Sustainable cocoa supply chain in East Java, Indonesia: Potential and risk identification

Abstract

Despite the significant role of cocoa in the economy, cocoa farmers well-being remains low. The current cocoa production process concentrates on downstream activities, primarily procuring raw materials without processing or fermentation, which results in a lack of added value in the supply chain. Smallholder plantations contribute the most to cocoa production but face obstacles due to limited knowledge, technology, and institutional support. Government initiative programs aimed at enhancing cocoa’s export potential suggest integrating sustainability aspects into the cocoa supply chain. East Java, with regions and potential for cocoa plantations, becomes a prospective province to apply the cocoa sustainability concept. Conducting studies to understand the potential, opportunities, risks, and threats within the cocoa supply chain is needed. The main objective of this study is to identify the potential and strengths within the cocoa supply chain while addressing weaknesses and anticipating threats. The results show in the SWOT analysis, that 8 variables were strengths, 14 variables were weaknesses, 9 variables were opportunities, and 10 variables were threats. The classification of variables in SWOT analysis shows that farmer actors have higher weaknesses and threats. So that risk identification for farmer actors is analyzed to determine mitigation strategies that can be implemented.