Constructing a Multinationals’ Inclusive Sourcing Indicator for Impacting Farmer Business Models: Application in Cocoa Cases

Abstract

Cocoa multinationals have committed themselves to source and use close to 100 percent sustainable certified cocoa beans, aiming to improve farmers’ livelihoods. As their current sourcing strategy is aimed mainly at environmental sustainability, they need a different one. This study seeks to amend this by providing an inclusive sourcing indicator, representing the integral costs of certified cocoa beans, to leverage values to impact farmers business model in high value‐adding supply chains. Because this indicator is explorative indicator the applicability has been explored in four cases in Ghana and the Ivory Coast from the literature. This study’s findings call for a review of conventional sourcing models and certification schemes to anticipate the mainstreaming of sustainable sourcing and the improvement of farmers’ livelihoods.