Need Analysis of the sustainability of small fair trade cocoa producer cooperatives in Madagascar

Title Need Analysis of the sustainability of small fair trade cocoa producer cooperatives in Madagascar

Location  Sambirano Valley– Ambanja, Madagascar

Duration October 2024

Funding Altromercato

 

Context

Although internationally recognised for the “grand cru effect” of its Criollo and Trinitario varieties, Madagascar’s cocoa sector remains a niche market: the country is the world’s 22nd largest exporter and has around 30,000 active farmers, 95% of whom are concentrated in the Sambirano Valley, where the fertile soil and microclimate are ideal for organic farming. However, the lack of a structured domestic market, the fragmentation of technical and training services, and recent fluctuations in international prices (from 4,000 to 12,000 USD/t in a few months) expose small producers to economic and organisational risks.

 

General Objective

The Circular Innovation & Sustainable Commodities Unit has been involved in gathering and analysing the economic, social and environmental needs of the members of the Producteur Cacao du Sambirano Cooperative (Co.Pro.CA.SA.) – certified organic and Fair Trade – in order to formulate project proposals aimed at strengthening its sustainability and competitiveness on international markets.

 

Our contribution

In the first week of October 2024, the research team travelled to Ambanja and the surrounding villages to give a voice to small producers and local stakeholders. Initially, ARCO’s Researchers conducted semi-structured interviews with Co.Pro.CA.SA. managers and representatives of key institutions to map the functioning of the cocoa supply chain, supply relationships and the main service gaps. Each meeting provided an opportunity to explore the issues of cooperative governance, bank guarantees and the difficulties in complying with certifications.

To understand the real needs in the area, the research team organised focus groups with small cocoa producers in the villages where the cooperative members’ plantations are located. In these meetings, cocoa farmers shared traditional agricultural practices, logistical challenges (distances of up to 75 km from the storage warehouse) and expectations for technical and training support.

Finally, visits to individual producers made it possible to observe fermentation and drying techniques first-hand and assess the condition of the infrastructure and equipment available.

This combination of qualitative and quantitative tools provided a deeper understanding of the challenges and opportunities and laid the foundations for formulating realistic project proposals rooted in the needs and aspirations of the beneficiaries themselves.

Read more on the Circular Innovation &Sustainable Commodities Unit