Effects of the marketing channel selection on productivity and efficiency in cocoa production in Tocache, Peru

On a global scale, the demand for cocoa requests a fulfillment of international quality standards. Thus, cocoa collection centers are established by commercial operators -the cooperative or intermediaries- with the objective of integrating the crop from many small farmers into relatively large batches for efficient handling. In Tocache, there is a specific structure of cooperatives that is led by the Central Aroma Cooperative, followed by small cooperatives located within the province. The objective of this study is twofold: 1) analyze the cocoa production between the Peruvian cocoa farmers who commercialize through a cooperative and intermediaries and 2) determine if technical assistance and socio-economic variables influence their decisionmaking process of belonging to a marketing channel. A survey of 469 cocoa farmers (275 cooperative members and 194 who commercialize through intermediaries) in six different districts in Tocache, San Martin was carried out between January and June 2015. A production function for each marketing channel was first performed. Then, independent t-test and Chi-Square test models were used in order to show how these characteristics impact on the farmers’ choice of which marketing channel they use at the post-harvest stage. Results of the production functions were similar between farmers from both marketing channels. Outcomes also demonstrated that farmers do not have significant differences in their education. Nonetheless, those farmers who possess willingness to receive technical assistance would like to participate as cooperative members.
Moreover, farmers with more experience in cocoa cultivation, possess a property title and have more yield contributes to the cooperative membership. Contemplating these factors are important for the development of farmers’ organizations as well as the long term improvement of the region as a whole.