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A transition to sustainable cocoa production requires an arrangement for ensuring international cocoa prices that allow farmers to invest in sustainable production methods. Historical experience suggests that such an arrangement should not depend on importing countries and should involve farmer organizations for being effective. In this paper we sketch a possible scheme. Key elements are the introduction of no-clearing zones ; an export tax to finance the elimination of surpluses and the diversification into other crops ; and commercial activities and a periodic redistribution of quota rights to discourage free riding. Effective diversification also requires policies that make domestic food crops sufficiently attractive for farmers.