Cocoa value chain: challenges facing Ghana in a changing global confectionary market

Barrientos, Stephanie; Asenso-Okyere, Kwadwo

doi:10.20446/jep-2414-3197-25-2-88

Cited by 15 publications

(18 citation statements)

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“…Countries that stood against the private governance trend are now benefiting from it, as exemplified by the state-run Ghana Cocoa Board (42). The importance of local supporting institutions for export-driven chains is also confirmed by the Peruvian and Mexican cases, which show that regulatory and legal institutions regarding land use and labor and environmental standards are critical for nurturing local capabilities.…”

Section: Resultsmentioning

confidence: 99%

Global value chains and agrifood standards: Challenges and possibilities for smallholders in developing countries

Lee

Gereffi²,

Beauvais³

2010

Proc. Natl. Acad. Sci. U.S.A.

379

280

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The rise of private food standards has brought forth an ongoing debate about whether they work as a barrier for smallholders and hinder poverty reduction in developing countries. This paper uses a global value chain approach to explain the relationship between value chain structure and agrifood safety and quality standards and to discuss the challenges and possibilities this entails for the upgrading of smallholders. It maps four potential value chain scenarios depending on the degree of concentration in the markets for agrifood supply (farmers and manufacturers) and demand (supermarkets and other food retailers) and discusses the impact of lead firms and key intermediaries on smallholders in different chain situations. Each scenario is illustrated with case examples. Theoretical and policy issues are discussed, along with proposals for future research in terms of industry structure, private governance, and sustainable value chains.food safety | agrifood supply chain | value chain governance T he proliferation of food standards, particularly private safety and quality standards, has brought forth an ongoing debate about whether they work as a barrier for smallholders in developing countries and hinder poverty reduction through agrifood exports (1, 2). Although evidence is mixed (3, 4), the existing literature generally suffers from its exclusive focus on the relationship between private standards and smallholders with little consideration of industry structure, which may affect both of them. This paper uses a global value chain (GVC) approach to bring industrial structure back in the discussion of food standards and smallholders. It proposes a framework to investigate how value chain structure affects small-scale producers through the food standards imposed on them. Different value chain structures generate a welter of food standards and potentially divergent outcomes in the well-being of smallholders. Specifically, the type of lead firm and the degree of market concentration in a given chain differentiate the chain actor's incentives and capacity for adopting and implementing enhanced standards. Value chain structure and food standards shape the conditions of smallholders involved in the chain, offering them different options as they face growing burdens in complying with higher requirements. Based on the proposed framework, four scenarios are mapped for smallholders in diverse chain governance situations, and each of them is illustrated with case examples. Theoretical and policy issues emerging from the cases are evaluated, along with proposals for future research. Smallholders, Food Standards, and GVCsThe GVC analysis of agrifood chains and their governance structure provides a conceptual framework to capture the diverse conditions of small-scale producers in the contemporary agrifood industry. It specifies the role and position of smallholders within the intersection of global and local agrifood value chains by mapping the geographic dispersion and organizational integration of these chains. It also highligh...

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Section: Resultsmentioning

confidence: 99%

Global value chains and agrifood standards: Challenges and possibilities for smallholders in developing countries

Lee

Gereffi²,

Beauvais³

2010

Proc. Natl. Acad. Sci. U.S.A.

379

280

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“…But rapid expansion is now occurring in emerging economies, with countries such as India and China experiencing annual growth rates nearer to eight to10 percent (albeit from a low base). The consumer market for chocolate has become distinguished by three segments: (a) low price and high volume; (b) mainstream quality; and (c) high quality niche chocolate (Barrientos and Asenso-Okyere, 2009). Overall, food safety standards pertain in all three segments.…”

Section: Changing Dynamics Of Cocoa-chocolate Sourcingmentioning

confidence: 99%

“…Expansion of production also took place in emerging countries (particularly in Asia), increasing global supply. Cocoa saw a secular decline in prices during the 1990s and 2000s, which has only recently reversed (Barrientos and Asenso-Okyere, 2009). However, the long term trend in real prices has seen a 2 percent annual decline between 1950 and 2010 (LMC 2011).…”

Section: Changing Dynamics Of Cocoa-chocolate Sourcingmentioning

confidence: 99%

Gender Production Networks: Sustaining Cocoa-Chocolate Sourcing in Ghana and India

Barrientos

2013

SSRN Journal

Self Cite

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Transformation of global sourcing over recent decades has significant implications for gender relations of production in the developing world. Analysis of global production networks and value chains (GPN/GVC) provides important insights into the changing dynamics of global sourcing and its embeddedness within diverse societies and countries. However, the gender dimension of this process is often overlooked. Feminist analysis provides important insights into a changing gender division of labour within global production, but rarely links it to the commercial dynamics of GPN/GVCs. This paper develops a gender production network analysis to inform a comparative examination of gender production relations in cocoa. It draws on case studies in Ghana and India. It asks in what ways are GPN/GVCs bearers of gender transformation, and what are the implications for the sustainability of quality cocoa sourcing by chocolate manufacturers? The paper finds that gendered social norms and practices in both countries mean that women's contribution to cocoa production has long been undervalued, with women largely relegated to the position of unpaid family or casual labour. However, within the gender division of labour women do play an important role in certain activities that are increasingly recognised in the industry as critical to ensuring good yields and quality production. These are of increasing importance to consumer-focused brand name chocolate companies. Recognition and support for women's role could make an important contribution, both to the empowerment of women cocoa farmers and workers, but also to the future sustainability of quality cocoa sourcing.

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“…COCOBOD, through the CMC, also has to make sure that contracting clauses and obligations are fulfilled and that farmers receive their share of the organic premium in the event that the organic cocoa is sold against a premium on the global market. As far as the export of cocoa is concerned, the CMC handles the sale of cocoa on the forward and spot markets, through the day-to-day sales of cocoa beans to traders and cocoa processors (Barrientos and Asenso-Okyere 2009). The trust that buyers have vested in COCOBOD allows it to sell cocoa in advance on the forward market, which provides better prices and greater security than other mechanisms (Barrientos and Asenso-Okyere 2009).…”

Section: Linking Production To Marketmentioning

confidence: 99%

“…As far as the export of cocoa is concerned, the CMC handles the sale of cocoa on the forward and spot markets, through the day-to-day sales of cocoa beans to traders and cocoa processors (Barrientos and Asenso-Okyere 2009). The trust that buyers have vested in COCOBOD allows it to sell cocoa in advance on the forward market, which provides better prices and greater security than other mechanisms (Barrientos and Asenso-Okyere 2009). In the case of organic cocoa, the export mechanism differs because promoting agencies often engage in commercial contacts or partnerships with interested organic companies and afterwards associate with the CMC/COCOBOD to lead the negotiation process, price setting, contract arrangements and follow-up.…”

Section: Linking Production To Marketmentioning

confidence: 99%

Governing the Organic Cocoa Network from Ghana: Towards Hybrid Governance Arrangements?

Glin

Oosterveer

Mol

2014

Journal of Agrarian Change

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Cocoa value chain: challenges facing Ghana in a changing global confectionary market

Cited by 15 publications

References 0 publications

Global value chains and agrifood standards: Challenges and possibilities for smallholders in developing countries

Global value chains and agrifood standards: Challenges and possibilities for smallholders in developing countries

Gender Production Networks: Sustaining Cocoa-Chocolate Sourcing in Ghana and India

Governing the Organic Cocoa Network from Ghana: Towards Hybrid Governance Arrangements?

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