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Digitizing Cocoa Procurement for Licensed Buying Agents (LBAs)

Cocoa supply chains are highly fragmented. Thousands of smallholder farmers sell their produce through intermediaries before the beans reach exporters and processors. 

In this case, a cocoa exporting company relied on multiple Licensed Buying Agents (LBAs) to procure cocoa from approved farmers. LBAs played a critical role in aggregating cocoa beans and delivering them to company warehouses for export. 

However, the company lacked structured visibility into the procurement process. Tracking harvest volumes, aggregation activities, and inventory movement across LBAs was difficult using manual records. 

To address these challenges, the company implemented a digital traceability system through TraceX to manage procurement, batch aggregation, and warehouse transfers. 

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About the Company

The company is a global agricultural commodities player with an extensive sourcing network that enables it to deliver high-quality products tailored to customer needs. Leveraging its strong global footprint, the company works closely with stakeholders across the value chain to ensure sustainable sourcing practices and minimize its carbon footprint. At the core of its operations is a commitment to responsible business prioritizing environmental stewardship, the wellbeing of its workforce, and the development of the communities in which it operates. 

Industry

Agribusiness Traders 

Region

Nigeria 

Use Case

Supply Chain Compliance for EUDR 

Features Used

  • Farmer Onboarding, Registration & Verification  
  • Geo-Mapping with Deforestation Screening 
  • Harvest Tracking & Batch Traceability 
  • Warehouse & Local Buyer Integration 
  • Dashboard & Reporting

The Problem

The company’s procurement model depended heavily on Licensed Buying Agents (LBAs) who aggregated cocoa from multiple farmers. 

While this system enabled large-scale sourcing, it also introduced operational challenges: 

  • Limited visibility into farm-level sourcing 
  • Manual harvest and procurement records 
  • Difficulty tracking batches across aggregation points 
  • Inconsistent inventory reporting across LBAs 
  • Lack of structured data linking farms to export shipments 

Each LBA purchased cocoa beans from farmers and performed procurement activities independently. Harvest and buying records were maintained manually, making it difficult for the company to verify the origin of cocoa beans or track batch movement across the supply chain. 

Without a digital system connecting farmers, LBAs, and warehouses, the company struggled to maintain a clear chain of custody. 

Solution

To address these challenges, the company implemented the TraceX digital traceability, farm management and compliance solutions to digitize procurement workflows across its cocoa supply chain. 

Digitizing Cocoa Procurement Across Licensed Buying Agents, Digitizing Cocoa Procurement for Licensed Buying Agents, Digitizing Cocoa Procurement for LBAs

Onboarding Licensed Buying Agents as Supply Chain Nodes 

Each Licensed Buying Agent (LBA) was onboarded into the platform as a digital supply chain node, enabling structured management of procurement activities. 

Through the platform’s Supplier Network Management capabilities, the company established a centralized registry of LBAs and their operational locations. 

Digitizing Harvest and Buy Activities 

LBAs used the platform to record Harvest and Buy transactions directly from farmers. 

Each transaction captured: 

  • farmer identity 
  • farm location 
  • cocoa quantity purchased 
  • harvest details 

These transactions created digital procurement records connected to the farmers supplying the cocoa. 

The system leveraged Farm & Source Mapping to maintain verified records of farmer and farm information. 

Digital GRN and Inventory Management 

Once the LBA received cocoa beans from farmers, the system generated a Goods Receipt Note (GRN). 

The GRN served as a verified procurement record, confirming the transfer of cocoa from farmers to the LBA. 

After the GRN was completed: 

  • each batch was assigned a unique Batch ID 
  • the cocoa beans were added to the LBA’s inventory 
  • procurement volumes were updated in real time 

This process was supported through Batch & Chain-of-Custody Traceability. 

Batch Aggregation and Processing 

In cocoa procurement, small batches collected from multiple farmers are often combined during processing. 

The platform enabled LBAs to: 

  • aggregate multiple batches 
  • generate a new aggregated Batch ID 
  • maintain traceability records linking the aggregated batch to its original farmer sources 

This ensured that even when beans were aggregated, the origin of the cocoa remained visible. 

Transfer to Company Warehouse 

Once the aggregated batch was prepared, the LBA transferred the cocoa to the company’s warehouse. 

The system recorded: 

  • batch transfer details 
  • shipment quantity 
  • receiving warehouse information 

This enabled the company to maintain a continuous traceability chain from farmer to warehouse. 

Warehouse operations were managed using Warehouse & Processing Traceability. 

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Results

After implementing the digital traceability system, the company achieved significant improvements in its procurement and traceability operations. 

Improved Procurement Visibility 

The company gained real-time visibility into cocoa procurement across all LBAs, including harvest volumes and sourcing regions. 

Structured Batch Traceability 

Each batch of cocoa could be traced from: 

Farmer → LBA → Aggregation → Warehouse 

This significantly improved the integrity of the supply chain. 

Better Inventory Management 

LBAs maintained accurate inventory records, enabling the company to monitor cocoa availability across buying stations. 

Compliance Readiness 

With digital records connecting farmers, batches, and shipments, the company established a strong foundation for traceability and regulatory compliance. 

Operational Efficiency 

Digitizing procurement workflows reduced manual record-keeping and improved coordination between LBAs and company warehouses. 

Key Takeaways

This case demonstrates how digitizing procurement workflows across Licensed Buying Agents can significantly strengthen cocoa supply chain visibility. 

Key lessons include: 

Supply chain intermediaries must be digitally integrated. 
LBAs are critical actors in cocoa procurement and must be included in traceability systems. 

Batch tracking is essential for maintaining origin integrity. 
Digital batch IDs ensure that cocoa beans remain traceable even after aggregation. 

Structured procurement data improves operational decision-making. 
Real-time visibility into harvest and procurement volumes enables better supply planning. 

Traceability must connect farms, intermediaries, and warehouses. 
End-to-end digital workflows are required to maintain supply chain transparency. 


Discover how TraceX helps food and agri businesses digitize supply chains, ensure traceability, and meet sustainability and compliance requirements with confidence. 

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