Securing organic cocoa supply chains
How regulation and market turmoil are reshaping organic cocoa and other smallholder value chains
Conducted by FiBL and supported by SWISSCO (the Swiss Platform for Sustainable Cocoa), this study explored the added financial cost of the European Union Organic Regulation, and how that cost has affected Fairtrade and organic certified cocoa cooperatives.
The study included an online survey of 76 cocoa producer organisations in 11 countries, covering more than 52,00 organic cocoa farmers. Fifty-one of the organisations are also Fairtrade certified. Key findings include:
- Costs of organic certification and contols increased significantly: The total of internal and external costs ranged widely, with a median of €190/tonne.
- Fairtrade organic differential pricing and Fairtrade Premium supports cooperatives: The Fairtrade organic differential of US$ 450/tonne supports cooperatives to pay for costs while also passing incentive on to farmers directly. The Fairtrade Premium is used by 19 of 27 cooperatives to cover higher compliance costs.
- Most cooperatives intend to stay certified, but they should have supply chain support. The study also includes recommendations, including that the Fairtrade organic differential is a useful sector-wide benchmark, even for non-Fairtrade sales.
