Cocoa Markets and Value Chains: Implications For Sao Tome and Principe Organic Smallholders

Abstract

Cocoa is one of the main goods in the world agricultural trade markets, occupying the third position in exports. The paper introduces the cocoa value chain worldwide, its asymmetries, and the supply and value chain specific to the São Tomé and Principe (STP) organic cocoa. It aims to understand this value chain’s internal and external tensions and analyse its potential to be inserted in the international markets. The study uses panel data analysis from the FAOSTAT database. The tensions mentioned are due to the asymmetries of international markets and those regarding the production of organic cocoa in STP. At the level of STP and, despite measures to support organic production as a valuable alternative to the country’s development strategy, imbalances in the value chain persist that compromise the livelihoods of small producers responsible for most of production exported and the sustainability of the ecosystem.