Cacao production takes place in diverse environments and agricultural systems, with its performance and income generation potential depending on multiple contextual factors. The crop has been promoted among smallholders in South America as a driver for sustainable rural development, but a systematic comparison of the economic performance of diverse cacao production systems in this region was missing, which led to a lack of consistency and clarity on the conditions that enable the crops’ success in terms of profitability and income generation for farmers.
Authors aimed to understand the economic performance of different cacao production systems from Colombia, Ecuador and Perú, and the factors that affect their profitability and income generation potential with regards to poverty and living income benchmarks under varying contexts. They employed the ‘typical farm approach’ to perform a comparative analysis of fifteen different cacao production systems from six distinct agroecological regions from Colombia, Ecuador and Perú. Results shown that eight out of the fifteen systems analyzed were found to be economically viable, while the remaining systems generate considerable losses. Positive outcomes depend on a combination of factors
