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Global Markets, Farmers And The State: Sustaining Profits In The Indonesian Cocoa Sector

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  • Jeff Neilson

Abstract

The rapid expansion of cocoa farming among Sulawesi smallholders since 1980 has transformed the island into a hub within the global cocoa industry. It hosts a number of multinational trading firms and has an expanding grinding sector. In recent years, however, the cocoa sector has been struck by severe pest, disease and quality problems, which are undermining the long-term sustainability of one of Eastern Indonesia's most important rural industries. Some form of intervention is needed if the cocoa industry is to avoid steady decline. This paper examines the role of informal institutions, cocoa multinationals and government in attempts to maintain farm profits in Sulawesi.

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  • Jeff Neilson, 2007. "Global Markets, Farmers And The State: Sustaining Profits In The Indonesian Cocoa Sector," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 43(2), pages 227-250.
    • Handle: RePEc:taf:bindes:v:43:y:2007:i:2:p:227-250
    DOI: 10.1080/00074910701408073
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    References listed on IDEAS

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    1. Zahari Zen & Colin Barlow & Ria Gondowarsito, 2005. "Oil Palm in Indonesian Socio-Economic Improvement A Review of Options," Departmental Working Papers 2005-11, The Australian National University, Arndt-Corden Department of Economics.
    2. François Ruf & Frederic Lançon, 2004. "From Slash and Burn to Replanting : Green Revolutions in the Indonesian Uplands?," World Bank Publications - Books, The World Bank Group, number 15015, December.
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    Cited by:

    1. Tothmihaly, Andras & Ingram, Verina & von Cramon-Taubadel, Stephan, 2019. "How Can the Environmental Efficiency of Indonesian Cocoa Farms Be Increased?," Ecological Economics, Elsevier, vol. 158(C), pages 134-145.
    2. Salisu, Afees A. & Adediran, Idris A. & Oloko, Tirimisiyu O. & Ohemeng, William, 2020. "The heterogeneous behaviour of the inflation hedging property of cocoa," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).
    3. Syahruddin, Normansyah, 2011. "Towards traceability in cocoa - chocolate supply chain," MPRA Paper 31247, University Library of Munich, Germany.
    4. Hidayat, Muhammad & Echdar, Saban, 2017. "The Influence Of Farmer Entrepreneurship And Organizational Competence On Cacao Productivity," OSF Preprints z9ke8, Center for Open Science.
    5. Hidayat, Muhammad & Echdar, Saban, 2017. "The Influence Of Farmers' Entrepreneurship And Organizational Competence On Cacao Productivity," OSF Preprints q58nf, Center for Open Science.
    6. Neilson, Jeffrey & Dwiartama, Angga & Fold, Niels & Permadi, Dikdik, 2020. "Resource-based industrial policy in an era of global production networks: Strategic coupling in the Indonesian cocoa sector," World Development, Elsevier, vol. 135(C).
    7. Watts, John D. & Tacconi, Luca & Irawan, Silvia & Wijaya, Aklan H., 2019. "Village transfers for the environment: Lessons from community-based development programs and the village fund," Forest Policy and Economics, Elsevier, vol. 108(C), pages 1-1.
    8. Stephanie Barrientos, 2013. "Gender production networks: Sustaining cocoa-chocolate sourcing in Ghana and India," Global Development Institute Working Paper Series 18613, GDI, The University of Manchester.
    9. Atika Wijaya & Pieter Glasbergen & Pieter Leroy & Ari Darmastuti, 2018. "Governance challenges of cocoa partnership projects in Indonesia: seeking synergy in multi-stakeholder arrangements for sustainable agriculture," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 129-153, February.

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