Livelihood strategies of cacao producers in Ecuador: Effects of national policies to support cacao farmers and specialty cacao landraces

This study identifies the livelihood strategies pursued by small cacao farmers in the Guayas coastal region in Ecuador, where two distinct cacao varieties are grown: the fine flavor variety, Cacao Nacional (CN), and a hybrid variety (CCN-51). Enhancing CN production is regarded as an economic development strategy since CN variety beans are characterized by premium prices in international markets. This study aims to assess the trade-offs faced by small cacao producers in the production of specialty (CN) vs. commodity (CCN-51) cacao and how they affect their livelihoods. A detailed household survey sampled 188 households. Based on activity variables, four latent profiles of livelihood strategies were identified, which were related to capital asset endowment and income share variables. The results show that there was not a clear gap between cultivation of CN and CCN-51, as 60% of the sampled households simultaneously grew both varieties. The results indicate that the variable “share of land allocated to CN” does not significantly contribute to discriminating among profiles. Households with a low share of land allocated to CCN-51 showed higher income diversification strategies and vice versa. Our study also shows that the lack of appropriate incentives may threaten the future cultivation of CN since the National policy for CN rehabilitation has had little impact on the more cacao-driven profiles that have a lower asset endowment. The design, structuring and maintenance of a domestic differentiated value chain for the CN variety, together with income diversification measures and prior improvement on the asset endowment of these profiles, seems to be the pathway to improve the livelihoods of small farmers and increase the success of the current policy for fine flavor cacao rehabilitation at the national level. •CN cultivation does not contribute to discriminating among livelihood strategies.•Higher income diversification strategies allocate less land to CCN51.•Policy measures do not improve the asset endowment of its target beneficiaries.•Lack of price premiums for small farmers may threaten the mid-term viability of CN.•Absence of a value chain for CN undermines incentive appraisal by small farmers.