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The Economics of Chocolate$
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Mara P. Squicciarini and Johan Swinnen

Print publication date: 2016

Print ISBN-13: 9780198726449

Published to Oxford Scholarship Online: March 2016

DOI: 10.1093/acprof:oso/9780198726449.001.0001

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Sustaining Supplies in Smallholder-Dominated Value Chains

Sustaining Supplies in Smallholder-Dominated Value Chains

Corporate Governance of the Global Cocoa Sector

(p.195) 11 Sustaining Supplies in Smallholder-Dominated Value Chains
The Economics of Chocolate

Niels Fold

Jeff Neilson

Oxford University Press

Significant institutional transformations are occurring along the contemporary cocoa–chocolate value chain. Drawing on field research from Indonesia and Ghana, this chapter identifies the largely unprecedented emergence of enhanced corporate regulatory influence over the world’s cocoa farmers, framed by a discourse of ‘sustainability’ and the need to sustain supplies of cheap cocoa. These emergent institutional forms of governance weave together an amalgam of state-led regulatory and service delivery functions with the sourcing and brand management functions of lead firms. This presents both opportunities and significant risks for producer communities. Critically, corporate interests will not always align with the developmental interests of rural communities, and dependence on lead firms for technology development and social facilities exposes communities to specific risks should a new cocoa frontier emerge elsewhere and lead firms decide to shift their sourcing operations.

Keywords:   cocoa, Ghana, Indonesia, governance, rural development, sustainability, value chain

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