As a major employer and source of export income, the cocoa industry value chain is crucial to Indonesia’s economic future. However, cocoa production has recently declined because the majority (over 85 percent) of cocoa plantings belong to small holders who have not implemented good agricultural practices and whose farm management is relatively non-intensive.
In addition ageing cocoa trees and exhaustion of soil nutrients (forest rent) have simultaneously caused a decline in national cocoa productivity. Labour constraints such as poor farmer health and nutrition are a key factor in the decline of cocoa production in Indonesia, however reliable data are as yet unavailable.
This project aims to identify the main constraints to productivity and sustainability of cocoa production in Indonesia, and to make recommendations that will address these issues.