Organic Chocolate for the Swiss Market: the Case of Collaborative Efforts Between a Private

Organic Chocolate for the Swiss Market: The case of collaborative efforts between a private firm in Switzerland and small-scale cocoa producers in Honduras

Ingrid Fromm

Swiss College of Agriculture

Laenggasse 85

3052 Zollikofen

Switzerland

Small-scale cocoa producers in Honduras have faced a series of ups and downs over the past decade due to the fluctuating prices for raw cocoa and market uncertainties. Sometimes the price paid to producers did not even cover production costs. However, for about 200 cocoa producers in northern Honduras, these days of uncertainty seem to be over. Thanks to the collaborative relationship they have developed with a visionary and social responsible firm in Switzerland, they have now come under a contract scheme where this firm supports them in production and certification aspects and buys the cocoa. This firm is Chocolats Halba, a Swiss Chocoltier, and a subsidiary of Coop, one of the largest retailers in Switzerland. Chocolats Halba is working together with Helvetas, a private development cooperation organization, several small cocoa farmers’ organizations (e.g. APACH) in Honduras, and the Association of Honduran Cocoa Producers (APROCACAHO) to produce and export organic cocoa. The advantage of this project is that Chocolats Halba aids organic cacao farmers in quality improvements, building up infrastructure and supports the producers in export-related paperwork. Helvetas and other NGOs help the producers strengthen their organization, certifications (organic, FairTrade), capacity building concerning cocoa production and other relevant issues. Members of Chocolats Halba visit the producers in Honduras a number of times a year to make sure things are progressing well. The main benefit of having a close collaboration with the organic farmers is that Chocolats Halba can sell to the consumer in Switzerland a product where they can trace the cocoa beans they use to make their chocolates right down to the trees where they were produced. They work closely with a base of about 200 small-scale producers. Furthermore, a strong relationship and joint investments enables the value chain to jointly improve quality and therefore add value to the product. The tangible result is the collaborative relationship that Chocolats Halba, as part of their business philosophy, has built with small-scale organic cocoa farmers in Honduras. The organic cocoa farmers in Honduras can now sell their cocoa beans to a Swiss company and Chocolats Halba has a secure source of certified organic cocoa beans, improving the transparency of this chain and assuring the farmer a fair price in a long term perspective. This case is a successful example of how a firm with a social vision can help small-scale producers secure a steady income, add value to their products while bringing to the consumer in Europe fair trade organic chocolate where the raw materials can be traced to the farm level.