*4.3. Commodity Wholesale*

The cocoa is supplied to the production facility by a commodity wholesaler (Company C). Commodity wholesalers buy large quantities of commodities and raw materials from importers or directly from producers and break the deliveries into smaller subquantities. Company C is a medium-sized commodity wholesaler and started as a pure commodity trader, although they now see themselves as "value chain shapers" (IP3).

Both formal and informal GMs are used to coordinate and manage partnerships of Company C. Suppliers from whom goods are purchased regularly are bound by contracts, ensuring delivery quantity and quality. The commodity wholesaler does not use contracts for small purchase quantities and short-term requirements. Since Company C has a very large number of suppliers, they do not audit and control the compliance to sustainability standards at the suppliers' sites on their own due to cost reasons. However, compliance with sustainability standards is verified using certificates. All products of suppliers must have the EU organic logo. At Company C, incoming goods are visually inspected for their organic certification and damage. Additionally, samples are taken for analytical quality control. Here, the products are tested, e.g., for pesticide residues, to verify compliance with organic standards.

The formal coordination instruments are supported by regular, personal exchange and close cooperation: "We have known [ . . . ] them [partners] for a very, very long time. [ . . . ] So with [our] partners we have very close relationships [ . . . ], we make regular visits." (IP3). IP3 states that a trusting relationship between partners improves sustainability. If partners trust each other, the actors fear less that a partner could behave opportunistically and, for example, leave the business relationship. This enables long-term investments in sustainable equipment and facilities, e.g., in a new oil mill, which can produce with less waste and thus increase the ecological (resource conservation), but also the economic sustainability (more output at the same cost).

Additionally, trust in business relationships allows comprehensive knowledge exchanges. If actors believe that their partners will not leave the business relationship, they are willing to invest time and effort in sharing knowledge with partners and giving them training, e.g., on a more sustainable cultivation method, which can improve the ecological (e.g., water conversation), the social (e.g., improved working conditions), and the economical sustainability (e.g., cost reduction).
