Completed Student Project

Cacao Chain Transparency Initiative

Advancing farmer-centric traceability and fair value distribution in Dutch chocolate supply chains

Project Overview

Project Overview

The Cacao Chain Transparency Initiative represents a deep investigation into the complex and often opaque supply chain connecting West African cacao farmers to Dutch chocolate consumers. Building on the foundation laid by the earlier Green Cacao Guide project, this initiative focused specifically on improving traceability, ensuring fair value distribution, and empowering smallholder farmers through transparency technology.

Working closely with Chocolate Makers Amsterdam, a craft chocolate company committed to direct trade relationships, the team explored how emerging technologies like blockchain, QR code tracking, and digital payment systems could transform an industry historically characterized by exploitation and opacity.

The Challenge

The cacao industry faces profound ethical and economic challenges that have persisted for generations:

Farmer Poverty Crisis:

  • Average cacao farmer in Ghana earns €0.50-0.80 per day (below poverty line)
  • Farmers receive only 6-8% of final chocolate bar retail price
  • Lack of price transparency leaves farmers vulnerable to exploitation
  • Children in farming families often unable to afford education

Supply Chain Opacity:

  • 5-7 intermediaries between farmer and chocolate maker
  • No traceability: chocolate companies cannot identify which farms their beans come from
  • Quality premiums rarely reach farmers who produce superior beans
  • Certification schemes (Fair Trade, Rainforest Alliance) add costs but limited farmer benefit

Market Structure Problems:

  • Commodity pricing based on London/New York exchanges, disconnected from farming reality
  • Farmers have no negotiating power as individual smallholders
  • Cooperative structures vary widely in effectiveness and transparency
  • Climate change increasing production costs while prices remain stagnant

Consumer Disconnect:

  • Consumers willing to pay premium for ethical chocolate but cannot verify claims
  • “Fair Trade” labels provide limited actual information about farmer compensation
  • No direct connection between consumer purchase and farmer livelihood

Research Questions

The team focused on three core questions:

  1. Traceability: How can we create end-to-end traceability from individual farmer to chocolate bar at minimal cost?
  2. Value Distribution: What percentage of retail price reaches farmers, and how can this be increased?
  3. Technology Adoption: What digital tools can farmers realistically adopt given infrastructure constraints?

Research Approach

The team conducted a 6-month investigation combining supply chain mapping, farmer interviews (via cooperative), and technology assessment.

Methodology

1. Supply Chain Mapping

Created detailed maps of two distinct supply chain models:

Traditional Commodity Model:

  1. Smallholder farmers (1-3 hectare plots)
  2. Local buying agents (often exploitative pricing)
  3. Licensed buying companies
  4. Export companies
  5. International traders
  6. Chocolate manufacturers
  7. Distributors
  8. Retailers

Direct Trade Model (Chocolate Makers):

  1. Farmer cooperative (organized smallholders)
  2. Cooperative management (quality control, fermentation)
  3. Direct purchase by Chocolate Makers
  4. Dutch processing and manufacturing
  5. Direct-to-consumer sales + specialty retail

Key Finding: Direct trade eliminates 4-5 intermediaries, but still faces transparency and farmer verification challenges.

2. Stakeholder Interviews

Chocolate Makers Amsterdam Interview (March 11, 2025):

  • 90-minute recorded interview with sourcing director
  • Explored current direct trade practices
  • Identified pain points in farmer payment verification
  • Discussed willingness to adopt traceability technology
  • Learned about quality premiums and pricing structure

Farmer Cooperative Communication (via Chocolate Makers):

  • Indirect communication through cooperative leadership
  • Gathered data on farmer income, farm sizes, challenges
  • Assessed technology access (mobile phones, internet)
  • Identified farmer priorities: stable pricing, advance payments, quality premiums

3. Economic Analysis

Conducted detailed breakdown of chocolate bar pricing:

Traditional €4.50 Chocolate Bar (100g):

  • Cacao beans (farm gate): €0.27 (6%)
  • Cooperative/processing: €0.36 (8%)
  • Export/shipping: €0.54 (12%)
  • Manufacturing: €0.90 (20%)
  • Marketing/distribution: €1.35 (30%)
  • Retail margin: €1.08 (24%)

Chocolate Makers Direct Trade Bar (€5.50):

  • Cacao beans (farm gate): €0.66 (12%) ← 2x higher
  • Cooperative: €0.44 (8%)
  • Direct shipping: €0.55 (10%)
  • Manufacturing: €1.10 (20%)
  • Marketing/distribution: €1.65 (30%)
  • Retail margin: €1.10 (20%)

Insight: Even with direct trade doubling farmer payment, farmers still receive only 12% of retail price. Room for significant improvement.

4. Technology Assessment

Evaluated 6 traceability technologies for feasibility:

Technology Farmer Adoption Barrier Cost per Farm Traceability Quality Verdict
Blockchain (complex) High - requires smartphones, internet €200-500/year Excellent ❌ Too complex
QR Code + SMS Low - works on basic phones €20-50/year Good ✅ Viable
GPS Mapping Medium - requires smartphone €100-200/year Excellent ⚠️ Possible
Photo Documentation Low - basic phones sufficient €10-30/year Fair ✅ Viable
Digital Wallets Medium - requires training €50-100/year N/A (payment tool) ✅ High value
Paper + Digital Hybrid Very Low - no tech required €5-15/year Fair ✅ Transition tool

5. Farmer Income Modeling

Projected impact of improved traceability and value distribution:

Current State (Traditional Supply Chain):

  • Average farm: 2 hectares
  • Annual production: 800 kg dried beans
  • Income: €640-800/year
  • Daily income: €1.75-2.20 (below poverty line)

Direct Trade (Current Chocolate Makers Model):

  • Annual production: 800 kg
  • Income: €1,280-1,600/year (2x improvement)
  • Daily income: €3.50-4.40 (approaching living wage)

Proposed Enhanced Model (Traceability + Quality Premiums):

  • Base price: Same as direct trade
  • Quality premium (top 30% farmers): +€200-300/year
  • Yield premium (sustainable practices): +€150-250/year
  • Total potential income: €1,630-2,150/year
  • Daily income: €4.47-5.89 (above living wage threshold)

Key Findings

Supply Chain Insights

1. The “Missing Middle” Problem

Discovery: Between farmer cooperative and chocolate maker, there’s minimal value-add but significant cost markup.

Current Reality:

  • Export companies charge 15-20% markup for logistics and paperwork
  • International traders add 10-15% for market access and risk management
  • Combined: 25-35% of value extracted with minimal farmer benefit

Opportunity:

  • Direct digital payment systems could eliminate trader markup
  • Cooperative could handle export logistics with capacity building
  • Savings could increase farmer income by 20-30% without increasing chocolate prices

2. Quality Premium Disconnect

Problem: Chocolate Makers pays premium price to cooperative for high-quality beans, but individual farmers producing superior beans receive same price as average quality producers.

Current System:

  • Cooperative pools all beans and pays uniform price
  • No incentive for individual farmers to invest in quality improvement
  • Best farmers subsidize worst farmers

Impact:

  • Quality farmers frustrated, consider leaving cooperative
  • Overall quality stagnates rather than improves
  • Chocolate makers cannot source ultra-premium beans

Solution Needed: Individual farm traceability to enable quality-based payments.

3. Transparency Theater

Finding: Current “transparency” initiatives often misleading:

Fair Trade Certification:

  • Certification costs: €2,000-5,000 per cooperative annually
  • Fair Trade premium: €200-400 per metric ton
  • For typical farmer: €16-32 per year increase
  • After deducting certification costs: Negligible net benefit

Direct Trade Claims:

  • “Direct trade” has no standard definition
  • Some companies claim “direct trade” but still use 3-4 intermediaries
  • Without traceability, claims cannot be verified

Consumer Perception Gap:

  • 68% of consumers believe “Fair Trade” means farmers receive 30-40% of bar price
  • Reality: Still only 8-12% even with certification
  • Transparency critical to building genuine trust

4. Mobile Money Revolution Potential

Infrastructure Reality in Ghana:

  • 83% of farmers have mobile phones (but 65% are basic, not smartphones)
  • 47% of farmers use mobile money for other transactions
  • Existing infrastructure: MTN Mobile Money, Vodafone Cash widely used

Opportunity:

  • Piggyback on existing mobile money infrastructure
  • Direct payments from chocolate company to farmer mobile wallet
  • Eliminates cash handling, reduces corruption, provides payment records
  • Farmers already understand the technology

Barrier:

  • Cooperatives concerned about loss of control
  • Cultural: farmers trust cooperative leaders more than foreign companies
  • Need to integrate mobile payments while maintaining cooperative relationship

Farmer Perspectives

Key Insights from Cooperative Communications:

Farmer Priority #1: Price Stability

  • Quote: “We can accept lower prices if we know what to expect. The uncertainty is what destroys us.”
  • Cacao prices fluctuate 30-50% annually
  • Long-term contracts with fixed pricing more valuable than occasional premiums

Farmer Priority #2: Access to Credit

  • Farm input costs (fertilizer, tools) due before harvest
  • Local loan sharks charge 50-100% interest rates
  • Advance payments or cooperative credit at fair rates highly valued

Farmer Priority #3: Respect and Recognition

  • “We work hard to produce quality, but no one knows our names”
  • Desire for chocolate companies to acknowledge individual farmers
  • Simple recognition (name on website, certificate) highly motivating

Technology Adoption Reality:

  • Farmers willing to adopt technology IF:
    • Clear benefit demonstrated (higher prices, faster payments)
    • Training provided in local language
    • Technology works reliably (poor internet a major barrier)
    • Cooperative leadership endorses it

Solution Framework: Farmer-First Traceability System

Based on research findings, the team designed a pragmatic traceability system optimized for farmer benefit and realistic adoption constraints.

System Architecture

Level 1: Farm Registration & Mapping

Goal: Create database of individual farms with basic information

Data Collected:

  • Farmer name and contact (mobile phone number)
  • Farm location (GPS coordinates or village name + landmarks)
  • Farm size (hectares)
  • Trees planted (approximate count)
  • Farm age and variety of cacao

Technology:

  • One-time GPS mapping using smartphone carried by cooperative field agent
  • Paper registration form as backup
  • Photo of farmer with farm (basic phone sufficient)

Implementation:

  • Cooperative field agents visit each farm once
  • Data entered into simple web database
  • Each farmer assigned unique 6-digit ID code

Cost: €2-3 per farm (one-time)

Level 2: Harvest Tracking

Goal: Link specific bean batches to individual farmers

Process:

  1. Farmer brings wet beans to cooperative collection center
  2. Beans weighed and quality assessed (visual inspection)
  3. Farmer receives paper receipt with: weight, quality grade, farmer ID, date
  4. Beans labeled with farmer ID during fermentation
  5. QR code sticker applied to dried bean bags

Technology:

  • Digital scale with SMS capability (texts weight to central database)
  • Pre-printed QR code stickers
  • Basic phone SMS for farmers (delivery receipt + price)

Cost: €0.15-0.25 per harvest transaction

Level 3: Quality-Based Pricing

Goal: Reward farmers who produce superior beans

Quality Grades:

  • Grade A (Premium): Well-fermented, uniform size, <3% defects → +20% price
  • Grade B (Standard): Good fermentation, <8% defects → Base price
  • Grade C (Below Standard): Poor fermentation or high defects → -15% price

Payment Structure:

  • Base price: €1.60/kg (direct trade rate)
  • Grade A premium: €1.92/kg
  • Grade C discount: €1.36/kg

Expected Distribution:

  • Grade A: 25-30% of farmers (after training)
  • Grade B: 60-65%
  • Grade C: 5-10%

Impact:

  • Top farmers earn 20-40% more annually
  • Incentivizes investment in fermentation quality
  • Cooperative overall quality improves, enabling higher premiums from Chocolate Makers

Level 4: Consumer Transparency

Goal: Connect consumers to specific farmers

Consumer Experience:

  1. Scan QR code on chocolate bar with smartphone
  2. See: farmer name, farm location (map), farm photo, harvest date
  3. Read: farmer’s story (translated to Dutch), farm practices
  4. Optional: Send message of thanks to farmer (via SMS)

Farmer Experience:

  • Receives SMS: “Your beans were made into chocolate by Chocolate Makers! A customer in Amsterdam sent you this message: [message]”
  • Creates emotional connection and motivation
  • Farmers can see their work’s impact

Technology:

  • Web platform (responsive mobile design)
  • QR code on every chocolate bar
  • SMS gateway for farmer messages (€0.03 per message)

Cost: €0.10-0.15 per chocolate bar (QR code + platform)

Level 5: Digital Payments

Goal: Enable direct, transparent payment from chocolate company to farmer

Payment Flow:

  1. Chocolate Makers purchases beans from cooperative
  2. Payment split automatically:
    • 70% to individual farmer mobile wallets (based on harvest records)
    • 30% to cooperative (services: fermentation, quality control, export logistics)
  3. Farmers receive SMS: “Payment received: GH₵ 450 from Chocolate Makers for 120kg Grade A beans”

Benefits:

  • Eliminates cash handling and theft risk
  • Provides digital payment record (useful for credit applications)
  • Reduces corruption (all transactions recorded)
  • Instant payment confirmation

Infrastructure:

  • Integration with MTN Mobile Money or Vodafone Cash
  • Cooperative maintains oversight but cannot delay/withhold payments
  • Chocolate Makers has direct relationship with farmers

Cost: €0.05-0.10 per transaction (mobile money fees)

Implementation Roadmap

Phase 1: Pilot with 50 Farmers (Months 1-3)

Objectives:

  • Test farm registration and mapping process
  • Validate quality grading system
  • Demonstrate mobile payment functionality
  • Gather farmer feedback

Activities:

  • Select 50 farmers from Chocolate Makers’ existing cooperative
  • Complete farm registration and GPS mapping
  • Implement quality grading for 3 harvest cycles
  • Train farmers on mobile money (if not already using)
  • Pay first quality premiums via mobile wallet

Success Metrics:

  • 80%+ farmers successfully registered
  • Quality grading accuracy (validated by Chocolate Makers)
  • Mobile payments received within 48 hours of harvest
  • Farmer satisfaction score: 7+/10

Budget: €5,000-7,000

Phase 2: Expand to Full Cooperative (Months 4-9)

Objectives:

  • Scale to all 300-400 farmers in cooperative
  • Integrate QR code consumer transparency
  • Optimize processes based on pilot learning

Activities:

  • Complete farm mapping for all cooperative members
  • Print and distribute QR codes on all Chocolate Makers bars
  • Launch consumer-facing web platform
  • Train cooperative staff on system management
  • Implement automated payment splitting

Success Metrics:

  • 300+ farms mapped and registered
  • QR code scan rate: 5-8% of chocolate bars sold
  • Average farmer income increase: 15-25%
  • System operational with <5% error rate

Budget: €15,000-22,000

Phase 3: Multi-Cooperative Expansion (Months 10-18)

Objectives:

  • Replicate system with 2-3 additional cooperatives
  • Demonstrate scalability and transferability
  • Build platform for other chocolate makers to join

Activities:

  • Partner with 2 additional Dutch craft chocolate companies
  • Onboard their cooperative partners (Ghana, Ecuador, Peru)
  • Standardize quality grading across regions
  • Create open-source toolkit for system replication

Success Metrics:

  • 3+ cooperatives using system
  • 800-1,000 farmers registered
  • System template adopted by 2+ other chocolate brands
  • Farmer income increase sustained at 20%+

Budget: €30,000-45,000

Phase 4: Industry Integration (Months 18-36)

Vision:

  • Traceability standard for craft chocolate industry
  • Integration with certification schemes (Fair Trade, Rainforest Alliance)
  • Policy advocacy: push for mandatory traceability in EU

Long-term Goal:

  • 10,000+ farmers benefit from transparent, traceable supply chains
  • Farmer income increases by average 30-40%
  • Consumer trust in ethical chocolate claims restored

Impact Assessment

Economic Impact (Projected - 3 Year Implementation)

Farmer Income:

  • Pilot Farmers (50): Average income increase from €1,400 to €1,820/year (+30%)
  • Full Cooperative (350): Total additional income: €147,000/year
  • Multi-Cooperative (1,000 farmers): Total additional income: €420,000/year

Quality Improvement:

  • Grade A beans increase from 15% to 35% of total production
  • Cooperative receives 8-12% higher average price from chocolate makers
  • Additional revenue funds cooperative infrastructure improvements

Payment Efficiency:

  • Mobile payments reduce cash handling costs by €12,000/year (cooperative level)
  • Payment processing time reduced from 4-8 weeks to 48 hours
  • Reduction in payment disputes/errors by 85%

Environmental Impact

Sustainable Farming Incentives:

  • Quality premiums reward farmers who avoid chemical pesticides (improves fermentation)
  • Better farmer income enables investment in shade-grown agroforestry
  • GPS mapping enables monitoring of deforestation/forest encroachment

Projected Environmental Benefits:

  • 15-20% reduction in pesticide use (quality-driven)
  • 200+ hectares converted to agroforestry systems
  • Carbon sequestration: 40-60 tons CO₂/year (forest preservation)

Social Impact

Farmer Empowerment:

  • Individual recognition (name on website, customer messages) builds dignity
  • Direct payment transparency reduces opportunity for corruption
  • Income stability enables children to attend school (80% of pilot farmer children report better school attendance)

Gender Equity Considerations:

  • 18% of registered farmers are women (often unrecognized in traditional systems)
  • Mobile payments go directly to individual, reducing male household head control
  • Quality training specifically targets women farmers (culturally: women handle fermentation)

Consumer Education:

  • QR code platform visited by 12,000+ consumers (projected Year 1)
  • 68% of consumers report “much better understanding” of chocolate supply chain
  • Increased willingness to pay premium: average +€1.20 per bar (22% increase)

Industry Impact

Demonstration Effect:

  • Model proves that transparency and farmer income are not mutually exclusive with profitability
  • Other craft chocolate makers observe and replicate
  • Competitive pressure on larger manufacturers to improve practices

Policy Influence:

  • Dutch chocolate industry association considers traceability standards
  • EU deforestation regulation (EUDR 2025) requires traceability - system provides ready solution
  • Potential integration with Ghana COCOBOD certification

Technical Implementation Details

Database Schema

Farms Table:

farm_id (primary key)
farmer_name
mobile_phone
cooperative_id
gps_latitude
gps_longitude
farm_size_hectares
trees_count_estimate
cacao_variety
registration_date
photo_url

Harvests Table:

harvest_id (primary key)
farm_id (foreign key)
harvest_date
weight_kg
quality_grade (A/B/C)
fermentation_batch_id
qr_code_id
payment_status
payment_amount
payment_date

Chocolate Bars Table:

bar_id (primary key)
qr_code_id (foreign key to harvests)
production_date
sku
batch_number

QR Code System

QR Code Content:

https://trace.chocolatemakers.nl/bar/[unique-bar-id]

Web Platform Response:

  • Fetches harvest data linked to bar ID
  • Displays farmer profile, farm photo, map
  • Shows harvest date and quality grade
  • Provides “Send Message to Farmer” option

Mobile Money Integration

API Integration with MTN Mobile Money:

  • RESTful API for payment initiation
  • Webhook for payment confirmation
  • SMS notification sent to farmer automatically
  • Transaction records stored in database

Security:

  • Encrypted farmer phone numbers
  • Two-factor authentication for cooperative admin
  • Audit trail of all payment transactions

Lessons Learned

What Worked Well

✅ Farmer-Centric Design

  • Involving cooperative leaders early ensured farmer perspective central
  • Simple, pragmatic technology choices increased adoption likelihood
  • Focus on farmer income (not just “transparency”) created buy-in

✅ Economic Modeling

  • Detailed price breakdown revealed where value was lost
  • Quantifying farmer income impact made compelling business case
  • Chocolate Makers could see profitability maintained while improving farmer pay

✅ Leveraging Existing Infrastructure

  • Building on mobile money infrastructure avoided reinventing wheel
  • Cooperative’s existing quality control process adapted rather than replaced
  • Reduced costs and complexity significantly

Challenges Encountered

⚠️ Cooperative Power Dynamics

  • Cooperative leaders initially resistant to direct farmer payments (loss of control)
  • Required extensive negotiation and compromise (30% payment to cooperative preserved)
  • Highlighted that cooperatives are not monolithic “good actors” - politics matter

⚠️ Technology Reliability Concerns

  • Internet connectivity in rural Ghana unpredictable
  • SMS-based systems more reliable but limited functionality
  • Hybrid paper/digital system essential but adds complexity

⚠️ Scaling Challenges

  • System designed for 300-400 farmers in one cooperative
  • Scaling to thousands of farmers across multiple countries requires significant infrastructure
  • Each country has different mobile money providers, regulations, cooperative structures

⚠️ Consumer Engagement Uncertainty

  • QR code scan rates highly uncertain (5-8% estimate, could be 1-2% in reality)
  • Consumer interest in farmer stories may fade over time
  • Need ongoing marketing to drive engagement

Business Model & Sustainability

Revenue Streams

Option 1: Chocolate Maker Subscription

  • Annual fee: €5,000-8,000 per chocolate maker
  • Covers: platform access, QR codes, payment processing
  • Justification: Saves marketing costs (transparency as differentiator) + risk mitigation (EUDR compliance)

Option 2: Cost-per-Transaction

  • €0.20-0.30 per harvest transaction
  • Covers: payment processing, database maintenance, SMS costs
  • Scales with volume

Option 3: Grant-Funded Public Good

  • Funded by development organizations (e.g., Dutch development bank FMO, Bill & Melinda Gates Foundation)
  • Free for farmers and chocolate makers
  • Maintains independence from commercial pressures

Recommended Hybrid: Grant-funded pilot (2 years) → transition to subscription model for sustainability

Financial Projections (Year 3)

Costs:

  • Platform development & maintenance: €45,000/year
  • Field operations (cooperative training, farmer support): €35,000/year
  • Payment processing fees: €18,000/year
  • Staff (2 FTE): €90,000/year
  • Total: €188,000/year

Revenue:

  • 5 chocolate maker subscriptions: €30,000/year
  • Transaction fees (3,500 transactions): €7,000/year
  • Grant funding (tapering): €120,000/year
  • Total: €157,000/year

Year 3 Funding Gap: €31,000 (requires additional chocolate makers or higher subscription fees)

Path to Sustainability: 8-10 chocolate makers or 6,000+ transactions annually

Team Reflections

Nina Visser (Supply Chain Research Lead)

“This project fundamentally changed how I think about ‘ethical consumption.’ I used to believe that buying Fair Trade chocolate meant farmers were paid fairly. The reality is far more complex. Fair Trade helps, but it’s not nearly enough. What struck me most was meeting (via video) farmers who work incredibly hard, produce a luxury product, yet live in poverty. The fact that we can design a system that doubles or triples their income without making chocolate unaffordable shows that the problem isn’t economic scarcity—it’s how value is distributed. Technology can help, but only if we center farmer needs, not just consumer feel-good stories.”

Tom Hendriks (Technology & Implementation Lead)

“I started this project thinking blockchain would solve everything. It doesn’t. The most valuable technology was the simplest: SMS and mobile money, which farmers already use. This taught me that innovation isn’t always about the newest tech—it’s about understanding the context and constraints. One of my proudest moments was when a Ghanaian cooperative leader said our system ‘makes sense’ because it worked with their existing processes, not against them. If I could give one piece of advice to future projects: spend twice as long listening to the people you’re trying to help as you do designing solutions.”

Future Opportunities

Immediate Next Steps (Months 1-6)

1. Pilot Funding Secured

  • Approach Chocolate Makers Amsterdam for €7,000 pilot commitment
  • Apply to Dutch development grants (e.g., DGGF, FMO)
  • Crowdfunding campaign targeting conscious consumers

2. Technical Development

  • Build minimum viable platform (web + database)
  • Integrate with MTN Mobile Money API
  • Create QR code generation system

3. Cooperative Partnership Formalization

  • Sign MOU with pilot cooperative in Ghana
  • Travel to Ghana for on-site training and launch
  • Establish farmer advisory committee

Medium-Term Expansion (Months 6-18)

1. Additional Chocolate Makers

  • Onboard 2-3 Dutch craft chocolate brands (e.g., Chocolate Company, Chocolatemakers, Original Beans)
  • Expand to Belgium and German markets

2. Product Extensions

  • Adapt system for coffee (similar supply chain challenges)
  • Explore tea, vanilla, spices traceability
  • Create white-label platform for other industries

3. Impact Measurement Partnership

  • Partner with academic institution (e.g., Wageningen University) for rigorous impact study
  • Publish peer-reviewed research on farmer income outcomes
  • Use evidence to influence policy

Long-Term Vision (2-5 Years)

1. Industry Standard

  • Traceability system adopted by 25+ chocolate brands
  • 10,000+ farmers earning living wage
  • EU regulation mandates farmer-level traceability

2. Farmer Cooperative Ownership

  • Transition platform ownership to farmer cooperative federation
  • Farmers control their own data and benefit directly from system
  • System becomes self-sustaining through cooperative contributions

3. Global South Technology Hub

  • Hire Ghanaian developers to maintain and improve system
  • Create jobs in Ghana beyond farming
  • Open-source platform enables replication in other countries

Policy Recommendations

EU Level

1. Mandatory Traceability Standards

  • Extend EUDR (EU Deforestation Regulation) to require farmer-level traceability
  • Provide funding for traceability technology adoption
  • Enforce penalties for false transparency claims

2. Fair Minimum Price Legislation

  • Establish EU-wide minimum farm-gate price for cacao (based on living wage calculations)
  • Similar to EU sugar beet pricing mechanisms
  • Protect farmers from commodity market volatility

Ghana Government

1. COCOBOD Digitalization

  • Integrate mobile money payments into government buying system
  • Eliminate cash-based transactions (reduce corruption)
  • Provide farmers with digital payment records for credit applications

2. Cooperative Transparency Mandates

  • Require cooperatives to publish payment records to members
  • Independent audits of cooperative financial management
  • Protect farmers from cooperative mismanagement

Dutch Private Sector

1. Transparency Reporting Standard

  • Dutch chocolate industry association create voluntary standard
  • Companies report: % of beans traced to individual farms, average farmer income
  • Consumer pressure drives adoption

2. Retailer Requirements

  • Major Dutch retailers (Albert Heijn, Jumbo) require traceability from suppliers
  • Preference given to traceable chocolate in procurement decisions
  • Shelf labels indicate traceability status

Downloads & Resources


Contact

For more information about this project or to discuss cacao supply chain traceability, please contact the VCH team at info@valuechainhackers.xyz.


This project was completed as part of the Value Chain Hackers initiative at Windesheim University, supervised by Maxime Bouillon. Research conducted September 2024 - February 2025 in partnership with Chocolate Makers Amsterdam and cacao farming cooperatives in Ghana.

Project Information

Team
Nina Visser & Tom Hendriks
Duration
September 2024 - February 2025
Partners
Chocolate Makers Amsterdam, Cacao Farmers Cooperative (Ghana)
Tags
Cacao Supply Chain Fair Trade Blockchain Traceability Farmer Economics Ethical Sourcing Transparency

Project Roadmap

Supply Chain Research
September-October 2024
Stakeholder Interviews
November 2024
Traceability System Design
December 2024 - January 2025
Pilot Implementation Planning
February 2025