Can Insetting create a win-win partnership between chocolate makers and cocoa farmers?

Insetting is a way for chocolate makers to compensate their carbon emissions by financing the plantation of trees in supplying cocoa farms. It appears as a new way to finance agroforestry but also to create a link with producers and secure cocoa supply. However, whether insetting contributes to reduce smallholders' vulnerability and increase their fidelity is an empirical question that has to be addressed. A survey has been conducted in Peru (100 producers, 3 focus groups) to assess the benefits of the insetting programs and the challenges that remain. Results show that the partnership developed through the insetting program contributes to alleviate some difficulties preventing farmers to adopt agroforestry practices. However the implementation can be tricky and complex. Since insetting programs are based on a tripartite model dissociating the wood and the cocoa component, the planting of trees alone does not increase farmers' loyalty. In addition, an inadequate implementation might not impact farmers' vulnerability and could therefore lead to a negative vision of agroforestry. Insetting can be a viable financing solution for agroforestry dissemination but cannot be dissociated from an holistic approach of the farm focusing on a joint management of the crops. Alleviating poverty in rural cocoa communities requires also to break out of the carbon paradigm and to turn towards bottom-up approaches favouring social considerations and midterm visions.