Madagascar's cocoa is recognized as "fine cocoa" by the international cocoa organization. A kilogram of Malagasy cocoa, transformed into chocolate and sold on European markets, can generate value far exceeding the price paid to the producer. The latter receives only 0.2% of the final value, according to a study by Dr. Amena Abdirassoul, an expert in trade policy and lecturer at the University of Antananarivo.
The study, focused on integrating Malagasy cocoa into international value chains and covering the period 2000-2018, reveals a stark asymmetry in value distribution within the sector. The Malagasy producer captures only 0.2% of final value, compared to 0.7% for exporters. The bulk of value is captured downstream in the chain, abroad, particularly by processing and marketing actors.
A Lever Against Poverty
The finding is all the more striking given that prices paid to producers have risen sharply in recent years. They increased from approximately 1,500 ariary per kilogram in 2016 to tens of thousands of ariary today. This growth improves producer revenues but does not fundamentally alter value distribution within the international chain.
According to Abdirassoul's research, rising international cocoa prices do not automatically translate into improved living conditions for producers. It is primarily the increase in prices actually paid at the local level that can positively impact their revenues and help reduce poverty.
Meanwhile, Madagascar's cocoa production has grown significantly over the past decade, reaching nearly 15,000 tons annually. Yet this volume increase alone is insufficient to ensure better revenue distribution in producing areas, where poverty remains high.
For the researcher, one key lever is processing more cocoa in Madagascar. Industrializing the sector would allow the country to retain more added value domestically, rather than primarily exporting raw materials whose processing and marketing subsequently generate most value abroad.
The challenge is ensuring Madagascar's integration into the global cocoa market benefits those who cultivate this wealth. Exporting more is not enough: producers must also capture a significantly larger share of the value created by Malagasy cocoa.