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Rainforest Alliance-UTZ cocoa certification scheme adoption: Determinants and financial implications for cocoa production in the Centre region of Cameroon

Author

Listed:
  • Boris D Soh Wenda
  • Hugues Nken
  • Hubert N T. Takam
  • Christian E Eloundou
  • Dorothy E Fon

Abstract

This study evaluates the level of adoption of the Rainforest Alliance-UTZ cocoa certification scheme in the Centre region of Cameroon, ascertains the drivers of adoption, and evaluates the financial implications of the levels of adoption. Using cross-sectional data obtained from 100 cocoa growers in the Central region of Cameroon and employing a Generalised Ordered Logit estimation technique alongside a one-way ANOVA test and Tukey’s test for post-hoc estimations, we show that 50%, 17%, and 33% of cocoa growers are complete adopters, partial adopters, and non-adopters of the Rainforest Alliance-UTZ cocoa certification scheme, respectively. The findings also reveal that the likelihood of having partial or complete adoption is higher among farmers who have introduced orange trees in their orchards, own more extensive orchards, and have more years of experience in cocoa farming. Furthermore, the likelihood of having complete adoption is higher for farmers with a lower planting density in their orchards and a tertiary level of schooling. Farmer’s age has a mitigated effect on the likelihood of adopting certification schemes by reducing the likelihood of having partial or complete adoption against non-adoption and at the same time raising the likelihood of complete adoption against no or partial adoption. The study also concludes that the financial performance of cocoa growers varies based on their level of adoption of the Rainforest Alliance-UTZ certification scheme. Farmers who have achieved certification status tend to have higher farm earnings. Based on these findings, non-adopters and partial adopters are encouraged to fully adhere to the Rainforest Alliance-UTZ certification standards. By doing so, they can increase their financial gains, enhance their livelihoods, and reduce the negative environmental impacts of cocoa farming.Author summary: For the past two decades, third-party sustainability certification has become the most widely used method to promote sustainability in the global cocoa-chocolate chain. The certification process requires cocoa growers to meet specific economic, social, and ecological standards, such as growing cocoa in agroforestry systems, establishing working contracts for farm workers, and prohibiting the use of underage workers. Unfortunately, less than one third of cocoa grown in Cameroon meets these certification standards. In our study, we introduce a novel technique where we categorize certification status as no adoption, partial adoption, or complete adoption. We show that farmers with a tertiary level of schooling, larger orchard size practicing cocoa agroforestry-based systems with mango (Mangifera indica), and oranges (Citrus sinensis) have higher levels of adoption of cocoa certification standards. Our research also demonstrates that complete adoption of cocoa certification standards leads to higher farm earnings and a higher benefit-cost ratio. Therefore, widespread adoption of certification standards can enable cocoa growers to raise their earnings while protecting the environment.

Suggested Citation

  • Boris D Soh Wenda & Hugues Nken & Hubert N T. Takam & Christian E Eloundou & Dorothy E Fon, 2024. "Rainforest Alliance-UTZ cocoa certification scheme adoption: Determinants and financial implications for cocoa production in the Centre region of Cameroon," PLOS Sustainability and Transformation, Public Library of Science, vol. 3(7), pages 1-19, July.
    • Handle: RePEc:plo:pstr00:0000115
    DOI: 10.1371/journal.pstr.0000115
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    References listed on IDEAS

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