GTAP Resources: Resource Display
| GTAP Resource #4365 |
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"RECONFIGURATION OF THE COCOA INDUSTRY AND POVERTY REDUCTION IN COTE D’IVOIRE" by Malan, Benoit Abstract The aim of this paper is to study the Ivorian cocoa supply chain to determine ways to improve the financial windfall share (generated by the cocoa industry), which returns to Cote d’Ivoire through local actors (farmers, cooperatives and local firms). To achieve this goal, we made a descriptive analysis and schematized the different stages of the supply chain, from the farm gate (in Cote d’Ivoire) to the sale of chocolate (in Western countries). We have identified the different actors in each successive levels of the chain, their activities and their economic weight (market share). This analysis allowed us to have a better understanding of all the Ivorian cocoa industry. It has shown us that actors located in consumer countries ensure the governance of this chain and also the share of the value accruing to Cote dIvoire is very low. Indeed, the cocoa producer gets only 4% of the retail price of chocolate. The study also shows that the best way to improve the share of Cote dIvoire in the financial windfall, generated by the cocoa industry, is to create more value for farmers and other local actors, and enable the achievement of successive stages of the value chain on the Ivorian domestic market. So instead of limiting ourselves to the activities of production and export of cocoa beans to grinders and/or chocolate manufacturers based in Europe and the United States, the manufacture and distribution of chocolate (or cocoa-based products) in the world should be performed from producer countries (Côte dIvoire in particular). This ambitious initiative will greatly reduce unemployment in the post-crisis period. It will also and above all improve the income of farmers and therefore poverty in rural areas. However, the reconfiguration of the cocoa industry will require, above all, to provide market opportunities for cocoa-based products from Cote d’Ivoire (and other producer countries). This can be achieved through well-crafted contracts between local actors and ret... |
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- Trade and the environment - Economic analysis of poverty - Economic development - Agricultural policies - Food prices and food security - Africa (West) |
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Last Modified: 9/15/2023 2:05:45 PM
