The role of collective action in the cacao sector in enhancing sustainability, market upgrading and agro-biodiversity conservation

Abstract
Many farmers around the world are confronted with the decision of adopting high-yielding varieties or maintaining the diverse portfolio of ancient varieties and cultivars that constitute the basis of local and global agrobiodiversity. This dilemma often resolves towards ensuring short-term individual profits at the expense of long-term biodiversity conservation. In this paper we argue that specialty markets can act as a driving force to resolve this balance towards the conservation of agrobiodiversity, supported by collective action. We use the case of the Ecuadorian cacao producers to illustrate this possibility. The upper Amazon is the center of origin of cacao, one of the top traded global commodities. Since the 1990s Ecuadorian farmers have been substituting regional varieties with a clone developed in the country, the CCN-51 that has shown to be a high-yielding variety that is also resistant to monilia, a common cacao disease. In some areas of the country, however, farmers belonging to cooperatives have been able to keep local varieties, obtain ecological certifications for adhering to the recommended practices, and reach specialty markets that pay higher prices for their cacao. We call this set of benefits upgrading. We conducted a study of 205 household surveys and several interviews in four provinces along the West coast of Ecuador. We assessed the role of collective action (in the form of cooperative participation) in enhancing farmers’ access to high-value chains. Our results show that collective action enables economic upgrading by providing participants with higher incomes and more formal contracts. As farmers join direct trade and certification, other benefits are accrued, such as cacao and non-cacao tree biodiversity conservation. This analysis shows that, once niche markets are open for farmers, collective action boosts the benefits of such opportunities.