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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.

GlobalG.A.P. compliance has often become a key requirement for farmers to access high-value global markets. Yet, the global spread of certification is highly uneven among countries. We assess the drivers and dynamics behind these unequal patterns, applying panel data regressions. Findings show that global agricultural trade networks remain relevant, but are no longer sufficient in explaining certification. Fostering a favourable business environment - via providing secure land tenure and a functioning judicial system - as well as investing in transportation and information infrastructure may facilitate farmers' participation in certification schemes. Stringency of existing public regulations is helpful for overcoming entry barriers.

KULT_online, Nr. 40 (2014): KULT_online 40 (2014)