The VC contributes to the economic growth and has an inclusive effect from the social point of view even though bottlenecks exist (i.e. low profit for producers). Moreover, cooperatives associations stick out as the best example of success for producers, despite the relative institutional and economic fragility. Taking into account the specific characteristics of STP, especially its geographical position and the infrastructural difficulties for export, the cocoa VC has opportunities for improvement by specialising in the production of certified cocoa for the fine or flavour market segment, and by increasing the array of local quality products for export as well as for tourists and the local market (i.e. chocolate, jams, cocoa pulp syrup, biscuits).
The main strategic risk to the value of cocoa production resides in the loss of the bio or organic certification. This risk will only occur in case of failure to withstand the costs for certification or incapacity to enable traceability. Moreover, other challenges persist such as: price volatility in the international market, unregulated competition for the purchasing of cocoa from small producers, instability in the support of public policies, fragility of agricultural producers’ organisations, reduction in land availability for producers and companies, climate vulnerability and the risk of water sources scarcity.
Therefore, to promote the VC reinforcement, the following recommendations are addressed to the State, the family and agro-industrial businesses and to all associations in the sector:
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Stabilise the public policies in support of the cocoa value chain and strengthen the financial support to increase the value added creation
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Increase the economic entrepreneurial potential of cocoa, investing first in the quality and excellency of the product and, secondly, in increasing its productivity;
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Guarantee the maintenance of the certification of bio quality and support the promotion of the voluntary social certification (linked to the fair trade circuit);
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Reinforce the public support to the ongoing technical work to develop a certification for premium cocoa, with certified origin, to promote the international visibility of the cocoa coming from STP;
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Invest in the training and development of technical skills, including the strengthening on phytosanitary control and environmental management;
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Invest in the development of social competencies in rural areas, especially to support the most vulnerable (producers of pulp and non-associated small producers);
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Modernise the road network to reduce environmental pollution, notably by introducing a system of regular road inspections;
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Promote complementary environmental mitigating measures such as soil conservation to maintain the fertility, and availability of irrigation systems in order to reduce the water scarcity already evident in some less favourable areas.
Year of publication | |
Publisher | European Commission |
Geographic coverage | Sao Tome and Principe |
Originally published | 13 Oct 2021 |
Knowledge service | Metadata | Global Food and Nutrition Security | Sustainable Food Systems |
Digital Europa Thesaurus (DET) | value chaineconomic analysisenvironmental impactsocial analysisCocoa |