As you have probably discovered when looking through the chocolate display in various retail and grocery stores, five large players dominate the global chocolate market. Their prevalence allows them to dictate the rhetoric and information synthesized by chocolate consumers on a daily basis. However, the industry is fraught with serious issues that these companies are not taking drastic enough steps to solve. Instead, we must look to other companies, although less well known and smaller-scale, that are forging innovative paths to solve these very real problems, in order to learn from them but also recognize where there is room for improvement. One such company is Taza Chocolate.
Taza Chocolate is a bean to bar chocolate company based in Somerville, Massachusetts. It was founded in 2005 by CEO Alex Whitmore, who was inspired by the stone ground chocolate he had tasted on a trip to Oaxaca, Mexico. He apprenticed under a molinero in Oaxaca in order to learn how to make and work with traditional Mexican stone mills. The result of these unique mills and minimal processing is chocolate with bolder flavors and a grittier consistency than the smoothness that is usually expected from more mainstream companies.
Taza chocolate can be bought online through its website or at Amazon and can be found at retailers such as Whole Foods. According to the Taza Website, “We do things differently. We do things better. We are chocolate pioneers” (Taza Website: Direct Trade). They are pioneers not just because of their unique production process and flavor, but also because of their commitment to addressing the problems that plague the industry today through supply-chain transparency.
Problems: Slavery, Economics and Gender Inequality
In order to critically analyze Taza’s attempted solutions, it is important to first understand the problems, which unfortunately are not new but rather have plagued the industry for centuries. Slavery was an integral part of chocolate’s history, and can be traced back to the 1500’s when the Spanish Encomienda system forced natives in Mesoamerica to grow cocoa and perform labor without pay. The terrible working conditions and disease spread by the Spaniards ravished the native population, and Africans were brought in to replace them. From 1500-1900, between 10 and 15 million enslaved Africans were transported to the Americas and the Caribbean to grow cocoa and other commodity crops. However, even after slavery was abolished, it continued and continues to plague the industry today, mostly in the form of child labor. The International Labour Organization defines child labor as, “all forms of slavery or practices similar to slavery… work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety or morals of children” (ILO). Carol Off found evidence of such child labor in Cote D’Ivoire, with some farmers or their supervisors “working… young people almost to death. The boys had little to eat, slept in bunkhouses that were locked during the night, and were frequently beaten” (Off, 121). A 2009 study by Tulane corroborated Off’s discoveries when it found that more than half a million children in Ghana and Cote D’Ivoire were working in conditions that violated ILO guidelines as well as national laws on minimum wage and minimum hours (Berlan).
Another prevalent problem is the poverty that many cocoa farmers face, particularly in Ghana and Cote D’Ivoire, due to the economics of cocoa farming. Unlike many northern countries where jobs are salaried, wages for day laborers on farms are “neither guaranteed nor generally regulated” (Leissle, 106). Farm owners only receive cash when they sell their crop; thus, they earn 80% of their annual income in the six months of the main growing season, making budgeting for the rest of the year extremely difficult, especially because many inputs are needed at the start of the growing season when farmers are the lowest on cash. This can result in farmers having to take loans or credit, which often have incredibly high interest rates and can be impossible to pay back. The price fluctuations of chocolate also make it difficult to budget, as anything from bad weather to political turmoil can drastically affect chocolate’s price. Lastly, the prices farmers receive are often too low to support their costs. Farmers rarely sell their product directly to the big chocolate companies, instead selling to middlemen who have more negotiating power and can mislead them. Therefore, even if the price paid for chocolate goes up, there is no guarantee that the farmers actually receive this increase. As a result of all of these factors, many farmers struggle to make a living.
Finally, gender inequality is an important problem that is often disregarded, in part because literature has minimized the role of women in chocolate production. Women are thought of as having only light and non-essential tasks, when in reality “female labor play[s] a central role in almost every aspect of cocoa production and sale… statistics undoubtedly underestimate the role of women” (Robertson, 100/104). But the industry is male-dominant, which has negative effects on women. For example, social norms dictate that even if women grow the cocoa, men are the ones that actually sell the crop and receive the cash (Leissle, 122). This means not only that women have no proof they are getting the right amount of money, but also that men of the household have control of the cash, which they often use to pay for needs they find most important before distributing the rest, if any, to women and children. Consequently, even though women contribute greatly to chocolate production, they have very little power.
Taza’s Solution: Direct Trade Model
In order to combat some of these issues, according to Taza it developed, “The first third-party certified direct trade cacao sourcing program, to ensure quality and transparency for all.” (Taza Website: Direct Trade). Because it is the first of its kind, Taza published five guidelines and commitments for its direct trade system that it holds itself accountable to.
- Develop direct relationships with cacao farmers: Taza began by purchasing cocoa from La Red Guaconejo cooperative in the Dominican Republic and shipping it directly to Boston so that there were no middlemen involved. This direct method shrinks, “a commodity chain that is often far-flung, [so that] no step of the trade exchange, from farm to factory, was unknown or untraceable to Taza’s founders” (Leissle, 154). They later expanded their sources to include other producers in the Dominican Republic, Haiti and Ghana, all of which they have personal relationships with. Their single origin bars reflect and appreciate the uniqueness of each location.
- Pay a price premium to cacao producers: Taza commits to paying at least $500 per MT above market price for its beans
- Source the highest quality cacao beans: Taza emphasizes fine flavor beans rather than bulk beans, and directs resources over the long term to assist producers in maintaining high quality output
- Require USDA certified organic cacao: As part of its commitment to source only the best cocoa, Taza requires its producers to be organic certified.
- Publish an annual transparency report: Taza was the first chocolate company ever to publish such a report. It includes the quantity of beans bought from each individual producer, the price Taza pays for these beans, and an intimate look at the individual producers they partner with.
Pros of Taza’s Direct Trade Model
Taza’s direct trade model has improved the economics of farmers while simultaneously promoting transparency in the industry. In paying a large premium (15-20%), Taza ensures that the farmers do not have to worry about not being able to earn enough to survive fluctuations in cocoa price that are entirely outside of their control. This gives farmers much-needed predictability and visibility into future income and improves their standard of living. Furthermore, by publishing the exact prices they buy the seeds at and having all of their numbers and reports independently verified each year by the Quality Certification Services, Taza guarantees integrity and transparency. This is a stark contrast to the rest of the industry; many companies in recent years have introduced “even more ambiguity into the landscapes of its practice” by relying on internal certification and accountability schemes (Leissle, 147). For example, Cadbury recently stopped fair trade certification and instead initiated an in-house sustainability guarantee, which has decreased transparency because, “when a certification scheme is internal to a company, it is more difficult to assess whether they are rigorous and consistently applied. The only option is to take the company’s words that they are” (Leissle, 147-148). The same can be said for craft chocolate companies, who claim to pay several times the world market price for cocoa, yet there is no way for the consumer to verify. In publishing its prices, Taza has set a new standard for the industry, and others, such as Dandelion Chocolate, are following suit.
Taza’s production process also allows for stronger relationships with producers and greater visibility into the company’s supply chain, ensuring no child labor is used to produce its products. In interacting directly with each of their producers, and visiting at least once a year, Taza can guarantee the use of fair labor. Furthermore, in Ghana, where, as discussed earlier, child labor is especially prevalent, Taza has invested in education programs for children and their family. For example, the local producers Taza partners with coordinate workshops in local schools for students and parents to “educate around age-appropriate farm activities… versus dangerous ones” (2018 transparency report). Additionally, Taza has patterned with the non-profit International Cocoa Initiative and its buyer Tony’s Chocolonely, to “proactively address any instances of unsafe work through a combination of family resources and training that rewards transparency and addresses core issues of poverty and lack of education” (2018 transparency report).
Finally, Taza’s single origin bars promote consumer awareness about the countries where it sources its chocolate. Each bar, according to the website, “is minimally processed to let the bold flavors and unique terroir of our Direct Trade Certified beans shout loud and proud” (Taza website: Origin Bars).
By indicating where the chocolate is grown, these single origin bars can help consumers learn that the taste of chocolate differs from place to place, and “invite shoppers to consider the politics and economics of exporting cocoa… By offering a range of chocolate experiences that can change even day by day, single origin chocolate reminds us that there are real people, institutions, and power structures behind every bar” (Leissle, 170). A more informed consumer is likely to make more informed decisions in the future, which can help promote sustainable, ethical chocolate production by creating demand for such products.
How Taza can Improve
Although the Taza model has many strengths, there are areas where it is still lacking. For example, the prices listed in the transparency reports indicate the amount paid per metric ton to producer organizations, but they do not indicate the farm gate price, or how much the individual farmer receives. The farm gate price is distinctive from the price paid to the producers, but by not including both, the reports can mislead the consumer into thinking the listed price is entirely received by the farmers. In only one year, 2016, Taza reported the price that was actually received by farmers, which ranged from 51-76% of the price that was received by producer organizations (2016 transparency report). However, no other transparency report published these numbers, and this percentage could have changed substantially in the years since, especially because a few of the producer organizations they work with have changed. While Taza is exemplary in its transparency, there is room to be even more transparent by consistently publishing the farm gate price in its reports.
Additionally, even though gender inequality is an important problem in cocoa production, Taza does not explicitly address it in its transparency reports. Photos of women farmers have been featured in some of the past reports, and the number of women farmers is included in each report (ranging from 15% to 45% of each producer organization). These inclusions are important in disproving the misconception that women are not involved in cocoa production. However, there is no reference to the struggles women face due to the power dynamics of the industry. Taza had the opportunity to do so in its 2018 report, when it mentions that its partner in El Majagual, Dominican Republic donated his chocolate factory to an association of local women. However, they do not even name the women’s association or delve into what it does, and it seems as though the sale was a decision made independently by the producer with no help or influence from Taza. This is an area where Taza can really improve and learn from organizations such as Kuapa Kokoo, a Ghana based company that sets gender quotas for elected representation at the community and district levels of governance and organizes conscious-raising women’s groups and women’s literacy programs (Leissle, 149). An essential next step for Taza is to acknowledge the unequal distribution of power and wealth due to gender, because according to field work and research by Kristy Leissle and Stephanie Barrientos , “Apart from explicit, well-directed efforts to empower women, most assistance…[goes] directly or indirectly to men” (Leissle, 173).
In summary, Taza Chocolate is changing the way chocolate is sourced, produced and consumed. In addressing the economic problems farmers face, ensuring its producers do not use forced labor, and investing in programs that combat child labor, Taza is making a positive impact on cocoa production. However, there are many areas where Taza can still learn and grow— the transparency reports would be greatly improved if they included farm gate prices, and just as the company has invested in programs to fight against child labor, it should invest in programs that are actively looking to support women. That being said, Taza’s direct trade program is truly innovative, and its transparency reports are challenging other companies to improve their own practices. Although the direct trade model is not feasible for the larger scale companies that dominate the industry, consumers must demand the same level of commitment to ethical production that Taza demonstrates.
Berlan, Amanda. “Social Sustainability in Agriculture: An Anthropological Perspective on Child Labour in Cocoa Production in Ghana.” Journal of Development Studies, vol. 49, no. 8, 2013, pp. 1088–1100.
Leissle, Kristy. Cocoa. Polity Press, 2018.
Off, Carol. Bitter Chocolate: The Dark Side of The World’s Most Seductive Sweet. The New Press, 2006.
Robertson, Emma. Chocolate, Women and Empire: a Social and Cultural History. Manchester University Press, 2013.