Decommodifying cacao: matchmaking between producers and buyers of fine flavour cacao from Peru

Decommodification is promoted as a sustainability strategy in bulk commodity sectors such as cacao or coffee. Fine flavour cacao (FFC) may contribute to decommodifying the cacao sector. However, such decommodification may lead to new patterns of exclusion among smallholder producers, depending on how well they are able to meet more stringent quality requirements. This study assesses the extent to which producers of two of Peru's premier FFCs match the requirements of FFCs buyers. We interviewed 76 Peruvian and international FFC buyers and 337 cacao farmer households from 114 communities in the Peruvian departments of Cusco and Piura. We used ordination and cluster analysis to construct buyer and producer typologies, and developed a methodology to assess how well each producer type matches the requirements of each buyer type. While certain producers are well positioned to comply with the demands of specific buyers, wide gaps remain for producers to benefit from FFC, notably those related to quality aspects of cacao beans, but also ecological and socio-economic considerations, such as zero-deforestation and agroforestry-grown cacao, and enhanced participation of women in the value chain. If decommodification of cacao is to benefit vulnerable smallholder producers, institutions and trade relationships are needed that allow more producers to meet the more stringent requirements of a diversified, high-quality cacao sector.