Dandelion Chocolate: A New Kind of Chocolate Company
Dandelion, a bean to bar, small batch chocolate company based in San Francisco, is a socially conscious company who focuses on making a quality product, that not only benefits the company and consumers, but ensures that the producers and farmers also receive fair treatment. Within the chocolate and cacao market, there are many issues with the chain from the cacao bean to the chocolate bar. For example, farmers receiving little pay, child labor, slavery, high certification costs, etc… Dandelion Chocolate is a company that works to combat these issues within the cacao supply chain by transparency and open communication throughout the process, direct sourcing, and the eradication of certifications on their products. Dandelion Chocolate is not labeled Fair trade, or Organic, but in their own way, they are able to create a brand with quality ingredients and Through these tactics Dandelion has created a meaningful, quality and sustainable brand that has sought to continually learn about and better the cacao supply chain.
By analyzing the Dandelion Sourcing book from 2015 I will highlight the mission of Dandelion Chocolate and how they are focused on not just creating a quality product that sells, but they are interested in “good business practices [that] can foster positive social, environmental, and economic change.” (Gore) Also if we compare Dandelion Chocolate to Big Five Chocolate companies or other Fair Trade or organic companies we are able to see that Dandelion is truly taking an approach that is solving these cacao supply chain issues.
image found from: http://www.shipstation.com/stories/dandelion-chocolate/
Exploiters and the Exploited
Big Five chocolate companies such as Hershey, Mars, and Cadbury buy bulk cacao. This bulk cacao is not sourced directly or through fair trade, meaning there are no social regulations on the farms that they buy their cacao from. Often, there is this notion that the Big Chocolate companies “exploit” West African cacao farmers. For example, someone observing the workers noted, “the villagers seem to make everything for today, living hand to mouth with little remaining for tomorrow… their primary activity here is to produce cocoa for the international market. As such, they earn just enough money from cacao sales to pay for rice and cooking oil. there’s usually nothing left over.” (Off, pg. 5) Furthermore, These companies do not practice transparency in their sourcing and because of this it is likely that they are buying from places who have child labor, slavery and are receiving wages that are hardly survivable on. The farmers are trying to make money by harvesting cacao but this ends up in them exploiting members of their communities and families. For example, another observation noted, “Mack learned of another category of labor…What his informers described sounded a lot like slavery, and what made the stories even more horrifying was that it seemed the slaves were children.” (Off, pg.120) The Big Chocolate companies are buying this cacao and there is no security for these farmers in what they receive from the sales of the cacao they harvest.
image found from:http://www.foodispower.org/slavery-chocolate/
Cacao Sourcing Transparency
Dandelion makes it a goal to have transparency through their whole process of sourcing. This company is clearly making an effort to allow their customers to learn about their process and how they source their cacao. Publishing and uploading their “2015 Dandelion Sourcing Book” is something that opens the conversation for consumers to see their ethics in sourcing. Consumers are able to see where and who Dandelion trades with, also, consumers are able to see how much Dandelion pays for their cacao in comparison to how much other companies pay for cacao. This detail allows the consumer to know what their money is going towards and and ensure that the farmers and producers are being justly compensated. Dandelion says, “We pay as much as two times the world market price (and sometimes more) for the beans, providing a premium between seven and seventeen times greater than the Fair-trade standard of $200 per tonne.” (Gore) This compensation not only gives the consumer peace of mind, it also helps to guarantee a better quality cacao bean. Paying a higher amount for cacao helps to reinforce the farmers and producers incentive for harvesting better beans.
Chocolate makers like us are willing to pay far more than the world market price for high quality beans, which means the price we pay for cacao is completely detached from the volatility of the world market price. Instead, what we pay depends upon the quality of the cacao, what the farmer believes it is with and what our customers will pay for a finished chocolate bar. (Gore)
For Dandelion Chocolate, it is not just about creating a chocolate bar that sells, they are socially conscious and take into account all the people involved in the process. They practice transparency so that every step in the bean to bar supply chain is open and people know what their money is going towards.
Fair Trade Critiques
Fair trade is a great thing. “[Products] that bear [this] logo were made with respect to people and planet. Our rigorous social, environmental and economic standards work to promote safe, health working conditions, and protect the environment…When you choose products without eh Fair Trade label, your day-to-day purchases can improve an entire community.” (Fair Trade USA) The overall mission of Fair Trade is to help these farmers that companies source from receive fair treatment and fair payment. Though these ideals seem as if they will benefit the farmers, there are a few critiques of the Fair Trade industry. Though fair trade aims for fair treatment and fair compensation for all parts of the cacao supply chain, critiques show that farmers still receive little compensation, there is a lack of evidence that fair trade actually helps, and the fair trade certification is very expensive. Dandelion Chocolate works to combat these issues and critiques of Fair Trade by ensuring quality products without the certifications. The certifications are so expensive that it is hard for the farmers to get in the first place, and then they have to be renewed every few years. For example, “in Tanzania, it costs $8,000 just to get the organic certification auditors to visit a farm.” (Gore) Fair Trade also has not been shown to have evidence of results. For example, a report from the Institute of Economic Affairs states, “Even analysts sympathetic to the movement have suggested that only 25 per cent of the premium reaches producers. No study ever produced has shown that the benefit to producers anything like matches the premium paid.” (Wallop). Dandelion’s lack of certifications does not mean that they have a product of lesser quality. They directly source their cacao from farms and visit these farms throughout the year. They believe that “the burden of proof is their responsibility” (Gore) so they go to the farms themselves if they want to see the cacao production ethics and quality. This is a way in which they are able to guarantee quality of the cacao they source while avoiding the steep certification costs.
Image found from: https://www.dandelionchocolate.com/category/industry/
Dandelion: An Environmentally Friendly Company
Dandelion claims to use only two ingredients in their chocolate, “cacao beans and cane sugar.” The cacao beans they source are directly sourced and use ethical treatment of the farmers. As I mentioned, they pay more for their cacao to incentivize ethical practices on the farms they receive it from, as well as better quality cacao. Not only does Dandelion practice good relationships with the people they work with and the farmers they source from, Dandelion practices and fosters a sustainable and nurturing approach to sugar cane farming. Their sugar is bought from “Native Green Cane Project” where “the project aims to replace traditional sugarcane farming methods that ravage natural ecosystems with new methods that return the land closer to it’s natural state.”(Gore) The land is an important part in producing materials for Dandelion’s chocolate and they are making sure that they are using environmentally friendly methods to produce these ingredients. So far, with the “Ecosystem Revitalizing Agriculture” system there is “23x more biodiversity than conventional sugarcane farms… a 20-30% increase in yield per hectare, and the drastic reversal of the operation’s carbon footprint.” (Gore) Dandelion has really made an effort to be transparent in all parts of the cacao supply chain. With this transparency, we are able to see the steps Dandelion Chocolate has taken to fight issues displayed in the cacao supply chain by Big Five Chocolate companies and Fair Trade Certifications.
Image found from: http://www.davidlebovitz.com/2013/02/dandelion-chocolate-san-francisco/
Dandelion is not a perfect company, however they make a really good effort to be better for the environment, farmers, customers and everyone they work with. With their transparency and 2015 Sourcing Report we are able to learn where they get their materials and ingredients from, how much they pay them, the ethics and methods they use, etc… This transparency shows initiative and an earnest attempt to combat the issues with the cacao supply chain.
Gore, Molly. Dandelion Small Batch Chocolate 2015 Sourcing Report. Rep. San Francisco: Dandelion Chocolate, 2015. Web.
Wallop, Harry. “Fair Trade Does Not Help the Poorest, Report Says.” The Telegraph. Telegraph Media Group, 4 Nov. 2010. Web. 02 May 2016.
Off, Carol. Bitter Chocolate: The Dark Side of the World’s Most Seductive Sweet. New York: New, 2008. Print.
Fair Trade USA.” What Is Fair Trade? Fair Trade USA, n.d. Web. 02 May 2016.
Gore, Molly. “Dandelion Chocolate.” Dandelion Chocolate. Dandelion Chocolate, n.d. Web. 02 May 2016.