Do voluntary sustainability standards increase countries' access to cocoa export markets?

Nina Grassnick and Bernhard Brümmer

No 310535, GlobalFood Discussion Papers from Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development

Abstract: Large chocolate manufacturers have committed themselves to only using certified cocoa beans and some governments want to increase the share of certified cocoa products consumed in their countries. Thus, Voluntary Sustainability Standards (VSSs) become quasi-mandatory for cocoa producers and grinders to ensure access to these markets. Yet, their trade effects are unclear. We study the effect of a VSS on raw and processed cocoa exports. We use a unique dataset that contains the UTZ Certified cocoa production quantity of cocoa-producing countries from 2010 to 2016. This allows us to estimate a gravity model of trade and analyse the effect of the share of UTZ Certified cocoa production quantity in a country on the trade value of raw cocoa beans, cocoa powder, cocoa paste and cocoa butter. Our results show that UTZ certification only enhances bilateral exports of cocoa beans and paste, while it reduces exports of cocoa butter and has mixed effects on cocoa powder exports.

Keywords: Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; International Development; International Relations/Trade (search for similar items in EconPapers)
Pages: 34
Date: 2021-04
New Economics Papers: this item is included in nep-agr, nep-dev and nep-int
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:gagfdp:310535

DOI: 10.22004/ag.econ.310535

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