The Social Innovation of Thai Cocoa Cluster Management Based on BCG Economy Model

Outreach and Engagement

“A social innovation platform for connecting all stakeholders in Thai cocoa business ecosystem based on BCG economy model, IS Thai Cacao (ISTC), Chulalongkorn University focuses on Thai cocoa cluster-based development that leverages collaborative efforts from all sectors to drive positive changes. ISTC mission are to develop innovations needed for cacao and cocoa bean qualification and cocoa waste utilization and to facilitate a proper market matching based on participatory system. Emphasizing in hub of Thai cacao value chain information and knowledge contribution, farmers and local entrepreneurs from 12 provinces in Thailand economic corridor have been educated coupled with using innovative instruments through participatory learning mechanism. Outcomes of ISTC driven could develop 17 new local enterprises and the annual revenue of approximately 128 million THB (US$3,915,570) from Thai cocoa cluster could be consequently generated. Empowering Thai cocoa cluster by ISTC could directly affect to Thailand grassroots economy and achieve 8 SDGs (1,2,3,4,8,9,13,17).”

Among global situation that is facing a cocoa shortage crisis, this is an opportunity of Thai cocoa in the global market. Thai cocoa, a future economic crop of Thailand, plays an important role as a local resource with quantitative potential of approximately 18,028 rai that was cultivated in a whole country. However, cocoa is a new crop, and farmers still lack the knowledge and experience. Therefore, the problems and limitations were productivity in terms of quality and quantity.

IS Thai Cacao (ISTC), Chulalongkorn University is a social innovation platform for connecting all stakeholders in Thai cocoa business ecosystem based on BCG economy model which was upgraded from succession of Local Enterprise Development in Cocoa Business Ecosystem Sandbox Project. According to project results, the route cause analysis indicated that the low productivity in terms of quality and quantity is due to a lack of knowledge in farm management and cacao processing, a young age of cacao three and climate change. Moreover, cacao pods are not the real market demand, but the cocoa bean is. The key success was the knowledge in cacao pod production and processing of pod to bean. Thus, ISTC focuses on Thai cocoa cluster-based development that leverages collaborative efforts from all sectors to drive positive changes. ISTC is expected to be a hub of Thai cocoa cluster information and knowledge to be contributed to farmers and entrepreneurs in the cocoa business ecosystem. ISTC mission are to develop innovations needed for cacao and cocoa bean productivity and cocoa waste utilization and commercialization and to facilitate a proper market matching based on participatory system. All key stakeholders from 12 provinces located in Thailand economic corridor including Nan, Phrae, Payao, Chiang Rai, Chiang Mai, Loei, Phitsanulok, Chanthaburi, Trat, Prachuap Khiri Khan, Chumphon and Nakhon Si Thammarat have been educated coupled with using innovative instruments through participatory learning mechanism. Then their skills and abilities in good quality cacao and cocoa bean productions could be improved rapidly. The outcomes of ISTC driven could develop 17 new various local enterprises and the annual revenue of approximately 185.6 million THB (US$ 5,570,355) from Thai cocoa cluster could be consequently generated. Empowering Thai cocoa cluster by ISTC could directly affect to Thailand grassroots economy and achieve 8 SDGs (1,2,3,4,8,9,13,17). These are the result of focusing on developing the potential and upgrading the competency of local enterprises. Moreover, the participatory market system is also the key factor to fit market requirement and productive quality and quantity. Therefore, rising productivity of 25%, increasing income of 20-30%, increasing the fair income distribution and upgrading of the grassroots economy in the cocoa supply chain could be obtained. ISTC is now collaborating with Thai government sectors, business sectors and global institutes to develop Thailand Cocoa Quality Assurance for Thai cocoa bean ensuring the quality to the world class standard. This will be expected as the new opportunity for Thai cocoa in the global market and the way for sustainable development of Thai cocoa farmers and local enterprise.