- Market Concentration and Price Formation in the Global Cocoa Value Chain.
- Number of pages
- Amsterdam: SEO Economisch Onderzoek
- Volume | Edition (Serie)
- Document type
- Faculty of Economics and Business (FEB)
- Amsterdam School of Economics Research Institute (ASE-RI)
This report explores to what extent market concentration in the cocoa value chain is responsible for the widespread poverty of cocoa farmers. The report finds that market concentration among chocolate manufacturers and cocoa
processors is not the key cause. Instead, there are two other key reasons why most cocoa farmers live in extreme poverty. The first is the fact that the productivity of cocoa farmers is very low, particularly in West Africa. The second
is that there are many cocoa farmers without realistic alternative income options. As a result, these farmers continue to supply cocoa even at very low prices. While raising productivity can help individual cocoa farmers to earn a better income, this cannot be a sustainable solution for all farmers, as this would result in an oversupply of cocoa and an even lower cocoa price. The best solution is to create conditions that would allow cocoa farmers to earn alternative income sources and become less dependent on cocoa.
- Final publisher version
Market (Embargo up to and including 15 November 2021)
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