IDEAS home Printed from https://ideas.repec.org/a/plo/pstr00/0000115.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: https://journals.plos.org/sustainabilitytransformation/article?id=10.1371/journal.pstr.0000115
    Download Restriction: no
    File URL: https://journals.plos.org/sustainabilitytransformation/article/file?id=10.1371/journal.pstr.0000115&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pstr.0000115?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Raluca Dragusanu & Daniele Giovannucci & Nathan Nunn, 2014. "The Economics of Fair Trade," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 217-236, Summer.
    2. Giacomo Zanello & Xiaolan Fu & Pierre Mohnen & Marc Ventresca, 2016. "The Creation And Diffusion Of Innovation In Developing Countries: A Systematic Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 30(5), pages 884-912, December.
    3. Long Yang & Haiyang Lu & Meng Li, 2023. "Multidimensional Inequality and Subjective Well-Being in China: A Generalized Ordered Logit Model Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(3), pages 1021-1052, February.
    4. Richard Williams, 2006. "Generalized ordered logit/partial proportional odds models for ordinal dependent variables," Stata Journal, StataCorp LLC, vol. 6(1), pages 58-82, March.
    5. Jaza Folefack, Achille Jean & Darr, Dietrich, 2021. "Promoting cocoa agroforestry under conditions of separated ownership of land and trees: Strengthening customary tenure institutions in Cameroon," Land Use Policy, Elsevier, vol. 108(C).
    6. Ngougheme, Rene & Kamdem, Cyrille Bergaly & Jagoret, Patrick & Havard, Michel, 2016. "Impact de la certification sur les performances agro-economiques des producteurs de cacao du centre Cameroun," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249294, African Association of Agricultural Economists (AAAE).
    7. James Sumberg, 2016. "Opinion: the effects of technology adoption on food security: linking methods, concepts and data," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(6), pages 1037-1038, December.
    8. Ollendorf, Franziska & Sieber, Stefan & Löhr, Katharina, 2023. "Societal dynamics of sustainability certification in Ghanaian cocoa producing communities: Assessing social cohesion effects and their implications for collective action," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(2), pages 212-238.
    9. Brown, Brendan & Nuberg, Ian & Llewellyn, Rick, 2017. "Stepwise frameworks for understanding the utilisation of conservation agriculture in Africa," Agricultural Systems, Elsevier, vol. 153(C), pages 11-22.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Longang, Saubaber Gamo & D., Soh Wenda Boris. & Bergaly, Kamdem Cyrile, 2023. "Adoption of Cocoa Certification Scheme and Farmer’s Technical Efficiency in Cameroon: A Double Bootstrap Procedure," AfricArxiv 2r7qa, Center for Open Science.
    2. Mengyuan Zhou, 2022. "Does the Source of Inheritance Matter in Bequest Attitudes? Evidence from Japan," Journal of Family and Economic Issues, Springer, vol. 43(4), pages 867-887, December.
    3. Yuri Reina-Aranza, 2015. "Violencia de pareja y estado de salud de la mujer en Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 13964, Banco de la República, Economía Regional.
    4. Cristina Chaminade & Monica Plechero, 2015. "Do Regions Make a Difference? Regional Innovation Systems and Global Innovation Networks in the ICT Industry," European Planning Studies, Taylor & Francis Journals, vol. 23(2), pages 215-237, February.
    5. Bruno Amable, 2009. "The Differentiation of Social Demands in Europe. The Social Basis of the European Models of Capitalism," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 91(3), pages 391-426, May.
    6. Thomas Pircher & Conny J. M. Almekinders, 2021. "Making sense of farmers’ demand for seed of root, tuber and banana crops: a systematic review of methods," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(5), pages 1285-1301, October.
    7. Giuseppina Guagnano & Elisabetta Santarelli & Isabella Santini, 2016. "Can Social Capital Affect Subjective Poverty in Europe? An Empirical Analysis Based on a Generalized Ordered Logit Model," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 881-907, September.
    8. Sara A. L. Smaal & Joost Dessein & Barend J. Wind & Elke Rogge, 2021. "Social justice-oriented narratives in European urban food strategies: Bringing forward redistribution, recognition and representation," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(3), pages 709-727, September.
    9. Hanna Dudek & Joanna Landmesser, 2012. "Income satisfaction and relative deprivation," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 13(2), pages 321-334, June.
    10. Yahui Wang, 2019. "What Affects Participation in the Farmland Rental Market in Rural China? Evidence from CHARLS," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    11. Joachim Wagner, 2009. "Exporte und Firmenerfolg: Welche Firmen profitieren wie vom internationalen Handel?," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 3(2), pages 109-122, October.
    12. Charlie Tchinda & Marcus Dejardin, 2021. "Are Business Policy Measures in Response to the COVID-19 Pandemic to Be Equally Valued? An Exploration According to SMEs Owners’ Business Expectations," Sustainability, MDPI, vol. 13(21), pages 1-42, October.
    13. Woo, C.K. & Zarnikau, J. & Moore, J. & Horowitz, I., 2011. "Wind generation and zonal-market price divergence: Evidence from Texas," Energy Policy, Elsevier, vol. 39(7), pages 3928-3938, July.
    14. Wixe, Sofia & Nilsson, Pia & Naldi, Lucia & Westlund, Hans, 2017. "Disentangling Innovation in Small Food Firms: The role of External Knowledge, Support, and Collaboration," Working Paper Series in Economics and Institutions of Innovation 446, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    15. Sofia Wixe & Pia Nilsson & Lucia Naldi & Hans Westlund, 2023. "The role of collaboration and external knowledge for innovation in small food firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(1), pages 135-155, February.
    16. Dubey, Prince & Bajpai, Naval & Guha, Sanjay & Kulshreshtha, Kushagra, 2020. "Mapping gender and marital roles on customer delight by value perception for mobile technology in India," Technology in Society, Elsevier, vol. 62(C).
    17. Rafael A. Araque-Padilla & Maria Jose Montero-Simo, 2022. "The Dynamics behind the Likelihood of Adopting Inclusive Agrarian Innovations in Disadvantaged Central American Communities," Agriculture, MDPI, vol. 12(1), pages 1-20, January.
    18. Behl, Abhishek & Jayawardena, Nirma & Ishizaka, Alessio & Gupta, Manish & Shankar, Amit, 2022. "Gamification and gigification: A multidimensional theoretical approach," Journal of Business Research, Elsevier, vol. 139(C), pages 1378-1393.
    19. Ndip, Francis Ebai & Molua, Ernest L. & Mvodo, Meyo-Elise Stephanie & Nkendah, Robert & Djomo Choumbou, Raoul Fani & Tabetando, Rayner & Akem, Nina Fabinin, 2023. "Farmland Fragmentation, crop diversification and incomes in Cameroon, a Congo Basin country," Land Use Policy, Elsevier, vol. 130(C).
    20. Oscar Montes de Oca Munguia & Rick Llewellyn, 2020. "The Adopters versus the Technology: Which Matters More when Predicting or Explaining Adoption?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 80-91, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pstr00:0000115. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: sustaintransform (email available below). General contact details of provider: https://journals.plos.org/sustainabilitytransformation/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.