Can digital value chain tracing drive the sustainability transition? A closer look at Peruvian cocoa
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Key messages:
- Growing consumer demand for agri-food commodities grown under responsible social and environmental conditions creates financial
incentives for the private sector transition towards sustainable sourcing.
- Verifying farming sustainability is challenging in smallholder context due to complex supply chains. But novel digital technologies allow
tracing commodities back to farms of origin, enabling increased transparency on farm-level practices.
- Implementing digital traceability systems requires commitments by various value chain players, so financial gains from higher market
demand must be shared equitably.
- Given limited external supervision, careful choice of sustainability metrics is important to ensure data accuracy and to limit opportunities for fraud.
- Setting up tracing systems may require investments in farmers’ digital capacity and co-design of user-friendly interfaces. Where increased consumer demand does not cover costs, public payments for ecosystem services can uphold incentives for farmers’ sustainability transition.
Palabras clave
sustainability, digital agriculture, blockchain technology, cocoa industry, traceability, value chains, smallholders-smallholder farmers, agroecology