Tag Archives: cocoa farmers

“Sustainable” Chocolate

What Does it Mean to be Sustainable?

Today, many companies use the term “sustainable” to describe their products or their industry. But what does it mean to be sustainable? The term is used so often that the significance has become ambiguous. According to John C. Long, the former Vice President of Corporate Affairs for Hershey’s and 2008 chairman emeritus of the World Cocoa Foundation (WCF), – he served as a representative for Hershey’s despite his retirement from the company earlier in that year – the definition of sustainability was not just ambiguous for the consumer but for the company, as well. In his article published in Wiley InterScience, From Cocoa to CSR: Finding Sustainability in a Cup of Hot Chocolate, Long states that “sustainability covers such a wide range of areas touching on all aspects of business…[it’s] hard to know where to begin” (Long 316). However, one thing is clear, Long says: “…sustainability is directly related to being able to succeed as individual businesses and industries” (Long 316). Therefore, if sustainability is tied with success, then there should be a definite definition. With the “heightened level of attention” surrounding sustainability, one would think that the definition would be exactly the same across all industries or companies within the same industry; and yet, Long, a former executive of one of the largest chocolate companies in the world, is clear that this is not the case: “…the definitions range from a narrow focus on preserving natural resources and the environment to broader quality-of-life visions encompassing economic opportunity, diversity, and access to health care” (Long 316). In either perspective, sustainability should theoretically lead to the betterment of the world and society. However, this has not been the case for the cocoa industry due to a variety of different issues: lack of understanding of the meaning and requirements to effectively create a plan for a more sustainable industry.

“[it’s] hard to know where to begin” (Long 316)

The Rise in Sustainability “Awareness”

With increased consumer awareness of the concept of sustainability, companies such as Hershey Co. were quick to react and offer a plan. This concept of “‘doing well by doing good’” was quickly adopted into “mainstream business practice” (Long 315). By 2008, a survey found that “47.7 percent of companies considered sustainability and corporate responsibility an important driver of innovation” (Bonn and Fisher 5). This means that nearly 50% of companies – not specifically in the cocoa industry – found sustainability to be “an important driver of innovation” and yet there was not a definition that thoroughly explained what this concept meant in relation to industries.

According to Dr. Ingrid Bonn – Associate Professor of Strategy at the School of Business, Bond University – and Dr. Jose Fisher – Associate Professor of Management at the School of Business, University of New England, Australia –  “becoming a sustainable organization is a long and arduous process” that requires “continuous capability building and management attention and the need to integrate all sustainability initiatives so they they form a cohesive whole” (Bonn and Fisher 12). However, they also recognize that a large part in being effectively sustainable comes from the true understanding that there are three components: environmental, economic and social sustainability. This highly contrasts from Long’s claim that sustainability is a “focus on preserving natural resources” or “improving quality-of-life” (Long 316). This highlights the problem, primarily within the cocoa industry, which focuses on just one aspect of sustainability, rather than all three. Therefore, companies such as Hershey Co. cannot claim to be fully sustainable if their focus lies solely in one of the three pillars of sustainability – as shown in Figure 1 above.

Sustainability in the Cacao Industry

With the clarification as to what it means to be sustainable, it is important to analyze how this is evident within a specific industry – the cacao industry. In 2008, Long blamed the lack of a unanimous definition across the cocoa industry on the lack of effective plans in countries such as Ghana and the Ivory Coast. Despite this awareness of the problem, this issue has continued throughout the years. In a short documentary by Al Jazerra English – as found on Youtube – reporter Nazanine Moshiri travels to the Ivory Coast in 2011 to highlight the conditions of the cocoa farmers. Her interview with some of the farmers reveals that even on a fair-trade certified farm, the government should regulate and fix the price of cocoa to be $1.50 per kilogram. However, buyers usually show no respect for this price and often pay only a little over a dollar per kilogram (Al Jazerra English). Because of this, farmers are not making a profit and are forced to abandon their farms or plant other supplies, which then leads to an increase in the price of cacao. This would then impact the consumer who would have to pay more for the luxury of their chocolate bar. As a result, companies have created a series of plans to improve the conditions within the cocoa industry to ensure that the price of chocolate remains low for their consumer and improves the livelihood of farmers. (For more information, please refer to the video below.)

The Cocoa Farmer

Education and Resources

In order to come up with a plan, companies needed to follow the same path as Nazanine Moshiri did as a reporter: investigate the conditions on the farms. Most of these investigations were conducted in West Africa, where “70 percent of cocoa is produced on small family farms” (Houston and Wryer). In regions such as Ghana or the Ivory Coast, farmers have a “limited access to resources” and a “multitude of social issues, such as low levels of adult literacy…and lack of quality education” (Houston and Wryer). These issues worsen when the price of cacao lowers or when farmers have “low yields attributed to pests, aging trees, and diseases that attack the trees” (Houston and Wryer). While pesticides and fertilizer could increase the yields of cacao, thus increasing the amount the cacao farmer gets paid – as their income stems from their cacao yield – farmers are unfamiliar with “modern farming techniques” (Houston and Wryer). Despite the possibility of increasing resources for farmers – which could create an environmentally sustainable farm – the “low levels of adult literacy” makes it hard for cocoa farmers to effectively learn how to use these supplies or “modern farming techniques” (Houston and Wryer). This proves that without a focus on social sustainability to improve the conditions and education of the cocoa farmers, there cannot be environmental or economic sustainability.

“Multitude of social issues, such as low levels of adult literacy…and lack of quality education” (Houston and Wryer)

In order to come up with a plan, companies needed to follow the same path as Nazanine Moshiri did as a reporter: investigate the conditions on the farms. Most of these investigations were conducted in West Africa, where “70 percent of cocoa is produced on small family farms” (Houston and Wryer). In regions such as Ghana or the Ivory Coast, farmers have a “limited access to resources” and a “multitude of social issues, such as low levels of adult literacy…and lack of quality education” (Houston and Wryer). These issues worsen when the price of cacao lowers or when farmers have “low yields attributed to pests, aging trees, and diseases that attack the trees” (Houston and Wryer).

Simplistic Solutions

Despite the complexity of this issue, some of the biggest companies in the chocolate industry create simplistic solutions. This mostly stems from the lack of a concise definition among these organizations and a lack of focus on all three components (environmental, economic, and social) that make up sustainability. Kerstin Roos critiques this by highlighting the supposed solution that “farmers need only increase productivity” (Roos 5). She points out that “poverty has many dimensions” (Roos 5). T

The reality is that a solution that “increase[s] productivity” cannot target “chronic poverty, child labor, soil degradation and deforestation” without analyzing the root causes of each issue. She continues her argument by stating that increasing productivity is not enough and “development based on growth actually creates more inequalities” (Roos 7). This perception that growth, or productivity, can reduce poverty is reflects a misunderstanding that  “all people benefit when the economy grows” (Roos 5). Therefore, simple stating that sustainability is achieved through increasing productivity reflects a genuine lack of understanding; in fact, it also reflects a lack of planning that will only impact the top layer of a deep rooted issue.

Rapid Solutions

To continue this point, it is important to point out that the simple solution of increasing productivity not only stems from a lack of understanding as to what sustainability needs and requires, but also from a lack of organization and planning. In other words, companies were quick to respond to the “heightened level of attention” surrounding sustainability with a simplified plan that was rather ambiguous in nature (Long 316). The simplified response was a direct result of a company’s rapid timing to provide a solution to target deep issues. John C. Long also criticizes this by highlighting that solutions for problems as big as child labor, poverty, and low yields of cacao do not result from quick-timed responses: “It doesn’t happen by itself, and it doesn’t happen overnight” (Long 317). Long, having been an employee of Hershey Co., recognizes that companies such as Hershey Co. have been guilty of simplifying a large scale problem. However, he is also quick to point out this is issue is larger than just one company. In fact, even if one company recognizes all three pillars of sustainability and takes the time to investigate and create a thorough plan, “it does not happen by itself” (Long 317). In a billion dollar industry, “corporations cannot address the challenges of ensuring a truly sustainable supply chain without working in partnership within their particular industry” (Long 317). In other words, in order to create a sustainable industry, there needs to be systematic change that occurs not only within the governments of the countries in which the cacao farms are located, but within the companies themselves.

“It doesn’t happen by itself, and it doesn’t happen overnight” (Long 317)

Current Conditions and Failed Plans

Without this systematic change that spreads through the entire industry, sustainability efforts will continue to fail. In a news article for Candy Industry, a magazine that provides “in-depth news analysis and comprehensive profiles” of the candy industry, Crystal Lindell – Editor for Candy Industry – provides a detailed report on the failed efforts within the chocolate industry. Her piece titled, Cocoa Sustainability: Goals shift to 2025, she presents coverage of the 2018 Cocoa Barometer – “a biennial review of the state of sustainability in the cocoa sector” (Lindell). Lindell selects certain portions of the report that she deems important to analyze including the following:

  • “More than ninety percent of West Africa’s original forests are gone” (Lindell)
  • “Child labor remains at very high levels in the cocoa sector, with an estimated 2.1 million children working in cocoa fields in the Ivory Coast and Ghana alone” (Lindell)

Without this systematic change that spreads through the entire industry, sustainability efforts will continue to fail. In a news article for Candy Industry, a magazine that provides “in-depth news analysis and comprehensive profiles” of the candy industry, Crystal Lindell – Editor for Candy Industry – provides a detailed report on the failed efforts within the chocolate industry. Her piece titled, Cocoa Sustainability: Goals shift to 2025, she presents coverage of the 2018 Cocoa Barometer – “a biennial review of the state of sustainability in the cocoa sector” (Lindell). Lindell selects certain portions of the report that she deems important to analyze including the following:

She raises criticism by making evident that “…efforts in the cocoa industry to improve the lives of farmers…are having little impact” (Lindell). In fact, the “proposed solutions do not even come close to addressing the scale of the problem” (Lindell). This is a direct consequence of the lack of planning and understanding surrounding sustainability. The irony within this fact stems from the knowledge that companies have the investigative research and information to make a change- as proven by Long’s statements in 2008. The fact that it has been over ten years since Long released his journal on sustainability and the need for change within the industry, reflects the ineffectiveness of the efforts made by the companies – even Hershey Co.

“…companies have the investigative research and information to make a change”

New Proposal, New Solutions

That being said, there are solutions that – if applied to the entire industry – can make an impact. Lindell continues in her coverage by highlighting the goals that should be achieved by 2025 that starts with an increase in “urgency and ambition to reflect the scale of the problems” (Lindell). By simplifying solutions down to measuring productivity, the industry will not be fixed. More awareness and a grasp on the meaning of sustainability could bring an end to an issue that has plagued the cocoa industry for decades. Because of this Lindell recognizes the complexity of issue at hand: “…sustainable cocoa is not an easy fix” (Lindell). The fact that this issue is difficult, however, should not deter companies; rather, the urgency for sustainability should serve as an incentive – just as the companies claimed productivity should incentivize the cocoa farmers.

Consumer Awareness

Despite the failed efforts to achieve sustainability, one thing is clear: the consumer has a direct impact on the industry. While some may read this and choose to boycott chocolate all-together, this does not have to the case. In fact, this may hurt the industry even more and take away the small income the cacao farmers make. This does mean that consumers should be more aware of where their chocolate comes from and what the labels on chocolate bars mean; as consumers, we should also be aware of what it means to be sustainable and whether or not a company knows and reflects this policy.

With an industry with expected sales “to reach $225 billion by 2025,” the need for systemic change is necessary more today than ever before (Roos 32). The increase in profits are not reflected in the incomes of cocoa farmers, who make up “5 million households that farm cocoa” and rely on it for “60 to 90 percent of their income” (Houston and Wryer). In 2017 alone, the prices in cacao dropped and farmers saw “incomes drop by 30-40%” (Roos 3). All of these numbers reflect just how unequal the playing field is between the industry and big companies in relation to the cacao farmers.

Chocolate is not just a guilty pleasure in regards to health, as some might think, but in the impact it holds. As consumers, we can choose to be aware of our own impact on the “economies of developing countries” and advocate for more to be done. Current sustainability plans have not abolished child labor, unstable incomes, environmental diseases, and more. This should be enough incentive to make a change for the “better livelihoods at the farm level, increased resources and investment at the national level, and a safer, more secure environment for smallholder farmers that supply the bulk of coca production for the world’s consumers” (Houston and Wryer). As consumers, we are directly involved in the efforts made for sustainability. The problem cannot be simplified, but the first step comes in adopting a uniform definition for sustainability that recognizes the three pillars: economic, environmental, social. By taking this definition as using it as the foundation to take the time and create a thorough plan, there can finally be a sustainable cocoa industry. Until then, a true sustainable chocolate bar or company simply does not exist.

Sources

Scholarly Articles

Bonn, Ingrid, and Josie Fisher. “Sustainability: the Missing Ingredient in Strategy.” The Journal of Business Strategy, vol. 32, no. 1, 2011, pp. 5–14.

Houston, Holly, and Terry Wyer. “Why Sustainable Cocoa Farming Matters for Rural Development.” Why Sustainable Cocoa Farming Matters for Rural Development | Center for Strategic and International Studies, Center for Strategic and International Studies, 6 Sept. 2012, http://www.csis.org/analysis/why-sustainable-cocoa-farming-matters-rural-development.

Long, J. C. (2008). From cocoa to CSR: Finding sustainability in a cup of hot chocolate. Thunderbird International Business Review, 50(5), 315. doi:http://dx.doi.org.ezp-prod1.hul.harvard.edu/10.1002/tie.20215

Roos, Kerstin, “Cacao Together: A Model for True Sustainability in the Chocolate Industry” (2018). Capstone Collection. 3138. https://digitalcollections.sit.edu/capstones/3138

Multimedia Sources

News Articles

English, Al Jazeera. “Ivory Coast’s Bittersweet Cocoa Industry.” YouTube, YouTube, 13 Dec. 2011, http://www.youtube.com/watch?v=qA-dm0TSmpk.

Lindell, Crystal. “Cocoa Sustainability: Goals Shift to 2025; Cocoa Suppliers and Manufacturers Made Big Promises for Sustainability Efforts That Mostly Come Due in 2020–but as the Deadline Gets Closer Many Are Now Looking to 2025.” Candy Industry, vol. 183, no. 11, 2018, p. 18.

Images

Figure 1: KTucker. “Nested Sustainability.” Wikimedia Commons, Wikipedia, 19 Oct. 2011, commons.wikimedia.org/wiki/File:Nested_sustainability-v2.svg.

Figure 2: “Sustainable Cacao Farming.” Chocolate Connoisseur, Google, http://www.chocolateconnoisseurmag.com/corruption-in-the-chocolate-chain-deadly-deforestation-and-cacao-part-two/sustainable-cacao-farming/.

Figure 3: Kirubi, Mwangi. “Cocoa Farmer Ghana.” Flickr, 25 May 2017, flic.kr/p/2ahtX3d.

Figure 4: “Cocoa farming holding collection of fermented cacao beans in both hands while surrounded by cacao beans in the background.” UVM Bored, Google, https://uvmbored.com/event/presentation-the-cocoa-campaign/

Figure 5: Neptune, Bobby. “Turning Cocoa Beans into Chocolate.” Flickr, 4 Dec. 2013, https://flic.kr/p/jy7EfA

The Sticky and Complicated Future of Chocolate

the modern mocha is a bittersweet concoction of imperialism, genocide, invention, and consumerism served with whipped cream on top.”[1] ― Sarah Vowell

Humorist Sarah Vowell captures much of the history of chocolate (and coffee) in this little quip. However, the history of chocolate is long and its social, economic, and political implications are vast. Putting the positive impacts of invention aside, the negative impacts of imperialism and consumerism more than linger. They have resulted in gross economic inequities and lasting environmental and social damage, particularly in the production end of the cocoa supply chain. It’s going to take the force of consumerism and capitalism to right these inequalities and bring about sustainability.

Approximately 70% of the world’s cocoa is produced in West Africa by small farms spread out across the area. In the 1980s cocoa farmers received approximately 16% of the chocolate profits, today this percentage has been greatly reduced to 3%.[2] Cocoa farmers are not organized and have little bargaining power against more organized buyers.

Profit shared on cocoa supply chain
Figure 1: Farmers share of chocolate profits is small and has been in decline since the 1980s when global cacao prices were regulated. In the 1980s farmers were receiving around 16% of the chocolate profits. Martin, Carla D. “Introduction.’” Chocolate, Culture, and the Politics of Food. Harvard Extension School: Cambridge, MA. 24 Jan. 2018. Class Lecture. [3]
The 2018 Cocoa Barometer highlights the many challenges for cacao farmers, including volatile pricing. From September 2016 – February 2017, farmers experienced a 30%-40% decline in income (Ghana farmers were protected by this price drop through government subsidies). Although prices are on the rise again, the overall trend the past 60 years is a decline in prices (see figure 2). With farmers having little, to no, protection from their governments they are hardest hit by market fluctuations, while others on the value chain will see an increase of their profit margins, even if only temporary.[4]

2018 Cocoa Barometer Long-term cocoa price trends
Figure 2: The average production of Ivorian cocoa in the seasons 2010/11, 2011/12, 2012/13, 2013/14, 2014/15 and 2015/16 was around 1,600,000 metric tonnes (mt). Cocoa production in 2016/17 and 1017/18 is around 2,000,000 mt, an increase of about 400,000 mt. (ICCO Quarterly Bulletins) The overproduction in 2016/17 was around 300,000 metric tonnes, according to the ICCO Quarterly Bulletin, Volume XLIV no 1, page 50, table 1.[5] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018.http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf
Farmers in West Africa make well below a living wage of $2.51 per day, averaging $0.78 per day (FairTrade).[6] The Cocoa Barometer asserts that the price drops are directly related to improved production due to new farming areas created from deforestation. More than 90% of West Africa’s original forests are gone.

An estimated 2.1 million children work in West African cocoa fields. Structural issues such as poverty, lack of schools, and infrastructure also contribute to the high levels of child labor.[7] Efforts in the past few decades to end child labor, preserve the environment, and to balance these inequities have been challenging and difficult to measure. Currently, third party certification bodies have been the only levers toward implementing and measuring sustainability efforts as well as signals to consumers as to where, and how, their chocolate products are sourced.

Major Certification Bodies
Three major certification bodies associated with cocoa. Note Utz and Rainforest Alliance has merged and will announce new standards in late 2019 for the New Rainforest Alliance.

The three main certification entities are Fairtrade, Utz and the Rainforest Alliance. Fairtrade Standards are designed to support the sustainable development of small producer organizations and agricultural workers in the poorest countries in the world.[8] Similarly, Utz certification was created to show consumers that products were sustainably sourced. Rainforest Alliance certification meant farmers met rigorous environmental and social standards.[9] In January 2018, Utz merged with the Rainforest Alliance. The New Rainforest Alliance plans to publish a singular program at the end of 2019.[10]

Certification and bean-to-bar efforts in the specialty chocolate market have many success stories, but compared to the global consumption of chocolate, these efforts have only made a dent.[11] The Fine Cacao and Chocolate Institute (FCCI) reports, with caveats intended to illustrated the challenges of obtaining this data, that there are 481 specialty chocolate makers and manufacturers worldwide that represent approximately 6% of the annual global production of cacao.

International Cocoa Organization, ICCO, ultrapremium cacao, fine cacao, bulk, certified
Figure 3: Ultrapremium fine and Fine cacao comprises 246,000 tonnes (6%) of the 4,031,200 tonnes of cacao produced annually (ICCO 2015). [12]
The FCCI defines this market segment as those chocolate makers and manufacturers that choose to purchase specialty cacao at a premium price for purposes of taste quality and/or sustainability reasons.[13] Within this small group, sustainability is but a factor in paying the price premium, but not necessarily a primary factor. In order for sustainability initiatives to have any meaningful impact to cocoa farmers the major chocolate manufacturers need to take the lead and invest in best practices throughout their supply chain that address the environmental, social, and economic challenges their farmers face.

Cocoa Barometer, Certified Cocoa, 2017, Mondelez International, Nestle, Mars, Hersheys, Ferrero, Lindt und Sprungli
Figure 4. Data kindly provided by the companies. Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

Recent Commitments by the Majors / Certifications & Goals

Mondelēz International (a subsidiary of Kraft)
Chocolate Brands: Cadbury, Alpen Gold, Côte d’Or, Toblerone, etc.
Certification provided by FLOCERT through a private labeling partnership.

In 2012 Mondelēz International invested $400 million to create its Cocoa Life program. The program plans to empower 200,000 cocoa farmers and one million community members by 2022. In April 2018 Mondelēz International reported that they have reached 120,500 cocoa farmers, in a variety of programs and they reached 35% certified cocoa.[14]

Mondelēz  International, Cocoa for Life, 2017 Progress
Figure 5: Cocoa Life infographic showing Mondelēz 2017 Progress in Numbers. Includes increases in sustainably sourced cocoa and reach to farmers and communities from previous year.[15]
Cocoa Life is tied to the UN Sustainability Development Goals (SDGs), with an emphasis on Goals 1 (no poverty), among others. Cocoa Life has partnered with local governments and NGOs to build community-centric Child Labor Monitoring and Remediation Systems (CLMRS), which educate farming communities on the dangers of child labor, identify children at risk, and remediate cases with its local partners. Cocoa Life CLMRS programs have started in Ghana and continue to increase. Roll out of CLMRS in Côte d’Ivoire will begin in 2018. Nestlé has also implemented CLMRS program into its sustainability programs.[16]

Mondelēz, CLMRS, 2017
Figure 6: Child Labor Monitoring and Remediation Systems (CLMRS) deployed by Mondelēz International in 2017 with plans to ramp up in 2018.[17] Mondelēz International. Cocoa Life 2017 Progress Report: From Cocoa Farmers to Consumers Connection Both Ends of the Supply Chain. P. 21. April 2018. Web. April 2018. https://www.cocoalife.org/~/media/CocoaLife/en/download/article/Cocoa_Life_Progress_Report_2017.pdf

Nestlé
Chocolate Brands: Smarties, Nestlé Crunch, Butterfinger, KitKat, etc.
Certifications: Utz and Fairtrade

In their detailed, first report (2017), co-authored with the International Cocoa Initiative (ICI), Nestlé asserts that certification is not enough and that additional support for the farmer is needed. In fact, Nestlé asserts that certification drove the issue of child labor “underground” as farmers would hide any child laborers when inspectors came around.[18] While Mondelēz set up CLMRS in Ghana, Nestlé set up its CLMRS in Côte d’Ivoire and report a 51% reduction of child labor in a recent sample of 1,056 children over a two-year period. [19]

Nestle, Child Labour, Child Labor, 2017 Corporate Responsibility Report
Figure 7: Nestlé targets child labor by its Child Labor and Monitor Remediation Systems (CLMRS) in Côte d’Ivoire. Nestlé hopes to scale the successful parts of the program to meet the goals of its Cocoa Plan.[20]
Nestlé is also investing in Community Liaison People (CLPs) to educate the community of the dangers of child labor. They are targeting women and mothers as they are more likely to invest their income and education into their family. The CLPs are local young people who are paid to train and the cost of the CLPs are split between Nestlé and the farmer. Remediation is highly individualized, but these activities are ones Nestlé continues to invest.[21] Nestlé hopes to scale their more successful initiatives to meet the goals of its Cocoa Plan, which is set to reach 57% cocoa certification by the end of 2020.

Nestle, CLMRS, Child Labour Monitoring and Remediation System, ICI, International Cocoa Initiative
Figure 8: An overview of how Nestlé’s Childe Labour Monitoring and Remediation System (CLMRS) works by engaging the community, assigning monitors, monitoring, reporting, validation, analysis, recommends remediation, remediation carried out by partners, monitoring continues ensure remediation is carried out.[22]  Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.23 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf
Nestle, Cocoa Plan, CLMRS, Certified Cocoa
Figure 9: Infographic on Nestlé Cocoa Plan Challenges and Ambitions in CLMRS program reach and tonnes of certified cocoa.[23] Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.49 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf

Ferrero
Chocolate Brands: Ferrero Pralines, Nutella, Kinder Chocolate
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.[24]

According to its 2016 Social Responsibility Report Ferrero has made a commitment to 100% certified cacao by 2020 and 75% by the end of 2018.[25]

Ferrero, Sustainability Report, Certified Cocoa
Figure 10: Ferrero touts its success toward reaching its certification goals.[26] Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 170 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf
In its April 2018 Cocoa Barometer reports Ferrero is 70% certified (figure 4), and by its own reporting, on track to meet its goal of 75% cocoa certification (figure 10).

Ferrero reports partnerships with cacao cooperative ECOOKIM, the largest in Côte d’Ivoire, which takes part in the Fairtrade Africa program “It Takes a Village to Protect a Child.” Similar to CLMRS, the program establishes a Child Labor Committee to raise awareness about child labor, create child protection policy, and monitor activity at the community level. Ferrero reports that 9,413 children benefitted from this program. [27]

Ferrero also works with Save the Children to work toward ending child labor. It reports 1.2 million children are forced to work in hazardous conditions, however, Ferrero has set relatively modest goals of reaching 500 children, 7,500 members of 10 communities, and 100 representatives of local institutions.[28]

Ferrero, Save the Children, Cocoa, Sustainability, Community Development
Figure 11: Ferrero reports modest results on in their efforts to address child labor.[29]   Source: Save the Children, December 2016 – Protection des enfants vulnérables dans les communautés productrices de cacao dans le département de Soubré en Côte d’Ivoire – Ajournement pour Ferrero. Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 182 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf
In January Ferrero announced it planned to acquire Nestlé’s U.S. confectionary business for $2.8 billion in cash making Ferrero the third largest confectionary company in the U.S.[30] It is anticipated that Ferrero will realign their sustainability goals after the acquisition of Nestlé, but their goals are currently similar.

The Hershey Company
Popular Chocolate Brands: Hershey’s Chocolate Bar, Cocoa, Kisses, and Baking chocolates, Kit Kat, Almond Joy, Mounds, Reese’s, York.
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.[31]

Hershey, Open source map, cocoa farms, sustainability, transparency
Figure 12: Hershey Source Map for Reese’s Peanut Butter Cups. Pictured above is a zoomed in version of W. Africa. Users can zoom in and view the name of Cocoa Coop, educational location, or an area they obtain cocoa. The map also shows locations around the world for ingredients such as milk and sugar, plus other sources of chocolate in South American. Hershey also has a source map for its Hershey’s Milk Chocolate with Almond Bars. [32] https://open.sourcemap.com/maps/589e10c1e4bac0b357bc3d5f
Hershey, Sustainablity Goal
Figure 13: Hershey reports its on track to reach its goal of 100% certified cocoa by 2020.[37]   The Hershey Company. 2016 Corporate Social Responsibility Report. 2017. Web. April 30, 2018. p. 27. https://www.thehersheycompany.com/content/dam/corporate-us/documents/csr-reports/2016-hershey-csr-report.pdf
In its 2016 Corporate Social Responsibility Report, The Hershey Company highlights progress in their Learn to Grow agriculture and empowerment program, serving 48,300 farmers in West Africa.[33] The report also highlights its Energize Learning program, which provides Vivi energy bars to students improving overall nutrition. The program is a partnership with the Ghana School Feeding Program and Project Peanut Butter and 50,000 kids in Ghana receive 50,000 Vivi bars every day.[34] Hershey also partnered with The World Cocoa Foundation’s (WCF) Climate Smart Cocoa Program to address climate change impacts to cocoa growing regions. The partnership will pilot a series of programs to develop “climate-smart” best practices to inform the Learn to Grow curriculum and through Hershey’s CocoaLink program knowledge sharing between farmers will be allowed via low-cost mobile technology.[35] Hershey’s report indicates that it is on schedule to reach its 100% certified goal by 2020.[36] In April 2018 the Cocoa Baramoter reports Hershey reached 75% (see figure 4). Also in April 2018, Hershey announced the creation of its Cocoa for Good sustainability programs

Beyond certification, Cocoa for Good seeks to address the most pressing issues facing cocoa-growing communities. The strategy is to target four key areas: increase family access to good nutrition, elimination of child labor and increase youth access to education opportunities, increase household incomes for women and men, zero deforestation and increased agroforestry. The announcement came with a $500 million commitment by 2030 and like Mondelēz International and Mars, aligns its strategy to contribute to the goals of the United Nations Sustainable Development Goals.[38]

Mars
Chocolate Brands include: M&M, Snickers, Twix, Dove, Milky Way, etc.
Certification is conducted by Utz, Fairtrade, and Rainforest Alliance.

In September of 2017, Mars announced its Sustainable in a Generation Plan, with a pledge to invest $1 billion over the next few years to address threats such as climate change, poverty in its value chain, and scarcity of resources.[39] This is across all their raw products, not just cocoa. Oxfam will serve as an advisor to their Farmer Income Lab, which aligns with the United Nations Sustainability Development Goal 1 (no poverty). The Farmer Income Lab will seek to create solutions through research for farmers working in Mars’ supply chain in developing countries.[40] Other actions include improving cocoa farming methods, pests and disease prevention, and unlocking the cocoa genome.[41] Engagement with others actors in the cocoa industry is also key, such as the World Cocoa Foundation and CocoaAction. Mars’ Chief Sustainability & Health and Wellbeing Officer, Barry Parkin, also serves as Chairman of World Cocoa Foundation.

Mars, Cocoa Sustainability
Figure 14: Mars identifies that 5 million cocoa farmers are impacted, but focuses mainly on addressing technology issues in farmer in a belief it will fix the social challenges that farmers face, such as a extreme poverty, child labor, and infrastructure concerns included in other sustainability plans.[47]
Mars may lay claim as the first major chocolate company to commit to 100% certified chocolate by 2020, but its progress has lagged, reporting 50% of their cocoa being certified in 2016[42] and the same percentage being reported by the cocoa barometer in 2018 (figure 4). During this same time frame Ferrero and Hershey have demonstrated increases in certification of cocoa reporting 70% and 75% certificated cocoa, respectively (figure 4).[43] Their website lacks a corporate social responsibility report and the information available on their site appears to be written in 2016, except for recent press releases and Income Position Statement.[44] For example Mars’ claim to be the only major manufacturer to work with all three major certification organizations Utz, Rainforest Alliance, and Fairtrade International is outdated.[45] Hershey and Ferrero include these bodies in their 2016 sustainability reports.

Until the recent announcement of Sustainable in a Generation Plan, Mars’ approach, as described on their website, leans more toward improving farmer yield through technology (fertilizer, farming techniques, mapping the cacao genome) than increasing living wages and address child labor. A press release by Frank Mars in April 2018 urges collaborative scientific approach and extolls their work on breeding higher yield cocoa plants for improving farmer incomes.[46] However, higher yields do not always improve farmer incomes. As previously mentioned, the recent Cocoa Barometer report suggests that higher production results in driving down price, thus less income for farmers. Perhaps Mars’ real progress is tied to the progress of the World Cocoa Foundation.

World Cocoa Foundation (WCF) and CocoaAction

CocoaAction is a voluntary industry-wide organization that aligns the world’s leading cocoa and chocolate companies, cocoa producing governments, and key stakeholders on regional priority issues in cocoa sustainability run by the World Cocoa Foundation (WCF). The WCF member companies committed to CocoaAction include Mondelēz International, Nestlé, Ferrero, The Hershey Company, Mars, Incorporated, among others.[48] In November of 2017 a Framework of Action was announced by the WCF with the governments of Côte d’Ivoire and Ghana and major chocolate and cocoa companies to end deforestation, restore forest areas, and accelerate investment in long-term sustainable production of cocoa, and the development and capacity-building of farmers’ organizations and farmer’s income. Commitments also include participation of policy creation by farmers and extensive monitoring and reporting. The Framework of Action involves governments and companies that represent 80% of the global cocoa production and usage.[49] If implemented correctly, these commitments should go a long way in repairing the deforestation in West Africa. 

The Future of Chocolate

These efforts are welcome and it is promising that the majors can successfully  collaborate with governments, NGOs, and each other in the important effort to secure the future of chocolate and those that produce it. It is also encouraging to see the major manufacturers release sustainability reports, however, as barometer.org reports, many of their commitments fall well short compared to the actual scope of the problem. The commitment to reach 400,000 children by 2020 would only impact 18% of children in need (figure 15). Similarly meeting commitments to help farmers in CocoaAction would only reach 15% of farmers in need (figure 15). Regarding living income, farmers are only making $0.78 per day, 31% of the living wage of $2.51 per day (figure 15). The Cocoa Barometer report stresses that a living wage, among other factors, is a major component that these initiatives must include in their sustainability initiatives. From available data, all reports aspire to improve farmer income, either by improving productivity or identifying additional income generating activities. However, these plans do not set a living wage as a goal. As mentioned earlier in this article more production doesn’t always result in more income.

Cocoa Barometer, Scale of solutions vs problem, Cocoa Sustainability, CLMRS, CocoaAction, Cocoa Farmer
Figure 15: Scale of solutions vs. scope of the problem. The data for this infographic was publicly available in the case of CocoaAction and Fairtrade. The International Cocoa Initiative graciously provided their data. The authors of the Barometer do not wish to imply that these organisations are doing an insufficient job, but simply that the scale of the interventions chosen by the sector as a whole are dwarfed by the size of the challenges.[50]   Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf
The future of chocolate depends on the fate of cocoa farmers and their fate relies on untangling a mess of social and economic issues caused by imperialism, and exacerbated by free market capitalism and consumerism. The goals set forth in these reports are generally headed in the right direction, but their success is dependent on their ability to make their initiatives successful, then scale up on that success. Accountability and transparency among the industry and at the government level is also paramount to measure the effects of these initiatives. Consumers also have a role in making responsible purchases and applying pressure on corporations and governments to minimize inequality in the supply chain and certification plays an important role. If farmers continue to be marginalized, then there will be little incentive for a younger generation of farmers to take up the trade and chocolate may become a rare treat indeed.

 

Works Cited:

[1] Vowell, Sarah. The Partly Cloudy Patriot. Simon & Schuster. New York, New York. October 2002. p. 42

[2] Martin, Carla D. “Introduction.” Chocolate, Culture, and the Politics of Food. Harvard Extension School: Cambridge, MA. 24 Jan. 2018. Class Lecture.

[3] Ibid.

[4] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. Web. p. 11. April 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[5] Ibid. p. 52.

[6] Ibid. p. 6.

[7] Ibid. p. 3.

[8] Fairtrade. Aims of Fairtrade Standards. Web. May 8, 2018. https://www.fairtrade.net/standards/aims-of-fairtrade-standards.html

[9] The Rainforest Alliance. What Our Seal Means. Web. May 8, 2018. https://www.rainforest-alliance.org/

[10] Utz. Joining Forces: Utz and the Rainforest Alliance. April 24, 2018. Web. May 9, 2018. https://utz.org/merger/#QA_merger

[11] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. p. 6. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[12] Martin, Carla. “Sizing the craft chocolate market.” Fine Cacao and Chocolate Institute (blog). August 31. 2017. Web. April 25, 2018. https://chocolateinstitute.org/blog/sizing-the-craft-chocolate-market/.

[13] Ibid.

[14] Mondelēz International. Cocoa Life 2017 Progress Report: From Cocoa Farmers to Consumers Connection Both Ends of the Supply Chain. P. 2. April 2018. Web. April 2018. https://www.cocoalife.org/~/media/CocoaLife/en/download/article/Cocoa_Life_Progress_Report_2017.pdf

[15] Ibid. p. 5

[16] Ibid. p. 21

[17] Ibid. p. 21

[18] Nestlé. Nestlé Cocoa Plan Tackling Child Labour 2017 Report. Web. P.24 April 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf

[19] Ibid. p. 22

[20] Nestlé. Introducing our first report on tackling child labour in cocoa. Web. April 2018. https://www.nestlecocoaplanreport.com/

[21] Ibid. 37

[22] Ibid. p. 23

[23] Ibid. p. 49

[24] Ferrero. Sharing Values to Create Value Corporate Social Responsibilty Report 2016. Ferrero. Web. P. 171 https://s3-eu-west-1.amazonaws.com/ferrero-static/globalcms/documenti/2807.pdf

[25] Ibid. p. 170

[26] Ibid. p. 170

[27] Ibid. 175

[28] Ibid. p. 181

[29] Ibid. 182

[30] Ferrero. Ferrero to Acquire Nestlé’s U.S. Confectionary Business. January 16, 2018. Web. May 9, 2018. https://www.ferrero.com/group-news/

[31] The Hershey Company. Our Certified Ingredients. Web. April 30, 2018. https://www.thehersheycompany.com/en_us/responsibility/good-business/responsible-sourcing.html

[32] Hershey. Hershey’s Milk Chocolate with Almonds Open Source Map. Zoom View. Web. April 2018. https://open.sourcemap.com/maps/589e10c1e4bac0b357bc3d5f

[33] The Hershey Company. 2016 Corporate Social Responsibility Report. 2017. Web. April 30, 2018. p. 11. https://www.thehersheycompany.com/content/dam/corporate-us/documents/csr-reports/2016-hershey-csr-report.pdf

[34] Ibid. p. 23

[35] Ibid. p. 12

[36] Ibid. p. 27

[37] Ibid. p. 27

[38] Hershey. Hershey Announces Cocoa For Good, the Company’s Half-billion Dollar Sustainable Cocoa Strategy. April 4, 2018. Web. April 30, 2018. https://www.thehersheycompany.com/content/corporate/en_us/news-center/news-detail.html?2340764

[39] Mars. Unveiling Our Sustainble in a Generation Plan. Sept. 5, 2017. Web. May 9, 2018. http://www.mars.com/global/press-center/newsroom/newsroom/unveiling-our-sustainable-in-a-generation-plan

[40] Farmers Income Lab. Challenges. Web. May 9, 2018. https://www.farmerincomelab.com/

[41] Mars. Income Position Statement: The Current Situation. Web. May 9, 2018. http://www.mars.com/global/about-us/policies-and-practices/income-position-statement

[42] Mars. Caring for the Future of Cocoa Out Approach. 2016. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[43] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf

[44] Mars. Caring for the Future of Cocoa Out Approach. 2016. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[45] Ibid.

[46] Mars. Frank Mars Calls for the Cocoa Industry to Take a Collaborative Scientific Approach to Cocoa. April 26, 2018. Web. May 9, 2018. http://www.mars.com/global/press-center/newsroom/frank-mars-cocoa-collaboration

[47] Mars. Cocoa: Caring for the Future of Cocoa, Our Approach. Web. April 2018. http://www.mars.com/global/sustainable-in-a-generation/our-approach-to-sustainability/raw-materials/cocoa

[48] CocoaAction. World Cocoa Foundation. Web. April 2018. http://www.worldcocoafoundation.org/about-wcf/cocoaaction/

[49] World Cocoa Foundation. Two-thirds of Global Cocoa Supply Agree on Actions to Eliminate Deforestation and Restore Forest Areas. Nov. 2017. Web. April 2018.

[50] Fountain, A.C. and Hutz-Adams, F. Cocao Barometer Report. 2018. http://www.cocoabarometer.org/Cocoa_Barometer/Download_files/2018%20Cocoa%20Barometer%20180420.pdf