Organic cacao chain for development: the case of the Talamanca Small-Farmers Association
Costa Rica and Panama both produce only small volumes of organic cacao. Some cocoa producers started production of organic banana. APPTA has to cope with market instability due to excess supply and with low local production due to biological threats. APPTA has to find a reliable buyer and either to increase the volume of cacao or to pool its production with the production realized by COCABO in Panama. This latter option will lead to a number of associated challenges such as harmonization of quality, organizing logistics, tracking and tracing, elaborating contracts between cooperatives etc. Developing new commercialization channels towards Europe reveals three options: APPTA sells beans directly to a Dutch buyer; APPTA sells beans to a Costa Rican processor who in turn exports semi-manufactured products to Dutch producers; or beans are processed by Costa Rican industry and APPTA commits to selling semimanufactured products to Dutch producers. Each of these three options has different repercussions on labelling, quality, environmental impact and profits. Additional options to improve livelihood of cacao farmers consist of diversification of the production at farm level and developing alternative sources of income, such as eco-tourism. The real challenge facing APPTA is to determine how to bring stakeholders with different interests and competencies together in an effective way to improve chain performance and to enhance farmers’ livelihoods.
Impact of a Marketing Cooperative on Cocoa Producers and Intermediaries: The Case of the Acopagro Cooperative in Peru
Membership in an agricultural cooperative can improve the efficiency of production. Cooperatives often transfer agricultural technology to their members by employing specialized extension agents. This study analyzes the effect of cooperative membership on cocoa production and identifies factors that influence the willingness of non-member farmers to join a cooperative in the future. A survey of 243 farmers was carried out between December 2009 and January 2010 in Juanjui, San Martin, which is the main cocoa production area in Peru and the home of the Acopagro cooperative. Econometric results show that non-member farmers usually harvest larger volumes of cocoa beans, but the quality of the beans is lower compared with the Acopagro cooperative members. Analysis of a subsample of Acopagro cooperative members confirms that the length of cooperative membership has a positive effect on cocoa production volume. Moreover, unassociated farmers who wish to continue selling independently in the market have different socio-economic characteristics compared with farmers who are willing to join the cooperative in the future. The cooperative should engage in adequate training of the cooperative extension agents, thus motivating them to provide knowledge to the farmers and improve the farmers’ competitive posture in the market.
Computer Simulation Modeling
Computer simulation as a research methodology is presented as the intersection of modeling, simulation, and computer analysis. Five component parts of simulation models are identified: input variables, output variables, assumptions, algorithms, and parameters. Computer simulation (CSM) has two primary uses for those interested in the study of organizations or who work within them: theory development and policy planning. The advantages and disadvantages of CSM for each of these purposes are examined and recent examples for each are explored.