely weakens theirsituation in the value chain. In West Africa, where about 70 per cent of the global cocoa harvest comes from, only 30 per cent of farmers are estimated to be organised. Furthermore, there is a lack of national and international associations.  

(Friedel Hütz-Adams and others, 36 Pages)

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