Socio-economic characteristics impact on Peruvian Cocoa Farmers’ Welfare: Acopagro Cooperative- Case Study

In the Peruvian jungle, there are two main cocoa marketing channels. First, there are the intermediaries who just focus on the high prices. Second, there is the cooperative, which participates in the international market and provides benefits to its members. The Acopagro
Cooperative, a Peruvian organization, for example, has contributed to the shift from illegal crops like coca to an alternative crop like cocoa which gives small scale farmers a sustainable welfare. This study analyzes Peruvian cocoa farmers’ socio-economic characteristics as these personal attributes affect their decision-making process in the cocoa commercialization for their long term self-improvement. As part of this analyis, a survey of 243 farmers in Juanjui, San Martin-which is the main cocoa production area in Peru-was carried out between December 2009-January 2010. A binary logistic model was then used in order to show how these characteristics impact on the farmers’ choice of which marketing channel to distribute their products. The results demonstrated that those farmers who possess willingness to receive technical assistance among other features would like to participate as cooperative members. Moreover, although, former studies showed that education had a positive effect on being a cooperative member, in this particular case, the findings indicate a non significant impact due to the elementary school level of the farmers who chose Acopagro. In addition, these characteristics also illustrated that farmers who join the cooperative not only think about commercializing their cocoa but are also concerned about their own knowledge and wellbeing. Therefore, policy makers and farmers’ organizations should consider how these socioeconomic attributes encourage farmers’ marketing channels for contributions not only towards the development of these organizations’ but also to that of their communities as a whole