Broken chocolate: biomarkers as a method for delivering cocoa supply chain visibility

Abstract

Purpose This paper examines the potential of “biomarkers” to provide immutable identification for food products (chocolate), providing traceability and visibility in the supply chain from retail product back to farm. Design/methodology/approach This research uses qualitative data collection, including fieldwork at cocoa farms and chocolate manufacturers in Ecuador and the Netherlands and semi-structured interviews with industry professionals to identify challenges and create a supply chain map from cocoa plant to retailer, validated by area experts. A library of biomarkers is created using DNA collected from fieldwork and the International Cocoa Quarantine Centre, holders of cocoa varieties from known locations around the world. Matching sample biomarkers with those in the library enables identification of origins of cocoa used in a product, even when it comes from multiple different sources and has been processed. Findings Supply chain mapping and interviews identify areas of the cocoa supply chain that lack the visibility required for management to guarantee sustainability and quality. A decoupling point, where smaller farms/traders’ goods are combined to create larger economic units, obscures product origins and limits visibility. These factors underpin a potential boundary condition to institutional theory in the industry’s fatalism to environmental and human abuses in the face of rising institutional pressures. Biomarkers reliably identify product origin, including specific farms and (fermentation) processing locations, providing visibility and facilitating control and trust when purchasing cocoa. Research limitations/implications The biomarker “meta-barcoding” of cocoa beans used in chocolate manufacturing accurately identifies the farm, production facility or cooperative, where a cocoa product came from. A controlled data set of biomarkers of registered locations is required for audit to link chocolate products to origin. Practical implications Where biomarkers can be produced from organic products, they offer a method for closing visibility gaps, enabling responsible sourcing. Labels (QR codes, barcodes, etc.) can be swapped and products tampered with, but biological markers reduce reliance on physical tags, diminishing the potential for fraud. Biomarkers identify product composition, pinpointing specific farm(s) of origin for cocoa in chocolate, allowing targeted audits of suppliers and identifying if cocoa of unknown origin is present. Labour and environmental abuses exist in many supply chains and enabling upstream visibility may help firms address these challenges. Social implications By describing a method for firms in cocoa supply chains to scientifically track their cocoa back to the farm level, the research shows that organizations can conduct social audits for child labour and environmental abuses at specific farms proven to be in their supply chains. This provides a method for delivering supply chain visibility (SCV) for firms serious about tackling such problems. Originality/value This paper provides one of the very first examples of biomarkers for agricultural SCV. An in-depth study of stakeholders from the cocoa and chocolate industry elucidates problematic areas in cocoa supply chains. Biomarkers provide a unique biological product identifier. Biomarkers can support efforts to address environmental and social sustainability issues such as child labour, modern slavery and deforestation by providing visibility into previously hidden areas of the supply chain.

Consumers’ valuation of blockchain-based food traceability: role of consumer ethnocentrism and communication via QR codes

“…In comparison, the absolute WTPs for the traceability QR code and PDO labels were nearly similar. However, besides providing only the locality and traditionality of the products, embedding traceability information in QR codes has more advantages than PDO labelling as it can help to convey more direct information to consumers such as information regarding antibiotic use (Bradford et al, 2022), free of child labour (Lafargue et al, 2022) and other sustainability claims (Bashir, 2022). Furthermore, consumers' awareness and knowledge of the certification schemes can be limited as proven in the case of PDO in several countries (Grunert and Aachmann, 2016).…”

The impact of Industry 4.0 technologies on the resilience of established cross- border supply chains

“…Industry 4.0 technologies have potential applicability in many areas, including commercial supply chains (Tönnissen and Teuteberg, 2020). IoT devices can provide high-quality data, tracking a container across a SC (Kamble et al, 2019) and improving SC visibility through continuous sensor data (Lafargue et al, 2022).…”

“…Real-time tracking technology can monitor details about the goods in the container: recording the country of origin, the weight of goods, the transit route, commodity codes, the value of goods, agent details, (Lafargue et al, 2022). IoT sensors within containers monitor onboard CO2 levels, temperature, humidity, and exposure to light (Bhutta and Ahmad, 2021).…”

Responsible sourcing for energy transitions: Discussing academic narratives of responsible sourcing through the lens of natural resources justice

“…the chocolate industry) explore unique biomarkers for the identification of products' origins. Related sustainability efforts and measures to reduce supply risks also target the management of deforestation, the elimination of child labor, and the mitigation of other socio-environmental problems (Lafargue et al, 2021). Luxury retail brands have the potential to drive innovation to improve the performance of production systems, products and ultimately environmental and social impacts in their supply chains.…”