Articles

Upgrading the cocoa value chain in Nan province based on local resources and circular economy principles

Article number
1404_73
Pages
545 – 550
Language
English
Abstract
The research aimed to upgrade the cocoa value chain in Nan province.
The current problems of Nan-cocoa supply chain were investigated and evaluated.
A prototype of the Nan-cocoa business ecosystem was then designed by utilizing a participatory marketing mechanism based on local resources and circular economy principles.
Up-skilling, re-skilling and new-skilling were done to develop “human resources” in related local business units in accordance with the standard frameworks.
The educated farmers could provide good quality cacao pods to local qualified primary processers.
Then the good cocoa beans were produced as “products” that meet “the market’s needs”. It is so called “supply-demand balancing”. The results showed that the productivity of cacao pods from 15.56 to 44.65 kg Rai‑1 per harvesting cycle.
As a result, the revenues of the cocoa farmers increased by 72.17%. The collectors implemented a grading standard system for sorting cacao pods that meet buyers’ requirements.
Thus, qualified cacao pods of 4,948 kg were progressively gathered resulting in revenue raised to 102.9%. From pods-to-beans process, the high-quality cocoa beans could enter both local and non-local markets.
The average demand for cocoa beans is about 1,100 kg month‑1 at a price of 170 Baht kg‑1. Therefore, the bean producing business can gain 187,000 Baht month‑1. The new distribution revenue ratio among cacao producing business unit, collecting business unit, and cocoa bean producing business unit were 21.74, 4.35, and 35.50, respectively.
It could be implied that the participatory marketing mechanism could increase and distribute the revenues fairly among local entrepreneurs.
The three main local business units consisting of cacao producing business, collecting business, and bean producing business were the key success in the Nan-cocoa business ecosystem.
In short, the development of the proposed Nan-cocoa business ecosystem model using the participatory marketing mechanism could enhance the growth of the Nan-cocoa business in a sustainable manner.

Publication
Authors
T. Na Nan, A. Feepakpro, S. Thongpun, V. Nortow, T. Kakham
Keywords
circular economy principles, cocoa, value chain management
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