ARS 1000: The Future of Cocoa? | #PSC 160

By Clay Gordon | a month ago | | 10 min read

Original photo frank mckenna / Unsplash

Episode 160 of #PodSaveChocolate casts a critical look at ARS 1000, a continent-wide framework for sustainable cocoa. What is its future? Will the idea spread to other cocoa-producing regions? [updated]

When and Where to Watch

🗓️

This stream begins at 11:00 MST (10:00 PST, 12:00 CST, 1:00 pm EST), on Friday, Nov 7th, 2025.

Links below to watch LIVE and to view the archived episode.

Click on this (shareable) link to watch on YouTube. Please subscribe (free!) to the @PodSaveChocolate YouTube channel, like this video, comment, and **share** this episode to help grow the #PSC community.

Watch and comment LIVE or view the archived episode on LinkedIn. Join my network on LinkedIn to receive notifications and to refer business to each other.

Watch this episode on LinkedIn

Watch and comment LIVE or view the archived episode (for 30 days from the date of the livestream; thereafter on YouTube) on TheChocolateLife page on Facebook. (Follow TheChocolateLife on Facebook to receive notifications and catch up on other content.)

Watch this episode on Facebook

Overview - Episode 160

Four years ago, I hosted an episode of TheChocolateLife::LIVE that featured Nick Davis of One One Cacao (Jamaica).

Among the memorable topics we discussed in that episode I recall Nick asking a question that went something like “Why is everyone expecting people in producing countries to start cooperatives? What don’t [specialty] chocolate makers start them?”

I’ve thought about that question many times since then and have discussed the idea of creating a co-op of chocolate makers on many occasions. I don’t know why chocolate makers do not seem to be interested in cooperatives, but they don’t appear to be – at least not those I speak with.

The formation of cooperatives in producing countries is determined by money, culture, money, regulations, money, politics, and money. In many (if not most)‚ instances, cooperatives are the only way to afford the cost of certification. And the direct and indirect costs of certification put a lower bound on the number of members (a proxy for production) required to be profitable ventures.

In 2018 at the Concordia Conference (in Manhattan, timed to occur during the UN General Assembly), I was introduced to a cocoa trading company that introduced me to the idea of organizing small groups of farmers who, among them, could produce a minimum of one forty-foot container (about 25MT) during the main harvest.

I find the idea intriguing and have been talking about this idea with contacts in Colombia and Ecuador, extending it to cooperative land use and agricultural practices.

So I was intrigued to learn about ARS 1000-1:2021, a standard produced by the African Organization for Standardization (ARSO), an African intergovernmental organization established by the United Nations Economic Commission for Africa (UNECA) and the Organization of African Unity (AU) in 1977.

ARS 1000 is “about” sustainable cocoa and is divided into three parts:

Management Systems and Performance
Quality and Traceability
Certification Schemes

UPDATE: Sustainability is defined in §3.74 in accordance with the Bruntland definition, “the needs of the present are met without compromising the ability of future generations to meet their own needs.” However, “sustainability” is referred to as an objective [of the standard] rather than a requirement.”

In this episode of PodSaveChocholate I will focus on two of the three parts; Management Systems and Performance and Certification Schemes, and ask the questions:

How much will ARS 1000 compliance cost and who pays?
“Is ARS 1000 the Future of Cocoa?”
Will the idea spread to other cocoa-producing regions.

Pre-Stream Notes

The ARS 1000 series targets multiple audiences across the cocoa ecosystem.

Core users are Recognized Entities (individual farmers, Farmer Groups, Farmer Cooperatives) who must implement management systems, CFDPs, and comply with economic, social, and environmental requirements.

ARS 1000 also addresses:

Regulator/Legal Entities (national bodies coordinating the sector) that own and govern the certification scheme;
Certification Bodies and auditors responsible for assessing compliance and traceability, and other
Cocoa supply chain actors (e.g., first buyers, grinders, warehouse/transport providers) who handle, segregate, and document sustainably produced cocoa from farm to export.

Proponents argue:

“ARS‑1000 is designed by African institutions to professionalize cocoa and maintain market access, especially to the EU, by providing traceability, deforestation assurance, and due diligence scaffolding. It does not guarantee EUDR/CSDDD compliance but materially strengthens the case in importer risk assessments.”

While ARS 1000 is nominally “about” cocoa sustainability, two-thirds of the standard’s sections (Parts 1 and 3) outline the framework for the bureaucracies that need to be installed to become ARS 1000-compliant.

What ARS‑1000 requires (that have cost implications)

Farm management & GAP: Training, record‑keeping, PPE, safe agrochemical use, pruning/rehab programs.
Traceability & geolocation: Farm registration, GPS points/polygons, lot‑level tracking to first purchase.
Deforestation safeguards: Screening farms against protected areas, evidence of legality.
Human rights & due diligence: Policies, grievance mechanisms, risk assessment/mitigation, monitoring (e.g., CLMRS).
Certification & audits: ICS (Internal Control Systems) at coop level, external audits, corrective actions and re‑audits.Together, these imply recurring costs for data collection/maintenance, supervision, and certification fees. ⁠

As I mentioned in my Changing Landscape of Cocoa Sourcing series, the rise of the “certification industrial complex” has negative consequences that, I think, the standard leans heavily into.

Two key questions I have after doing my research for this episode are: 1) “Does a future for sustainable cocoa demand more bureaucracy?” 2) “Who pays for the cost of compliance?”

Notes on Implementation Costs

Question: “Under ARS 1000, can an individual smallholder cocoa farmer with a 5-hectare farm producing 600kg per hectare realistically be in full compliance with all aspects of the standard, paying 100% of the costs?”

An individual smallholder can be a Farmer as an Entity if they have “enough resources to stand on their own to meet the standard requirements.” That means maintaining a management system, documented information, CFDP (Cocoa Farm Development Plan) diagnosis and coaching, monitoring, internal audits, and meeting social and environmental rules across all fields. There is no minimum area or yield threshold [specified in ARS 1000]; a 5‑hectare farm at 600 kg/ha (≈3,000 kg total) can qualify if everything required is implemented. But the practicality hinges on how the standard’s financing works.
It’s possible [for an individual smallholder cocoa farmer] only if costs are shared via a negotiated premium/cost‑recovery scheme
As a solo “Recognized Entity,” it’s rarely realistic.

What ARS may do (an unintended consequence), if widely implemented, is widen the gap between smallholders and estate-holders and co-ops. Smallholder farmers who, for one reason or another, cannot join a recognized entity.

Issues of ethnicity, language, and other cultural differences can make the formation of co-operatives difficult. Smallholder farmers who cannot join a recognized entity run the risk of becoming third-class citizens, not just second-class citizens.

The Definition of a Farmer Group

A Farmer Group is an association of legally registered cocoa farmers/producers. It exists to coordinate members under a Recognized Entity for registration, CFDP development, audits, training, traceability, and collective compliance.

The Definition of a Farmer Cooperative

A Cooperative is an independent, jointly owned, democratically governed entity formed voluntarily to meet members’ economic, social, and cultural needs. It must follow cooperative principles: voluntary/open membership, democratic control, economic participation, autonomy, education/information, cooperation among cooperatives, and community commitment, with no discrimination. It may serve non-members within its statutes.

Both are “Recognized Entities” with defined roles, responsibilities, documented information, and authority to implement management systems, CFDPs, and traceability, and to engage in financial agreements (e.g., premiums, cost-recovery). What are the substantive differences? Governance models.

Per farmer (one‑time setup; then annual recurring)

Training & onboarding: $10–$30 per farmer (group sessions + materials).
Geolocation (GPS/polygon): $10–$25 per farm depending on method and revisit frequency.
Traceability enrollment & ID kits: $5–$15 (cards, tags, admin).
Initial audit share (via coop ICS): $15–$40 allocation per farmer at scale.
CLMRS/HRDD integration: $10–$40 depending on monitoring intensity.
Typical total (year 1): about $60–$150 per farmer; annual recurring $20–$50 (data upkeep, refresher training, re‑audits).

Per cooperative or buying group (setup)

ICS design & procedures: $5k–$20k.
Data/IT (traceability, devices, connectivity): $10k–$50k.
Staffing (field officers, data clerks): $20k–$60k per year (size‑dependent).
External audits & certification fees: $10k–$40k per cycle (scope‑dependent).
CLMRS/HRDD operations: $10k–$40k per year (coverage‑dependent).
Typical setup band: $20k–$100k; recurring $30k–$120k/year.

Resources and Other Reporting

Betteridge’s Law of Headlines
Any headline that ends in a question mark can be answered by the word ‘no.’

Download links for the standards text in English and French are on this page.

Comments? Questions?

If you have questions or want to comment, you can do so during the episode or, if you are a ChocolateLife member, you can add them in the Comments below at any time.

Episode Hashtags and Socials

#ARS1000 #sustainablecocoa
#cocoa #cacao #cacau
#chocolate #chocolat
#specialtychocolate #craftchocolate #beantobar
#PodSaveChoc #LaVidaCocoa #TheChocolateLife

Future Episodes

🗓️

Tuesday November 11th
Topic TBD

🗓️

Friday November 14th
November News and AMA

#PodSaveChocolate and #TheChocolateLifeLIVE Archives

To read an archived post and find the links to watch archived episodes, click on one of the bookmark cards below.