GOVERNANCE AND SUSTAINABILITY OF CERTIFIED COCOA PRODUCTION SYSTEMS IN BRAZIL

Abstract

Objective was to analyze how the governance structures established between suppliers and buyers of certified cocoa in the southern region of Bahia in Brazil have contributed for economic, social and environmental sustainability. Three case studies were carried out with ten producers of certified cocoa (organic and UTZ), one Collective Organization (CO) and three purchasing processor companies who sell for external and domestic market. In case study 1, there is more effective economic governance between the purchasing processor company and its downstream buyer, which refers to a valuation of the purchased product, and involves economic and non-economic aspects. In case studies 2 and 3, the contractual structures are not able to promote efficient coordination in this system. This paper have contributions by evidence the existence of production systems that are focused on the quality and value of cocoa, an assessment that involves not only an economic but also environmental issue, because the region in which it is produced (South Bahia region); innovates by linking the importance of the governance of different agents to the operation of higher quality systems and certification.