Tag Archives: cocoa farms

Cocoa production and trade in Ivory Coast: Comparative advantage, Colonialism and Post-colonial ethnic conflicts.

Introduction

The history of cocoa in West Africa goes back to late 1800’S where it was grown in the  Western parts of the Ivory Coast, close to Liberia, but it did not capture the attention of colonists until two decades later.(1) One of the many colonial legacies is that a lot of African countries inherited economies that relied heavily on the exportation of one commodity. Ivory Coast, for example, has become the leading producer of cocoa and it accounts for more than 15% of its GDP. While this is not necessarily a negative thing in itself, such a narrow economic base places the country at risk of volatile world prices and spillover effects from foreign markets that linked to cocoa. In article featured in Africa Business, early March 2019, the author notes that “between September 2016 and February 2017, the cocoa Barometer for 2018 reported that the global market price declined steeply, with a tonne of cocoa…declining from $3000 to $1900.”(2) This was a result of many factors including the lack of domestic infrastructure to store cocoa beans in season of high yield and less demand. This results in pressure to sell all the beans from one season before they go bad and the farmers have to throw them away.(2) Expectedly, farmers and labor workers who work in this industry were hit the hardest and the Ivory Coast lost about $1billion.

The story of cocoa production is very much an individual story as it is a national one. Source: MGgill Journal of Political Studies

Following this crisis, the government of Ivory Coast has been working with the African Development bank to “rehabilitate the industry with new programs and schemes to attract more young people into the industry.” (3) They are also focusing on creating more domestic chocolate processing factories to capitalize on their raw materials and capture more value from the production of cocoa.(3) However, this cocoa industry, like the agriculture industry in general, is still a risky business and can easily crumble down in times of floods, pest epidemics and other natural disasters. In this essay, I discuss the colonial origins that have shaped the current cocoa industry in the Ivory Coast, their influence on the ongoing conflicts over cocoa related resources, and finally the need for Ivory Coast to diversify their economy to avoid the brutal effects of trade imbalances that may arise and exacerbate the conflicts.

Colonial roots of cocoa production in West Africa.

The colonial rule in most African countries not only shaped the economic evolution of many African states but also the political and the social. In order to understand this, it is important to understand the framework of institutions and how colonial rule helped shape the subsequent nature and shape that African institutions took in the postcolonial era. In their paper on institutions, “Understanding Institutions”, Acemoglu and Robinson argue that institutions- in other words how society is organized and functions- affect the economic performance of a country and account for the varying success in the performance of African countries post-colonialism. They find a strong correlation between extractive institutions and poor economic performance over a certain period of time. While there are some endogenous weaknesses in this analysis, it provides us the framework we need to understand the colonial effects of French rule in the Ivory Coast and how the cocoa industry became a battleground for elite ethnic groups.(4)

For the Ivory Coast, French colonial rule influenced how labor and land policies evolved over time- through both what it did and what it did not do. Firstly, because the country was sparsely populated, European settlers maintained strict laws on labor distribution through a quota system that prohibited African farmers from hiring labor until white farmers had their adequate supply of labor.(5) After the second world war, labor became increasingly scarce and many local farmers rallied against forced labor laws which led to “the cocoa boom of the 1950’s.”(5)  However, this also meant that demand for land increased dramatically as both locals and migrants scrambled to take part in the booming industry of cocoa production. Secondly, the colonial legacy of taking land without formal political and legal processes has fueled the culture of entitlement for most ethnic groups. In her paper on, “Neocolonialism or Balanced Partnership? Reframing Agricultural Relation Between the EU and Africa”, Ioana Lungu discusses the influence of colonial history in perpetuating the culture of land grabbing within a modern context. She argues that “land grabbing can be understood as a crisis of neoliberalism intersecting with neoliberal development narratives…” (6)

To reframe this within the Ivorian context, by claiming land without any institutional accountability, colonists set a foundation for future conflicts over land redistribution. As Dwayne Woods, an associate professor of political science, notes “generous concessions of land from forest reserves were authorised”. (5) To summarize, while the French had a legal framework for the distribution of labor from which Ivorians could build their own, there was none for land. A clear example of poor institutions is the absence of solid property rights that leave the elite in charge of redistribution. Thus, setting in motion the trend that would ultimately lead to extreme violence between tribes when these resources were no longer enough.The increasing costs of forest rent have become a major factor in the ethnic conflicts that are tearing apart the once socially and politically state of Ivory Coast. Forest rent is defined as the difference between “the cost of producing a kilogram of coca after clearing forest land and the cost of producing a kilogram of cocoa upon replanting.”(5)

This increase is as a result of multiple factors including the rise of land and labor costs over time as demand for arable land became higher. This also stems from the increasing marginal costs associated with re-planting cacao trees which was not there at the pioneer front- “sporadic development of unexploited tropical forest lands to plant cocoa trees”.(5) These marginal costs result from the increasing need for fertilizers, labor and better seeds to maintain the same level of production once the soil starts losing its original richness. With all these moving pieces, farmers become anxious to acquire more tropical forestland and the “cost of reclaiming land with violence is less than trying to mobilise the increased labour and capital costs to maintain the forest rent.” (5) However, one can argue that this aggressive demand for land is tied to the narrow economic base that the Ivory Coast, like many other African countries, inherited from their colonial histories. These populations have limited options for economic activities and continue to fight each other over the “most profitable” economic activity available to them- cocoa production.

Ethnic conflicts continue to increase within the region and cocoa seems to be at the center of this battle.

Economic development through Trade

This is going to become an even bigger problem as environmental groups push for less deforestation- that happens when farmers clear the forest in order to plant cocoa trees(7)- and land share becomes smaller for the demands rising population. Pests and diseases, old age cocoa farms and lack of soil nutrients have also contributed to the continuous decline of productivity and farms might not be able to meet the global demand for cocoa.(8) This would have larger implications if major buyers had to shift to other countries to acquire their supply demands. Yet, cocoa production still remains a major contributor to economic growth and urbanization in Ivory Coast. The question thus arises on whether Ivory Coast should invest in diversifying its economy away from the cocoa industry or if it should focus on creating interventions that increase productivity in the cocoa sector. There are various implications of either choice. As the lead producer of cocoa in the world, the Ivory Coast has gain tremendous economic profits from trading on the world market. These developments have gone beyond trading and had spillover effects in the rest of the economy resulting in urbanization and other economic development improvements.  

Fast growing economy over the last few years but declining over time.
Source: April, 2017 IMF outlooks

According to researcher Remi Jedwab, in his paper on, “Why is African Urbanization Different? Evidence from Resource Exports in Ghana and Ivory Coast”, argues that cocoa booms have led to city booms and consequently economic growth. He disputes the idea that structural transformations such as the green economy and the industrial revolution that accounted for the development of cities through their effect on labor mobility in the West apply in the African context. He then proceeds to argue that, for countries like the Ivory Coast, urbanization trajectory has been closely interconnected with that of cocoa production.(7) He notes that cocoa production, like urban growth, started in the East of the country and moved towards the West, but cities in the East did not collapse as more cities were formed in the West. He found that about 80% urban growth in the Ivory Coast happened in areas suitable for cocoa production and traces the trajectory as it moved East to West. That being said, it is important to maintain that correlation is not necessary causation. This urbanization could be a result of infrastructural investment and labor migration to areas of cocoa production due to its central place in the general economy. If most jobs are generated within the Agriculture sector, and more precisely cocoa production, then more people will follow wherever the industry seems to be heading.

Yet, we have seen that Ivory Coast is moving towards industrialization. The government is investing increasing both yield per ha and factories that manufacture various cocoa products. This means capturing as much value from the supply chain as possible through creating a range of factories from grinding entities to chocolate-making companies.(9) It is working towards expanding the secondary market that processes products from cocoa to reduce tensions surrounding land acquisition. This is also an attempt to create a market for their surplus and address the issue of declining cocoa prices that has resulted from a supply surplus and “substantial reserve held by consuming countries”.(9) The latter is another consideration for the Ivory Coast when evaluating its position in the world market as a country with the highest comparative advantage in cocoa production. As noted by the OECD, in a report on cocoa production by the Ivory Coast, developed countries took advantage of falling prices to store reserves and thus changing the trading landscape. Ivory Coast, and other African producers of cocoa, remain price takers because of low investment in reserves and the lack of regulation policies that protect local farmers. The result of a limited market creates tensions in which the elites struggle to accumulate all profits from cocoa along ethnic and tribal lines. This leaves farmers insecure about the safety and sustainability of their businesses and in turn affects their production capacity as well as their livelihood.

Conclusive remarks

So far, we have studied two difficult problems. On one hand, the comparative advantage that Ivory Coast has in cocoa production has not realized its full potential due to lack or limited complimentary infrastructure and policy framework to protect farmers and the economy in general. This lack of policy framework and infrastructure is a result of a combination of factors including the legacy of colonial institutions, poor leadership, and ethnic diversity along economic lines. On the other hand, we have seen an opportunity within this problem. The possibilities to diversify within the cocoa producing sectors by creating secondary markets through which the now majority youth working in the cocoa sector can transfer. I also discussed, briefly, the need for diversification to other sectors and other exports that do not rely on acquisition of big lands and that doesn’t require high labor demands. Alternatively, the Ivory Coast can consider investing in mechanized systems of cocoa production along with new education practices that allow the current labor surplus to transition in other sectors. Additionally, the new trade agreement among African countries to open borders- remove tariffs, allow labor mobility might help address this issue in the long run as more people have the choice of immigrating to other countries where they can contribute. That being said, this cannot solved without a political commitment by the government to address these challenges without partiality and with accountability.

References1

1.Oecd.org. Retrieved 3 May 2019, from https://www.oecd.org/swac/publications/39596493.pdf

2. Adding value is way forward for cocoa producers – African Business Magazine. (2019). African Business Magazine. Retrieved 3 May 2019, from https://africanbusinessmagazine.com/sectors/agriculture/adding-value-is-way-forward-for-cocoa-producers/

3. Ghana and Cote d’Ivoire seek $1.2bn loan to revitalize cocoa industries. (2018). confectionerynews.com. Retrieved 3 May 2019, from https://www.confectionerynews.com/Article/2018/08/09/Ghana-and-Cote-d-Ivoire-seek-1.2bn-loan-to-revitalize-cocoa-industries

4.(2019). Economics.mit.edu. Retrieved 3 May 2019, from https://economics.mit.edu/files/1353

5. Woods, D. (2003, December 23). The tragedy of the cocoa pod: Rent-seeking, land and ethnic conflict in Ivory Coast | The Journal of Modern African Studies. Retrieved from https://www.cambridge.org/core/journals/journal-of-modern-african-studies/article/tragedy-of-the-cocoa-pod-rentseeking-land-and-ethnic-conflict-in-ivory-coast/0BC296AE5413C02D81255DF2FE1356A7

6. Lungu, & Ioana. (2017, December 01). Neocolonialism or Balanced Partnership? Reframing Agricultural Relations Between the EU and Africa. Retrieved from https://mpra.ub.uni-muenchen.de/83112/

7.(PDF) Why Is African Urbanization Different? Evidence from … (n.d.). Retrieved from https://www.researchgate.net/publication/267386204_Why_Is_African_Urbanization_Different_Evidence_from_Resource_Exports_in_Ghana_and_Ivory_Coast

Confronting Gender Inequality in West African Cocoa Production Through Chocolate Advertisements

Chocolate has been a fascination in the West since its discovery in Mesoamerica centuries ago. Early in the history of the Western consumption of chocolate, it became feminized. Chocolate was associated with luxury and leisure in the eighteenth century, but as it became more accessible to the working class in the nineteenth century, women were charged with providing wholesome cocoa for respectable consumption in the family (Robertson, 2009). Due to the persistent feminization of chocolate, women have been the focus of marketing campaigns to sell chocolate. Cocoa adverts have fetishized images of western housewives, mothers, and women in heterosexual relationships to sell their products (Martin, 2019a). These women are often depicted as becoming irrational, narcissistic, or excessively aroused due to chocolate. However, these advertisements reveal the underlying prejudice and stereotyping that exists in the cocoa supply chain. Chocolate largely originates from the cocoa farmed in West Africa, which produces 75% of the world’s cocoa. Although this arrangement began in the 1800s, West Africans only consume 4% of the world’s chocolate (Martin, 2019b). This is due to the fact that most African-grown cocoa is exported abroad for production and the primary markets for these chocolate producers are thus outside of Africa. The romanticized image of chocolate in Western advertisements neglects the labor that goes into farming cocoa and the challenges that cocoa farmers in West Africa face. Furthermore, the dilemmas within the cocoa supply chain are exacerbated for women cocoa farmers, who are often denied privileges their male counterparts are afforded and are especially susceptible to certain dangers. Rather than focusing on Western women, who are not involved in the production of chocolate, a newer campaign has emerged to empower West African women cocoa farmers and bring light to just how integral they are in the production of chocolate.

It has been documented that women have been involved in the cocoa industry since its inception in West Africa, specifically Ghana (Robertson, 2009). Cocoa farming would not have gotten to where it is today without the labor of women, as it was central in almost every aspect of cocoa production and sale (Robertson, 2009). However, these contributions have not been met with the appropriate amount of recognition and credit. This blog will highlight women farmers in Ghana and Côte d’Ivoire, which are two of the world’s largest cocoa-growing countries and both are found in West Africa. In Ghana, women cocoa farmers earn 25%-30% less than their male counterparts and in Côte d’Ivoire women cocoa farmers earn up to 70% less than their male counterparts (Pacyniak, 2014). Also, in both countries women are met with more obstacles, such as lower farm productivity, smaller farms, and less access to financing and farm inputs. Gender gaps beyond cocoa income and productivity plague women cocoa farmers in Ghana, as women have a 25% lower level of training, a 20% lower receipt of loans, and 30%-40% lower access to critical farm inputs (e.g. fertilizer). According to women cocoa farmers, they lack the funds necessary to hire labor, making it difficult to produce cocoa (Odoi-Larbi, 2008). Gender inequality in Ivorian cocoa farming manifests in almost none of the 4% of women in cocoa co-operatives having leadership positions. Furthermore, in Côte d’Ivoire 86% of men had legal rights to their plots, while in 67% of cases, the land accessed by women was not owned by them. Although Fairtrade is an institutional arrangement designed to help producers in developing countries achieve better trading conditions, not all West African cocoa farmers benefit equally from Fairtrade (“Does Fairtrade mean a fair deal for female cocoa farmers?”, 2016). For instance, even though Fairtrade is a positive force in Ghana, women cocoa farmers are not benefitting from Fairtrade to the same extent as their male counterparts. It was found that many of the poorest and most marginalized cocoa farmers in Ghana are excluded from participating in such co-operatives, and most of these farmers are women.

The previously mentioned trials and tribulations of women cocoa farmers are addressed in the video below. As was mentioned earlier, the global cocoa supply comes from small farms in West Africa, but these farmers are often paid poorly for what they grow. Typically, women take on the heavy lifting when it comes to their share of the work, but they see minimal profits. The women in this video are from Ghana and Côte d’Ivoire and although they do most of the work, only a quarter of the cocoa farms are owned by women. The women explain this disparity, as they discuss the patriarchy that prohibits them from inheriting land. More recently, however, Fairtrade has made strides to ensure that support exists that helps women raise their income and their voices. This includes eliminating women’s dependency upon their husbands and giving women their own land on which they can produce their own cocoa. With their own farms, these women are more independent and can flourish with the right resources available to them. The video ends by urging consumers around the world to choose Fairtrade chocolate in order to support these women cocoa farmers. Other efforts have been started to raise awareness about these farmers, as the injustice of women working for nothing to produce the chocolate that we love must end.

Fairtrade and gender inequality in West Africa

Several efforts have commenced to promote corporate social responsibility, which would aid in the fight for equality for women in the cocoa supply chain. One such effort is Cocoa Life, which began in 2008 and is empowering women in Ghana’s cocoa growing communities (Amekudzi, 2013). Cocoa Life was created by Mondelēz International, a company looking to advance the rights of women cocoa farmers by increasing the emphasis on gender equality in Ghana and Côte d’Ivoire and advocating for industry-wide action (Pacyniak, 2014). To address the aforementioned challenges women cocoa farmers face, Mondelēz International presented new action plans to build upon its Cocoa Life program. This plan was a $400 million, 10-year effort set in motion in 2012. In Ghana, this project is farmer centered and based on Cocoa Life’s Cadbury Cocoa Partnership in Ghana. Specifically, Cocoa Life encourages entrepreneurship among women cocoa farmers through farmer education on cocoa agronomy and farmer training at the village level. The video below, produced by Cocoa Life, involves interviews of women cocoa farmers in Ghana who recount the times when they were excluded from the ins and outs of cocoa farming. They have been encouraged to mobilize and learn how to manage their own farms. Their situations have been improved and they have set the stage for future women cocoa farmers to prosper in their communities.

Mondelēz International, Cocoa Life, and Ghanaian women’s rights in cocoa farming

Another example of an attempt at corporate social responsibility to help women in West African communities is The Cargill Cocoa Promise. Cargill recognized that women are forced to balance household work with cocoa farming, in conjunction with having unequal access to training, inputs, and education (“Empowering women cocoa farmers in Côte d’Ivoire”, 2014). The Cargill Cocoa Promise aims to understand how gender barriers limit access to skills, information, and inputs amongst women cocoa farmers. This project kickstarted inclusive training sessions and raised awareness of gender issues. Practical steps were proposed to improve the day-to-day activities of these farmers. The people in the video below discuss how this project was conceived and executed in Côte d’Ivoire. Researchers found that culture was a driving force that exacerbated the issues plaguing women cocoa farmers, as culture determined who got to own land. They encouraged discussions within the communities in order to facilitate change and overcome the cultural biases. Also, this project increased financial literacy among women cocoa farmers, as the organizers established village savings and loan schemes, which would aid in entrepreneurship efforts.

The Cargill Cocoa Promise, corporate social responsibility, and women empowerment in West Africa

As was preliminarily mentioned, a newer campaign has emerged to shed light on the West African women who make large contributions to the production of chocolate. Divine Chocolate Limited is a purveyor of Fairtrade chocolate and although it was originally established in the United Kingdom, it is co-owned by the Kuapa Kokoo cocoa farmers’ co-operative in Ghana. In order to emphasize to UK chocolate shoppers that Ghana is a cocoa origin site, Divine Chocolate released a set of advertisements that feature women cocoa farmers from Ghana, and these advertisements appeared in British editions of women’s magazines, such as Elle, Cosmopolitan, Red, and OK! (Leissle, 2012). As is shown in the images below, the women cocoa farmers are depicted as glamorous business owners who participate in transnational exchanges of raw materials and luxury goods, and as beneficiaries of these exchanges. These women are a part of the Kuapa Kokoo co-operative, which makes them co-owners of Divine Chocolate. The advertisements emphasize the women’s position as co-owners, as they state each woman’s name along with her position. Also, Ghana’s adinkra symbols appears on Divine Chocolate’s bar wrappers and this is shown in the photographs. Furthermore, the background of each advertisement shows ‘Africa’, which is represented by images of Ghana’s agricultural economy. This includes cocoa drying tables, plantain trees, coconut trees, mud buildings, and dusty roads. Each woman appears in the foreground holding pieces of chocolate, which is a luxury food made from the fruit they farm. These images are paired with titles such as ‘Equality Treat’, ‘Decadently Decent’, and ‘Serious Chocolate Appeal’ in order to suggest to consumers that their own enjoyment of Divine Chocolate bars should come not only from the joy of eating chocolate, but from the fact that the women who farm the cocoa also enjoy it. This implies that the Kuapa Kokoo women cocoa farmers not only grow the raw materials, but they also consume the chocolate. This is a far cry from the statistic reported earlier that said only 4% of West Africans consume the world’s chocolate.

Divine Chocolate advertisement featuring Beatrice Mambi.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.
Divine Chocolate advertisement featuring Priscilla Agyemeng.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.
Divine Chocolate advertisement featuring Rita Nimako.
Source: Reprinted with permission from Divine Chocolate. Photograph by Freddie Helwig and St. Luke’s advertising agency.

Divine Chocolate’s advertisements are revolutionary in that they do not rely on the stereotypical and romanticized images of Western women to sell their chocolate. Instead, this company is knocking down two birds with one stone: they are empowering West African women cocoa farmers while challenging the notion that Africa is not modern. Leissle states that “the Divine images pose a challenge to narratives that cast Africa as continually on the losing side of harmful dualisms and reframe Africa’s role in modernity” (2012). In Binyavanga Wainaina’s “How to Write About Africa”, he challenges Western literature that persistently refuses to disperse a picture of a “well-adjusted African” (unless he or she has won a Nobel Prize), neglects the fact that the continent is dynamic in that it is full of deserts, jungles, highlands, and savannahs, and depicts the African woman as starving, nearly naked, and waiting for the aid of the West (2006). However, the Divine Chocolate adverts pose the Ghanaian women cocoa farmers as “attractive, socially mobile beneficiaries of their own development efforts” (Leissle, 2012). The videos previously discussed highlighted that West African women are commonly held back in their farming endeavors by the patriarchal notion that women are only instrumental in uplifting the family. However, the Divine women are not tethered to their responsibilities as wives and mothers and are not viewed as reproductive laborers in these advertisements. These women are framed as “active agents of a self-gratifying transnational business arrangement” (Leissle, 2012). Overall, the combinations of the Divine women’s playful, yet strong, poses, the invitation to enjoy chocolate, and the text present West African women cocoa farmers as savvy luxury consumers and implies their individual participation in the privileged aspects of modernity narratives (Leissle, 2012).

One way to address and combat the gender inequality that exists in the cocoa supply chain is to draw attention to West African women as primary contributors. The fetishization of Western women in chocolate advertisements only exacerbates the issue at hand because it masks the labor that was invested into producing the chocolate. In looking at the origins of the chocolate, one will find that West Africa as the world’s primary cocoa growing region is faced with many critical challenges, such as volatile income, unfair farm economics, and lack of laborers (Martin, 2019b). Women cocoa farmers are especially harmed by these challenges as the patriarchy in West Africa makes it difficult for them to overcome these obstacles. However, some solutions have gone into effect to empower these women. Additionally, Divine Chocolate’s campaign presents “a fresh visual reframing of the exchanges of goods and capital between Africa and Europe” (Leissle, 2012). Other purveyors of chocolate should follow in Divine Chocolate’s footsteps when it comes to advertisements and give credit to the people who make eating chocolate possible.

References

Amekudzi, Y. P. (2013, February 28). Cocoa Life- the project empowering women in Ghana’s cocoa growing communities. Retrieved April 30, 2019, from https://businessfightspoverty.org/articles/yaa-peprah-amekudzi-cocoa-life-the-project-empowering-women-in-ghanas-cocoa-growing-communities-2/

Does Fairtrade mean a fair deal for female cocoa farmers? (2016). European Union News.

Empowering women cocoa farmers in Côte d’Ivoire. (2014, April 15). Retrieved April 30, 2019, from https://www.cargill.com/story/empowering-women-cocoa-farmers

Leissle, K. (2012). Cosmopolitan cocoa farmers: Refashioning Africa in Divine Chocolate advertisements. Journal of African Cultural Studies, 24(2), 121-139.

Martin, C. (2019). Lecture April 3: Race, ethnicity, gender, and class in chocolate advertisements. Harvard University.

Martin, C. (2019). Lecture March 27: Modern day slavery. Harvard University.

Odoi-Larbi, S. (2008). Female Cocoa Farmers Cry for Help. Africa News Service.

Pacyniak, B. (2014). Mondelez affirming women’s rights in cocoa-growing areas. Candy Industry, 179(6), 12-13.

Robertson, E. (2009). Chocolate, Women and Empire: A Social and Cultural History (Studies in imperialism (Manchester, England)). Manchester; New York: New York: Manchester University Press; Distributed in the United States exclusively by Palgrave Macmillan.

Wainaina, B. (2006, January 19). How to Write About Africa. Retrieved April 30, 2019, from https://granta.com/how-to-write-about-africa/

Multimedia sources

Cargill. (2016, March 7). Women in agriculture: empowering African cocoa farmers [Video file]. Retrieved from https://www.youtube.com/watch?v=sYeGiFHlDm4

Fairtrade Foundation. (2019, March 5). Meet the Women Cocoa Farmers Facing Adversity in the Ivory Coast [Video file]. Retrieved from https://www.youtube.com/watch?v=yP5NR3BbdKE

Mondelez International. (2013, November 12). Cocoa Life: Community leaders – Interview with Gladys and Vida in Ghana [Video file]. Retrieved from https://youtu.be/REMKY62MHno

Images retrieved from Leissle, K. (2012). Cosmopolitan cocoa farmers: Refashioning Africa in Divine Chocolate advertisements. Journal of African Cultural Studies, 24(2), 121-139.

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

CHOCOLATE WASTED: When Overindulgence Goes Wrong

#ChocolateWasted As We Know It

“Chocolate wasted” was not a hashtag when it first presented itself. As a matter of fact, it was blurted out by a six-year-old actress named Alexys Nycole Sanchez (playing Becky Feder) in Adam Sandler’s Grown-Ups. Per the movie’s storyline, “I wanna get chocolate wasted!” was an appropriate phrase for childlike overindulgence that caught every movie-goer’s attention in 2010 (IMDb). The legendary line even helped Alexys win the “Best Line” category at MTV Movie Awards the following year (IMDb). Soon after, headlines like Los Angeles (LA) Times, celebrities and random college students, like myself, were using the term rather frequently. Still today, there are establishments and products named after the infamous idiom such as a Houston-based ice cream truck and a lipstick shade made by Doses of Color, respectively (Chocolate; Dose of Colors). Amazingly, the power of the Internet allows us to revisit its cinematic origination and locate namesake innovations. But truthfully speaking, the denotation of chocolate wasted is not leading in headlines like its figurative interpretation nor being quantifiable in scholarly publications. Prior to diving into a serious topic, I have several questions that will hopefully heighten your interest to want to learn more.

  • What is food waste (including chocolate waste)? What are the associated impacts?
  • What are direct implications from chocolate waste throughout the supply chain?
  • What qualities does a sustainably certified product uphold? Is waste not included in the sustainability assessment? Does waste not contribute to the overexertion of resources and labor? 
  • How do I avoid chocolate waste in my home? Does chocolate have an expiration date? Is chocolate (or cocoa) mulch safe for pets?

 

reinigung_von_kakaobohnen

By Pakeha [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)%5D, from Wikimedia Commons

Läderach Chocolate Factory, a Switzerland-based manufacturer, displays a collection of “cocoa waste” in their in-house museum for tourists’ enjoyment. From right to left there: cocoa with waste materials, extracted waste (like stones, dust, metal or wood), and cleaned cocoa.

 

Food Waste: A Global Problem

On a global scale, 1.3 billion tons of food production meant for human consumption gets lost or wasted annually (FAO). Regarding economic losses, food waste is equivalent to $310 billion in developing countries and $680 billion in industrialized countries with the U.S. leading in food waste and overall wastage than any other country in the world (FAO). Specifically, in the U.S., about 40 percent of food goes uneaten annually which equates to 133 billion pounds with an USD value $161 billion (USDA, n.d.). Conversely, 42 million Americans including 13 million children are facing food insecurity and hunger daily (FAO). Hypothetically speaking, the diversion of 93,000 tons of wasted food could create 322 million meals for people in need and reduce greenhouse gas emissions by 714,000 tons (ReFED). This alarming amount of wasted food is not only associated with socioeconomic implications but it also depletes natural resources significantly.

According to Natural Resource Defense Council (NRDC), U.S. food production utilizes the following: 50% of land, 30% of all energy resources, and 80% of all freshwater (Gunders). Resources consisting of land, water, labor, energy and agricultural inputs (fertilizers, pesticides and fungicides) to produce wasted food are squandered as well, unwillingly inviting resource scarcity and negative environmental externalities. Activating ozone pollution, the misuse of agricultural inputs including irrigated water, pesticides and common fertilizers like nitrogen & phosphorus can cause further damage to ecosystems. Irrigation practices promotes water pollution affecting quality, groundwater accessibility, and potable water accessibility (Moss). Moreover, pesticides are common culprits to human health effects, resistance in pests, crop losses, bird mortality and groundwater degradation (Moss). Other inputs, such as nitrogen and phosphorus fertilizers, wreak havoc to human health, air quality and aquatic ecosystems (Moss).

The utilization of resources is not the only emitter of greenhouse gas emissions, pertaining to food waste, but also the decomposition of it makes substantial damage to the environment. Postharvest, food waste is the single largest component of municipal solid waste making landfills the third largest source of methane in the country (Gunders). Anthropogenic methane accounts for 10 percent of total greenhouse gas (GHG) emissions contributing to a rise in global average temperatures, better known as global warming (EPA, n.d.b). Particularly, landfill methane generates 16 percent of total methane releases compared to carbon dioxide which emits 81% annually (EPA). Although carbon dioxide is the main contributor of global warming, methane carries significant weigh as a pollutant due to its ability to absorb more energy per unit mass than any other greenhouse gas (EPA).

Pinpointing on ecological footprint, the most recent “Earth Overshoot Day” occurred on August 2, 2017 in which the extraction of natural resources exceeded the Earth’s capacity to regenerate in the given year (Earth Overshoot Day). By partnering with Barilla Center for Food & Nutrition, Global Footprint Network also reported that a 50% reduction in food waste could push the date of “Overshoot Day” by 11 Days (Earth Overshoot Day).

Chocolate Waste Feeds the Food Waste Problem

The classification of food waste is distinguished by each level of the supply chain including agricultural production, post-harvest handling & storage, processing, distribution and consumption. From a global supply chain perspective, food waste is very difficult to define across countries. The conflicting views of edible versus inedible food waste is one example of cultural variation which impedes the approval of a standardized definition that will cater to all diverse parties and accurately measure waste at the macro level. For instance, the U.S. chocolate market classifies the pulp of a cocoa pod along with the shell of the cocoa bean as inedible products. Thus, cocoa pulp is left at the farmgate level, and at the processing level, cocoa shells are removed and most commonly converted into biofuel or mulch.  Unlike the US, the Brazilian chocolate market produces chocolate with cocoa solids but also makes shell and pulp into sellable products such as loose leaf tea or juice, respectively. Moreover, these value-added practices are present-day testaments of indigenous traditions. The myriad indigenous uses of cacao and chocolate products are analogous to the circular economy that we are yearning for today.

During the Mesoamerican period, chocolate was classified as an esteemed delicacy, a form of payment, ceremonial gift, everyday cooking agent, natural remedy for human health & the environment and so forth. However, during European colonization, the rise of industrialization came with added ingredients, mainly refined sugar, that devalued the quality aspect as well as created a negative image of chocolate over time (Martin, “Sugar”). The health risks of added sugars began to overshadow the medicinal properties of cacao. Even the perception of cacao changed from a specialty crop into a cash crop.  From a socioenvironmental view, terroir of cash crops rose in volatility at the extent of mass enslavement and corruption (Martin, “Health”). At the same time, these characteristic flaws did not stop consumption. Even today, popular chocolate products are sugary, highly processed and in conjunction with unethical sourcing backgrounds. For instance, laborers endure labor-intensive work on a daily basis in top cocoa producing countries, such as West Africa. The average laborer is paid below the global poverty line, uses dangerous tools such as a machete to manually cut down cacao pods, applies fungicides & pesticides typically without the proper protective equipment (PPE) and oftentimes exposed to insects and other dangerous animals. In turn, these hazards can result in serious health complications both physically and mentally.

cocoa_farmers_during_harvest

By ICCFO – Own work, CC BY-SA 4.0

West African laborers removing beans from the cacao pod. It is a labor-intensive process. 

Nonetheless, the chocolate market has expanded its portfolio over the years, containing commercial chocolate and craft chocolate, in which consumers can be selective among the two categories.  Commercial chocolate is what we usually see in supermarkets in which the supply chain depends on multiple stakeholders (across countries) to meet global demand. Whereas, craft chocolate consists of a relatively small team who produces chocolate in small batches from cocoa bean to bar (Martin, “Haute”). Compared to commercial chocolate, these manufacturers seek to provide quality rather than quantity which typically comes with a higher retail price (Martin, “Haute”).

Once it hits retail, consumers, like myself, are in awe of the multiple offerings, appealing packaging and even sustainability labels that lures us in to help  “save the world” and eliminate any guilt from buying chocolate.  It’s like a race to find the one with the most honorable mentions comprising of Organic Certified (USDA, Non-GMO and an overlap of third-party ethical standards (Rainforest Alliance, Fairtrade, etc.) However,  after investigating various sustainability standards, retail chocolate waste is not attributable to certifiable requirements nor is it recognized as a concern overall. Based on logical reasoning and what I stated earlier, the primary ingredients of chocolate consisting of refined sugar, cocoa derivatives (cocoa powder and butter), palm oil and/or milk powder that were extracted from its origination to be processed, transported and packaged as a single product. In addition, these ingredients are combined and further processed into chocolate which is then packaged and transported to retail as a finished good. Just imagine the man hours, natural resources and other inputs used within this supply chain. Broaden that imagination to consider the following: consumers discarding “safe-to-eat” chocolate confections due to fat or sugar bloom, retailers not knowing what to do with an overstock of unsold seasonal products, improper storage temperatures ruining a truckload full of chocolate candies, outdated farming techniques producing more waste than yield and slightly related, the packaging of sustainably certified chocolate causing more harm to the environment than conventional chocolate. The latter, wasteful packaging, is another topic that needs assessment and corrective actions. Unfortunately, these scenarios are real-life examples that are being overlooked and emitting an indefinite amount of greenhouse gases.

In actuality, retailers have the potential to be the main change agents for food waste reduction including chocolate waste. However, edible food is commonly thrown away in these spaces due to excess inventory, imperfections, or damaged packaging. A recent study conducted by the Center for Biological Diversity’s Population & Sustainability and Ugly Fruit & Veg Campaign, reported a grade C or below to most of the top ten grocers in the country including Kroger, Whole Foods, Trader Joe’s, Publix and Costco (Center for Biological Diversity). The relatively low grades were based on their poor efforts to address and combat food waste in eight focus areas: corporate transparency, company commitments, and supply chain initiatives, produce initiatives, shopping support, donation programs, animal feed programs and recycling programs (Center for Biological Diversity). Both sustainability driven organizations have pronounced a goal for all U.S. grocery stores to eliminate food waste by 2025 (Center for Biological Diversity). Grocers were also pushed to change their current marketing models into sustainable ones by promoting safer handling and lesser stock levels, leveraging new technologies to strengthen inventory management and creating policies on retail spoilage reduction (Center for Biological Diversity).

easter_chocolate_in_suburban_food_store_in_brisbane2c_australia_in_2018

By Kgbo – Own work, CC BY-SA 4.0,

A grocer aisle full of chocolate candies wrapped with seasonal packaging.

 

The Rise of Chocolate Production and Waste

Informatively, consumers worldwide indulge in approximately 7.3 million tons of chocolate every year (Sethi). Developing countries, such as India, Brazil and China, are adopting chocolate products that were once inaccessible or unaffordable for their respective populations (Sethi). Since 2008, disposable incomes for each these emerging markets are increasing exponentially due to economic boost from industrialization (Sethi). The rising market of chocolate products equates to a growing demand for global cocoa and sugar production. Industry experts forecasts a 30% growth in demand, from 3.5million tons of cocoa annually to more than 4.5 million in 2020 (Sethi). In consideration, the amount of chocolate squandered throughout the supply chain is currently undetermined or not shared publicly. Based on noticeable discrepancies in definitions and measurements, chocolate waste and even food waste for that matter will continue to intensify and be discussed loosely unless it’s highly prioritized and welcomes a new branch of international cooperation and mutual accountability. A stride that’s executable if all stakeholders collectively build upon a new systematic approach to carbon neutrality, waste diversion and socioenvironmental benefits.

 

Chocolate Commonsense

In the meantime, I’ve provided a list of suggestions below that can help you, as a consumer, avoid chocolate waste or divert it to greener waste streams. 

  • Purchase in moderation.
  • Don’t be alarmed by “Sell By Date”. Depending on care and the type of chocolate (milk, dark or white), chocolate is still safe to consume for longer periods of time.
  • Chocolate bloom, (whether sugar or fat bloom) which gives off a whitish or light coating on the chocolate’s surface, is still safe for consumption.
  • To retain freshness and structure, cool and dark environments are ideal storage locations for chocolate.
  • Have an excessive amount of unopened chocolate? Donate to participating charities like Ronald McDonald House Charities and Operation Gratitude.
  • ONLY FOR CONSUMERS WITHOUT PETS: Add leftover chocolate or raw cocoa shells, particularly organic certified, in compost for home gardening. *Fyi to pet owners, chocolate is poisonous to dogs and cats due to its theobromine content. If you have pets, you can distribute waste to a composting facility.
  • Advocate for chocolate waste (and food waste) assessments from involved stakeholders (including local and national governments, non-governmental organizations [Rainforest Alliance, Fairtrade, etc.] retailers, distributors and manufacturers)

cocoa_mulch_28405161134929

By Leslie Seaton from Seattle, WA, USA – Cocoa Mulch, CC BY 2.0.

Cocoa mulch is made out of cocoa shells (most times organic) which are beneficial to soil health.  Organic cocoa mulch contains nitrogen, phosphate and potash and has a pH of 5.8 (Patterson). There is also a noticable warning sign to keep dogs away due to theobromine content, which is scientifically proven to be very harmful to pets.

 

 

 

Works Cited.

IMDb. Alexys Nycole Sanchez. https://www.imdb.com/name/nm3465073/?ref_=nmawd_awd_nm

Chocolate Wasted Ice Cream, Co. About Us, 2017. https://chocolatewastedicecream.com/

Dose of Colors. CHOCOLATE WASTED, 2018. https://doseofcolors.com/products/chocolate-wasted

FAO. Food Loss and Food Waste. http://www.fao.org/food-loss-and-food-waste/en/

ReFED. A Roadmap To Reduce U.S. Food Waste By 20 Percent, 2016. https://www.refed.com/downloads/ReFED_Report_2016.pdf

Gunders, Dana.“Wasted: How America Is Losing Up to 40 Percent of Its Food from Farm to Fork to Landfill”. Natural Resources Defense Council, Natural Resources Defense Council Issue Paper 12-06-B, 2012, https://www.nrdc.org/sites/default/files/wasted-food-IP.pdf

Moss, Brian.“Water pollution by agriculture”. US National Library of Medicine

National Institutes of Health, 2007, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2610176/

EPA. Methane Emissions. https://www.epa.gov/ghgemissions/overview-greenhouse-gases

Earth Overshoot Day. Food demand makes up 26% of the global Ecological Footprint, 2018,  https://www.overshootday.org/take-action/food/

Martin, Carla D. “Sugar and Cacao”. Chocolate, Culture, and the Politics of Food, 14 Feb 2018, Harvard Extension School, Cambridge, MA. Class Lecture.

Martin, Carla D. “Health, Nutrition, and the Politics of Food + Psychology, Terroir, and Taste”. Chocolate, Culture, and the Politics of Food, 11 April 2018, Harvard Extension School, Cambridge, MA. Class Lecture.

Martin, Carla D. “Haute patisserie, artisan chocolate, and food justice: the future?”. Chocolate, Culture, and the Politics of Food, 18 April 2018, Harvard Extension School, Cambridge, MA. Class Lecture.

Center for Biological Diversity. Checked Out: How U.S. Supermarkets Fail to Make the Grade in Reducing Food Waste. Center for Biological Diversity, 2018, http://www.biologicaldiversity.org/programs/population_and_sustainability/grocery_waste/In-

Sethi, Simran.  “The Life Cycle Of Your Chocolate Bar” Forbes. 22 Oct 2017 https://www.forbes.com/sites/simransethi/2017/10/22/the-life-cycle-of-your-chocolate-bar/#42eff5bd66d8

Patterson, Susan. “Cocoa Shell Mulch: Tips For Using Cocoa Hulls In The Garden”, 5 April 2018, https://www.gardeningknowhow.com/garden-how-to/mulch/using-cocoa-hull-mulch.htm

Pakeha. Reinigung von Kakaobohnen.jpg., WikiMedia Commons.7 December 2017, 17:56:47

Kgbo. Easter chocolate in suburban food store in Brisbane, Australia in 2018.jpg, WikiMedia Commons, 24 February 2018, 10:04:29

Seaton, Leslie. Cocoa Mulch (4051611349).jpg, WikiMedia Commons, 20 October 2009, 15:55

ICCFO. Cocoa farmers during harvest.jpg. WikiMedia Commons, 1 January 2015,

 

 

 

 

The Ethical and Economic Rationale for Selling Fair Trade Chocolate

The sale of chocolate is big business. According to the National Confectioners Association, chocolate sales totaled $21.1 billion in the United States in 2014. (Franchise Help). Despite the significant size of the market, growers responsible for cultivating cocoa do not always share the benefits. The Fair Trade movement attempts to address this imbalance and improve the economic plight of cocoa growers. This ethical movement has resonated with consumers, and there is well-documented consumer demand to purchase Fair Trade items. Despite the ethical and economic rationale for selling Fair Trade chocolate, cocoa sold with the Fair Trade label accounts for a very low 0.5% share of the global cocoa market, according to International Cocoa Organization. Based on the ethical and economic benefits companies will attain from distributing Fair Trade products, a strong case can be made for retailers to offer a larger selection of Fair Trade chocolates.  

Despite the significant global demand for cocoa products, producers struggle with economic deprivation & human rights abuses. As a result of oversupply and fluctuating commodity prices, many cocoa growers live below the global poverty line, and earn less than $2 a day (ILPI 14). In addition to the struggle to afford basic life necessities, many cocoa growers are unable to hire sufficient labor and are forced to rely instead on having family members farm, including children who might be pulled from school. Even worse, other children are trafficked as low-salary laborers or even slaves, and forced to work on some cocoa plantations. There are an estimated 880,00 child laborers in Ghana, and 1,150,00 children working in Côte d’Ivoire (ILPI 31). Many of these children work in hazardous conditions, including operating heavy machinery, applying pesticides to foods, and using dangerous tools to harvest cacao pods.

In order to improve economic and human rights conditions, Fair Trade organizations have developed systems that organize cocoa growers to sell their goods as part of collectives which increases their bargaining power and reduces layers of middlemen. Cocoa growers receive a guaranteed minimum price for their goods which allows them to earn a living wage. This helps ensure that cocoa growers have a safety net when cacao falls below a sustainable level as a commodity. This is valuable to the cocoa growers because cocoa prices can be volatile and can move in a wide range, thereby creating uncertainty in the price that the cocoa growers will receive for their crop. 

Cocoa com
Cocoa prices

 

The Fair Trade organization consults producers, traders and other stakeholders and to determine a fair price for cocoa. The cooperatives also receive an additional “Fair Trade premium” where members have discretion to spend the funds in order for the benefit the cocoa growers and their communities. The Fair Trade premium for standard quality cocoa is $150 / ton. (International Cocoa Organization) and the Minimum Price including the Fair Trade Premium is $1,750 / ton. In return for these economic benefits, cocoa growers agree to comply with the organization’s labor standards which prohibit child labor and protect against other human rights abuses. Additional standards include environmental protections. 

Producers of goods that purchase from Fair Trade providers display logos on their products which inform consumers the food was produced under Fair Trade standards. Consumers who purchase these items can be confident that they are supporting the Fair Trade system. 

Fair Trade orGANIZATIONS
Fair Trade logos

 

While there is a strong ethical case to be made for the sale of Fair Trade items, the question remains as to whether consumers are interested in purchasing them. Numerous academic studies have been conducted to investigate the amount of consumer interest in Fair Trade goods.

The first question a retailer should consider is whether or not consumers are interested in buying Fair Trade products and the amount they would be willing to pay. A survey posed to American consumers the questions of whether they value Fair Trade products and how much more they would be willing to pay for Fair Trade coffee. The results of this survey indicated that Americans are interested in Fair Trade products and would to be willing to pay $0.22 /lb. more for Fair Trade coffee than for the non-Fair trade equivalent. (Carlson 5)

Researchers at the Stanford Business School set up an experiment to determine whether coffee carrying a Fair Trade label sold better, equally, or worse than identical coffee not labeled. The results showed that the Fair Trade label had a substantial positive effect both on the quantity sold as well as the price it was able to command. Researchers found that sales rose by almost 10% when a coffee carried a Fair Trade label as compared to the same coffee carrying a generic placebo label. A second study found that demand for Fair Trade coffee was inelastic; sales of the Fair Trade labeled coffee remained fairly steady when its price was raised by 8%. In contrast, coffee without the Fair Trade labels experienced a 30% decline in sales after a similar price increase (Hainmueller et al 2).

In another study, titled “Are Consumers Willing to Pay More for Fair Trade Certified Coffee?” the author looked at items that went through Fair Trade certification and compared the price consumers were willing to pay for the same item before and after the item received its Fair Trade certification. The conclusion was that “consistent with prior work… (the study) finds that Certification has a large positive effect on the price of coffee”, although this paper determined that the premium consumers were willing to pay for Fair Trade certification was smaller than previous studies. (Carlson 16)

Fair Trade labeling produces a measurable response in the brain. Researchers from the University of Bonn conducted a two part study to discern the neural effects of Fair Trade labels. In the first part of the study, subjects were shown pictures of 80 different products, 40 with the Fair Trade emblem, and 40 identical items without the emblem. They were then prompted to choose how much they were willing to pay for each item. Not only were customers willing to pay more for each Fair Trade object, but fMRI scans revealed that while ‘buying’ these objects, the activity of the reward section of the subjects brains increased when the subjects were buying Fair Trade labelled items. For the second part of the study, a conventional chocolate bar was broken up into pieces for every participant and then equally distributed on two small plates. While the chocolate on the two plates were identical, scientists told subjects that one plate contained conventional chocolate, while the other was Fair Trade certified chocolate. When eating what they believed to be Fair Trade chocolate, fMRI scans showed “increased experienced taste pleasantness and intensity for the [Fair trade] label” (Enax et al 11)

At least some of the demand for Fair Trade chocolate can be attributed to positive, albeit unsubstantiated, perceptions that Fair Trade chocolate is healthier than non-Fair Trade chocolate. The ‘Halo Effect’, is a well known psychological phenomenon in which a singular good trait of a person or object leads people to apply additional good traits to the person or item. Companies can often be seen taking advantage of the halo effect by promoting organic, non-GMO, and locally grown products. Likewise, Fair Trade goods also tend to be perceived as having superior characteristics when compared to non-Fair Trade goods. In one study, subjects were given a description of a brand of chocolate. The control group was given no information about the chocolate, while the other group was it was told it was a Fair Trade product produced by a manufacturer that pays cocoa growers “50 percent more than the standard market price for cocoa, to ensure that the growers receive a fair wage for their efforts.” When the participants were later asked whether they believed the chocolate they had been presented with contained more, equal, or fewer calories compared to other brands, those who had been told that the chocolate was Fair Trade perceived it as lower-calorie than other brands. (Jacobs 1).

The moral arguments for Fair Trade products resonate with consumers. Numerous studies conclude because of the ethical considerations, consumers are interested in buying Fair Trade products. Selling Fair Trade chocolate makes sound economic sense and there is a demand for Fair Trade products. Are Fair Trade products readily available for purchase by American consumers? In order assess the availability of Fair Trade chocolate products I conducted a survey of five retailers: Whole Foods, Trader Joe’s, CVS and Rite Aid drugstores and Key Food supermarkets to determine the extent of their Fair Trade chocolate selection. Whole Foods and Trader Joe’s were chosen because they are two out of the three retailers listed on the Fair Trade America’s website. CVS and Rite Aid were chosen as representative of chain drug stores. Key Food was chosen as representative of a neighborhood supermarket. The survey was conducted the week of May 6, 2018. In order to correct for variations in offerings and out of stocks at different locations, two locations for each retailer were surveyed.

Whole Foods
Whole Foods is a supermarket chain with 470 stores, primarily in North America (Securities and Exchange Commission). Whole Foods has a strong history and association with social responsibility. As part of the Core Values listed on the website, Whole Foods highlights “We practice win-win partnerships with our suppliers”, a notion highly aligned with Fair Trade philosophy.  Each of the Whole Foods surveyed had an extensive selection of Fair Trade chocolates which comprised nearly all of the chocolate items for sale. The stores surveyed had approximately 100 different Fair Trade chocolate products for sale, from 16 companies. 

Brand 95 East Houston St. store  4 Union Square store
365 house brand 4  –
Alter Eco 4 5
Barethins 4
Divine 11 8
Endangered Species 11 10
Equal Exchange 4 4
Green & Black 9 7
Jelina  – 4
Lake Champlain 7 9
Lilly’s 9 8
Madecasse (Direct Trade) 7 7
Taza (Direct Trade) 5 5
Theo Chocolate 13 13
Unreal 5 5
Vosages 7
Whole Foods – private label 4 8
Total 97 100

Whole Foods FT chocolate
Whole Foods Fair Trade chocolate offerings (photo taken by author)

Trader Joe’s

Trader Joe’s is a supermarket chain with 474 stores nationwide (Trader Joe’s). The company does not highlight social responsibility, but rather “innovative, hard-to-find, great-tasting foods… that cut our costs and save you money.” While the company does not position themselves as placing a high value on socially responsible products, they do maintain lists Vegan, Gluten Free, and Kosher products.  Based on the “Halo Effect” described above, this might lead some customers to make the association with selling Fair Trade items as well. The Trader Joe’s stores surveyed had a very limited selection of Fair Trade Chocolates. 

Brand 14th St. store 31st Street store
TJ Batons 3 3
TJ Fair Trade Organic 1
Total 3 4

Trader Joes FT chocolate
Trader Joe’s Fair Trade chocolate offerings (photo taken by author)

CVS / Rite Aid

CVS is a pharmacy/convenience store chain with 8,060 stores and Rite Aid is a chain similar to CVS with 2,550 stores (Securities and Exchange Commision) CVS and Rite Aid cater to a much broader demographic than either Whole Foods or Trader Joe’s. Of the stores surveyed, the number of Fair Trade chocolate products were far below those sold at Whole Foods, and sold a similar number of Fair Trade chocolate items to Trader Joe’s. 

CVS

Brand 500 Grand Street store 253 1st Ave. store
Chauo 3
Endangered Species 1
Total 4 0

CVS FT chocolate
CVS Fair Trade chocolate offerings (photo taken by author)

Rite Aid

Brand 408 Grand St. store 81 First Ave. store
Bark Thins 3 2

Rite Aid FT chocolate
Rite Aid Fair Trade chocolate offerings (photo taken by author)

Key Food

Key Food is a cooperative of independently owned supermarkets located in the Northeast. Of the two stores surveyed, one sold no Fair Trade items while the other sold considerably more than CVS, Rite Aid or Trader Joe’s.

Brand 43 Columbia St. – store 52 Ave. A – store
Divine 11
Endangered Species 6
Green & Black 5
Total 0 22

Key Food FT chocolate
Key Food Fair Trade chocolate offerings (photo taken by author)

 

Despite the sound ethical and economic reasons for retailers to sell Fair Trade chocolate, cocoa sold with the Fair Trade label still captures a very low share of the cocoa market. Research indicates that consumers are interested in purchasing Fair Trade products and are willing to pay a premium. Whole Foods has tapped into this demand and demonstrates that it is possible for a retailer to offer an extensive selection of Fair Trade chocolate items. They however seem to be more the exception rather than the rule. If other retailers tapped into the demand and offered a more extensive selection of Fair Trade chocolate, it is likely that more Fair Trade chocolate would be purchased and more cocoa suppliers would share the benefits of Fair Trade.

 

Works cited

Cameron. “KEEP CALM AND ONLY EAT FAIR TRADE CHOCOLATE.” Keep-Calm-o-Matic, Keep Calm Network Ltd., http://www.keepcalm-o-matic.co.uk/p/keep-calm-and-only-eat-fair-trade-chocolate/.

Carlson, Adam P. Are Consumers Willing to Pay More for Fair Trade Certified Coffee? Are Consumers Willing to Pay More for Fair Trade Certified Coffee?


“Child Labour in the West African Cocoa Sector.” International Law and Policy Institute, 26 Nov. 2015, ilpi.org/wp-content/uploads/2015/11/20151126-Child-labour-in-the-West-African-Cocoa-Sector-ILPI.pdf.


“Chocolate Industry Analysis 2018 – Cost & Trends.” Franchisehelp.com, www.franchisehelp.com/industry-reports/chocolate-industry-analysis-2018-cost-trends/.


“Cocoa | 1959-2018 | Data | Chart | Calendar | Forecast | News.” Trading Economics, TRADING ECONOMICS, tradingeconomics.com/commodity/cocoa.


Enax, Laura, et al. “Effects of Social Sustainability Signaling on Neural Valuation Signals and Taste-Experience of Food Products.” Frontiers in Behavioral Neuroscience, vol. 9, 2015, doi:10.3389/fnbeh.2015.00247.

“Fairtrade Certified Products – Fairtrade America.” Fair Trade, Fair Trade, www.fairtradeamerica.org/Fairtrade-Products.


“Fair Trade Labels.” A Fair Trade Place, WordPress,

afairtradeplace.files.wordpress.com/2012/02/fair-trade-logos3.jpg.


Hainmueller, Jens, et al. “Consumer Demand for the Fair Trade Label: Evidence from a Field Experiment.” The Review of Economics and Statistics, vol. 97, no. 2, Feb. 2014, pp. 242–256., doi:10.2139/ssrn.1801942.


“International Cocoa Organization.” International Cocoa Organization, www.icco.org/about-cocoa/chocolate-industry.html.


Jacobs, Tom. “’Fair Trade’ Chocolate Perceived as Healthier.” Pacific Standard, Pacific Standard, 5 Jan. 2012, psmag.com/economics/fair-trade-chocolate-perceived-as-healthier-38894.


“Jens Hainmueller: Will People Pay More for Fair Trade Products?” Youtube, Stanford Graduate School of Business, 18 Feb. 2015, www.youtube.com/watch?v=fMiy1Y55DLA.


United States, Congress, Washington, D.C. “Edgar .” Edgar , SECURITIES AND EXCHANGE COMMISSION, 17 Nov. 2017.

www.sec.gov/Archives/edgar/data/865436/000086543617000238/wfm10k2017.htm.


United States, Congress, Washington, D.C. “Edgar.” Edgar, SECURITIES AND EXCHANGE COMMISSION, 14 Feb. 2018. www.sec.gov/Archives/edgar/data/64803/000155837018000707/cvs-20171231x10k.htm.


United States, Congress, Washington, D.C. “Edgar.” Edgar, SECURITIES AND EXCHANGE COMMISSION, 26 Apr. 2018. www.sec.gov/Archives/edgar/data/84129/000104746918003207/a2235393z10-k.htm.


“What Is Fair Trade.” Youtube, FairtradeANZ, 12 July 2017, www.youtube.com/watch?v=JoIZWd2q2Ec.


“WHERE IN THE DICKENS CAN YOU FIND A TRADER JOES.” http://www.traderjoes.com, www.traderjoes.com/pdf/Trader-Joes-Stores.pdf.

Cacao and Climate Change: Implications and Recommendations

At some point in our lives, we all hear Forrest Gump’s famous quote: “Life is like a box of chocolates. You never know what you’re gonna get.” Climate change is no different. Mother Nature is currently harnessed by an increasingly volatile system that continues to alter our earth each and every day, and by failing to change our destructive ways, humans are allowing this force to perpetuate. According to NASA, average global temperature has increased by 1.7 percent since the late nineteenth century, and 16 of the 17 warmest years on record have occurred since 2001 (MacLennan). Additionally, carbon dioxide levels in the air are at the highest they have been in 650,000 years (MacLennan). Because all agricultural systems are sensitive to these changes, cacao and therefore chocolate are equally subject to adversity. Between the monstrous chocolate industry and diligent cacao farmers, countless constituents are at stake in this sensitive predicament. Given the escalating atmospheric constraints on cacao-growing regions due to the intensification of climate change, cacao farmers must carefully adapt while simultaneously seeking out responsible, innovative ways to keep the beloved cacao crop from becoming obsolete in the coming decades. 

Geographically, cacao can only grow within 20 degrees latitude both north and south of the equator, as illustrated by Figure 1 (Scott). As we learned from a course book, cacao trees flourish under strict conditions including high humidity, abundant rain, uniform temperatures, nitrogen-rich soil, and protection from the wind (Presilla 95). In short, cacao trees thrive in tropical rainforests. The vast majority of the world’s cacao is produced by smallholders, meaning those owning less than five acres of land (de Groot). Currently, there exist about two million smallholder farmers in West Africa alone, all of whom depend on cacao for their livelihoods (Schroth et al 231). Their vulnerability to climate change derives from the fact that they are predominately located in the tropics, but I strongly believe we should remain equally concerned by the various demographic, socioeconomic, and policy trends we discussed in class that hinder their capacity to adapt to change. The world’s leading producers are Côte d’Ivoire, Ghana, and Indonesia, and research highlighted in a recent report by the Intergovernmental Panel on Climate Change indicates that, under a “business as usual” scenario, those countries will experience a 3.8°F increase in temperature by 2050, which I suspect would connote a marked reduction in suitable cultivation area (Scott). 

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Figure 1. A geographical representation of the cacao belt, which spans across the equator.

Cacao will face a distinct challenge from the changing climate compared to that of many other crops. Coffee, for example, suffers direct harm from rising temperatures, but this paradigm alone won’t necessarily hinder cacao production (Jaramillo et al). Cacao cultivation areas in Malaysia, for instance, already endure a warmer climate than West Africa without any obvious negative effects (Scott). Upon briefly conversing with one of our guest lecturers after a guided tasting this semester, I learned that one of the greatest dangers to cacao arising from climate change is the increase in evapotranspiration, particularly given that higher temperatures projected for West Africa by 2050 are unlikely to be accompanied by an increase in rainfall (Scott). Evapotranspiration is the process by which water is transferred from the land to the atmosphere through both soil evaporation and plant transpiration (Handley). In other words, as higher temperatures coax more water from soil and plants, rainfall likely will not increase enough to offset the moisture loss. In order to avoid generalizing, one should note that this situation will not necessarily represent that of all cacao-growing regions; a study on a Nigerian research farm, for example, found that a combination of optimal temperature (84°F) and minimal rainfall (900 to 1000mm)—both less than the current yearly averages—would result in the best yields (Ojo et al 353). This mélange in the effects and remedies of climate change is a fantastic example of why farmers must adopt such a dynamic attitude moving forward.

As we approach 2050, rising temperatures will push the suitable cacao cultivation areas uphill. The optimal altitude for cacao cultivation in Côte d’Ivoire and Ghana, for example, is expected to rise from 350-800 feet to 1,500-1,600 feet above sea level (Scott). Generally, areas anticipated to show improved cultivation conditions look to be rugged, hilly terrain. But herein lies the problem: Ghana’s Atewa Range, for example, is a forest preserve where cultivation isn’t permitted, so inhabitants are left with the difficult choice of illegally gutting the forest to grow cacao in the name of global demand or preserving the natural habitat in which they live and losing their only source of income. Given that our class dedicated a substantial amount of time to discussing the already turbulent livelihoods of cacao farmers, I am troubled to see that they may soon face such an unfair quandary. One study examined nearly 300 locations in the world’s primary cacao-growing regions and found that only 10.5% showed increasing suitability for cacao production by 2050, while the remaining 89.5% showed the opposite (Scott). Figure 2 shows current suitability and projections for future conditions under a changing climate (Schroth et al 233):

1-s2.0-S0048969716304508-gr5

Figure 2. Maximum temperature of the warmest month under current and projected 2050 climate conditions in the West African cacao belt. The dotted area shows the extent of current cacao production as used for model calibration. The red lines show areas of cacao production.

The area depicted above is known as the West African cacao belt. Once entirely covered by the Nigerian lowland forests in the east and the Guinean lowland forests in the west, much of the area has now been converted to agriculture (Schroth et al 235). The world’s cacao industry depends largely on this belt for raw material due to the sheer volume of cacao produced as well as the abundance of high-quality bulk cacao that cannot be readily replaced by other cacao origins. As we learned in lecture, blended cacao typically goes to large industrial producers (unlike exclusive-derivation cacao, which exemplifies the traits of terroir through individual nuances), so this region is undeniably crucial to the future success of the large chocolate industry. Climate change aside, production in this region faces a wide variety of challenges, all of which we addressed in lecture: most trees are over-aged and therefore unproductive in the already small farms; low prices—until the recent price inflation—and variability make it difficult for farmers to afford costly inputs such as fertilizers; absence or insufficiency of technical assistance in most countries make maintenance difficult (Schroth et al 236). Perhaps while addressing climate change, whether internally or through foreign aid, actors should undertake these challenges alongside those directly associated with climate change itself.

Due in part to the aforementioned adversities, cacao farming has been a major driver of deforestation in West Africa, most notably in Côte d’Ivoire. Historically, cacao has been a “pioneer crop” grown after forest clearing, meaning that rather than replanting aging plantations, farmers have typically opted to migrate to the forest frontiers to establish new cacao farms. During the second half of the twentieth century, the cacao frontier moved from the drier east to the wetter southwest of the country, a migration fueled by massive immigration of prospective cacao farmers from the savannah (Ruf et al 101). From my perspective, it appears that the climate gradient was a major driver of these east-west migrations and that, by replacing forest with farmland over vast areas, cacao farmers contributed to the further drying of the climate in what appears to be a positive feedback loop. This is precisely the type of damage we as a civilization must avoid in the coming decades. In order to help facilitate a greater awareness of sustainability, governments and supply chain actors should discourage forest frontier dynamics by helping farmers adapt to environmental change through more intensive and diversified farming practices.

The question of whether water availability or maximum temperatures during the dry season will be more limiting to the survival, growth, and yield of cacao trees in a future climate is of particular importance when considering the design of climate resilient production systems. One highly efficient—and, in my opinion, the only practical—method of protecting cacao trees from high temperatures is through overhead shade from appropriately selected, spaced, and managed companion trees such as banana and plantain as seen in Figure 3 (Colina). This practice can reduce cacao leaf temperatures by up to 40°F, sequester carbon that would otherwise be lost from the soil, make cacao trees less vulnerable to pests, and provide nutrient-rich leaf litter as well as protection from wind and soil erosion (Rajab et al). With that said, adequate ventilation is also important as a complementary measure, as it helps to reduce the prevalence of fungal disease in cacao (Schroth et al 240). The general takeaway here is that farmers need to be properly trained such that they can correctly execute these methods.

_DSC3255_web

Figure 3. Young cacao plants in a nursery under shade trees in Mindanao, Philippines.

When considering shadow crops such as those pictured above, we must recognize that an expectation of severe water limitation during the dry season may complicate things. Under such conditions, there could eventually not be enough water available for both cacao and shade trees during the dry season, thereby stressing the trees and leaving farmers in a tough position. Although I feel this is an unlikely extreme, we should prepare for all possibilities. Temperature struggles aside, another mitigation strategy could be to provide cacao growers with selectively bred seeds that have superior drought resistance. Farmers could, however, be skeptical of genetically modified seeds given the stereotypically low trust between farmers and large agrochemical corporations such as Monsanto. While I am not sure how feasible this final point is given my unfamiliarity with the growing techniques behind these commodities, it may be beneficial for cacao farmers to raise animals or cultivate honey in order to spread climate risk (de Groot). In general, climate-smart agriculture—an approach that combines various sustainable methods under a climate-change umbrella—that assesses climate change-related risks and requirements of a farm and subsequently tackles those challenges using practices crafted for that particular situation is key to success in the coming decades.

In our class, we discussed industrial chocolate production as well as consumption, both practices that are generally decoupled from on-farm production. Fortunately, industrial chocolate corporations have a large incentive to help with damage control and mitigation. MARS is a fantastic example of corporate initiative: the company plans to slash carbon pollution from its products by 67 percent come mid-century (Simon). This includes reducing emissions from land use changes and agriculture, and the company has even gone a step further by offering resources to help farmers increase yields, though they don’t disclose any specifics (Simon). The five global titans of chocolate—Ferrero, Cadbury, Hershey, Nestle, and Mars—should work together with consumers and defy the ugly “Big Sugar” stereotype considering we all share a common enemy: climate change. In terms of consumers themselves, our research from class suggests that people should seek out responsible, sustainable companies that give fair treatment to farmers. Whole Foods and other specialty stores, for example, boast a great selection of fair trade and organic bars such as Taza, Chuao, and Endangered Species. Consumers who have already caught wind of the possible “cacao crisis” are understandably uneasy, but they’ll be happy to know that research suggests climate change will not have an effect on the taste of cacao—that is, assuming the crop isn’t wiped out entirely (Sukha et al 255). For further information, videos such as the following can help to spell things out in a more informative and empowering way:

Realistically, we simply have no way of accurately predicting what the future climate will look like. With that said, the cacao belt appears to have a strong differentiation of climate vulnerability across its latitudinal axis, with the most susceptible areas near the forest-savanna transition in eastern Côte d’Ivoire and Nigeria, and the least vulnerable areas in the southern parts of Ghana, Côte d’Ivoire, Liberia, and Cameroon. Farmers will face the challenging task of controlling as many factors as possible in a progressively erratic world, so I recommend they look towards specialized companies such as The Climate Corporation—a digital agriculture company that examines weather, soil, and field data to help farmers determine potential yield-limiting factors on their fields—while employing the many protective measures mentioned above. Moving forward will require a team effort that ranges across the chocolate production and consumption chains, but because most changes in climatic suitability are predicted to take place over a time period of nearly 40 years, we have a full generation of cacao trees and farmers to adapt.

So, who will win the fight: climate or chocolate? Let’s not leave it to chance.

 

Works Cited: 

Anga, Jean-Marc. “International Cacao Organization.” The International Cacao Organization; Cacao Producing and Cacao Consuming Countries, ICCO, May 2018.

Bunn, Christian, and Mark Lundy. “Bittersweet Chocolate: The Climate Change Impacts on Cacao Production in Ghana.” CGIAR Research Program, 2015.

Coe, Sophie D., and Michael D. Coe. The True History of Chocolate. 3rd ed., vol. 1, Thames & Hudson, 2013.

Colina, Antonio. “Cacao Developemnt in Davao Region.” Davao Integrated Development Program, 2014.

de Groot, Han. “Preparing Cacao Farmers for Climate Change.” Rainforest Alliance, EarthShare, 20 Sept. 2017.

Handley, Liam. “The Effects of Climate Change on the Reproductive Development of Theobroma Cacao.” ProQuest, vol. 1, no. 1, 2016.

Jaramillo, Juliana, and Eric Muchugu. “Some Like It Hot: The Influence and Implications of Climate Change on Coffee Berry Borer (Hypothenemus Hampei) and Coffee Production in East Africa.” PLoS ONE, vol. 6, no. 9, 14 Sept. 2011.

MacLennan, David W. “Our Changing Climate.” Our Changing Climate: Supporting Farmers to be Resilient in the Face of Changing Weather Patterns, Cargill, 2018.

Morton, J. F. “The Impact of Climate Change on Smallholder and Subsistence Agriculture.” Proceedings of the National Academy of Sciences, vol. 104, no. 50, 11 Dec. 2007, pp. 19680–19685.

Ojo, A.D., and I. Sadiq. “Effect of Climate Change on Cacao Yield: a Case of Cacao Research Institute (CRIN) Farm, Oluyole Local Government Ibadan Oyo State.” CABI , vol. 12, no. 1, 2010, pp. 350–358. CAB Direct.

Presilla, Maricel E. The New Taste of Chocolate. 2nd ed., vol. 1, Ten Speed Press, 2009.

Rajab, Yasmin Abou, and Christoph Leuschner. “Cacao Cultivation under Diverse Shade Tree Cover Allows High Carbon Storage and Sequestration without Yield Losses.” PLoS ONE, vol. 11, no. 2, 29 Feb. 2016.

Ruf, François, et al. “Climate Change, Cacao Migrations and Deforestation in West Africa: What Does the Past Tell us about the Future?” Sustainability Science, vol. 10, no. 1, 18 Nov. 2014, pp. 101–111.

Schroth, Götz, and Christian Bunn. “Vulnerability to Climate Change of Cacao in West Africa: Patterns, Opportunities and Limits to Adaptation.” Science of The Total Environment, vol. 556, 15 June 2016, pp. 231–241. ELSEVIER.

Scott, Michon. “Climate and Chocolate .” Climate.gov, National Oceanic and Atmospheric Administration, 10 Feb. 2016.

Simon, Rosie. “Climate Change Could Hurt Chocolate Production.” Yale Climate Connections, Yale School of Forestry and Environmental Studies, 19 Oct. 2017.

Stroman, Lee. “Rethinking the Cacao Supply Chain.” AgThentic, Medium Corporation, 16 July 2017.

Sukha, D.a., and D.r. Butler. “The Impact Of Processing Location And Growing Environment On Flavor In Cacao (Theobroma Cacao L.); Implications For ‘Terroir’ and Certification.” Acta Horticulture, no. 1047, 2014, pp. 255–262. ISHS.

Nestle Cocoa Plan: Not Quite Enough

Child labor in the cocoa industry has long been a hot topic embroiling nations, big chocolate companies, consumers, and more. Although some children may simply be assisting their family financially, many are victims of what the International Labor Organization defines as the “Worst Forms of Child Labor,” which includes work that is “likely to harm the health, safety or morals of children.” (ilo.org) In an effort to source sustainable cocoa and end the use of child labor in the cocoa industry, some big chocolate companies have devised their own plans and certification programs meant to indicate their commitment to the cause. The Nestle company in particular has branded itself as the big chocolate company that is doing the most to eliminate child labor (Nestle Tackling Child Labor report).  

Screen Shot 2018-05-03 at 1.33.32 PM.png

 

 

 

(http://www.childlaborcocoa.org/images/Payson_Reports/Tulane%20University%20-%20Survey%20Research%20on%20Child%20Labor%20in%20the%20Cocoa%20Sector%20-%2030%20July%202015.pdf)

Despite the recent efforts, the problem of child labor has actually gotten worse. In a study that was conducted in 2013 and 2014, the number of children aged 5 through 17 years who worked in dangerous conditions on cocoa farms in Côte d’Ivoire grew by 260,700 in just 5 years (Tulane Report). While Nestle has made a comparatively thorough analysis of the problem of child labor in their supply chain through the creation of their own independent certification plan, the Cocoa Plan, many of their methods are opaque or inadequate; therefore, the plan may vindicate Nestle to the public, but does not go far enough to actually eliminate child labor.

Recent outrage over the issue of child labor on cocoa farms can be partially traced to the 2000 film Slavery: A Global Investigation that details the dangerous working conditions on Côte d’Ivoire cocoa farms (True Vision). After the release of the film and “following pressure and outrage from civil society groups and media outlets, large chocolate and cocoa corporations –– including Nestlé –– responded by claiming that they did not know about the situation and, like the public, were concerned.” Despite this supposed outrage, “For the past 15 years, Nestle and its partners in the Cocoa Industry have been intensely resisting government regulation regarding eliminating WFCL in their global cocoa supply chain” (Wood 4). In this context of mixed signals and discrepancy between Nestle’s actions and what they publicly displayed,  Nestle launched their Cocoa Plan in 2009. The plan is both an initiative and certification program that aims to improve farmer training, plant propagation, and improve work conditions, especially for children (Nestle “The Cocoa Plan” 2009)

Screen Shot 2018-05-03 at 1.34.50 PM

(http://newspapers.digitalnc.org/lccn/sn92074055/1910-07-29/ed-1/seq-2/)

One part of the Cocoa Plan that is honorable, and stands in contrast with how Cadbury handled slave labor in its supply chain during the early 1900’s, is that Nestle clearly and quickly acknowledges that child labor is present in its supply chain. Nearly a century before the outrage that prompted Nestle to create its Cocoa Plan came concern that slave labor was present in the Portuguese West African cocoa farms that Cadbury sourced from. In response, Cadbury hired Joseph Burtt to investigate the issue. However, “Burtt’s report…appeared more than six years after Cadbury Bros. first learned that slave labor was used in the growing of cocoa beans in Sao Tome and Principe and four years after the company decided to hire an agent to visit Portuguese West Africa” (Satre 98). Cadbury and another chocolate firm, Rowntree, were concerned about the implications of releasing such a report that indicated their use of slave labor. Therefore, it took an unusual amount of time for Cadbury to publish its findings and admit to the problem. Even with the evidence, William Cadbury remained skeptical of the scope of the issue and “while he was against the use of slave labor, he did not equate the labor of Sao Tome to that of other forms of slavery reported in Africa” (Satre 19).

 

//players.brightcove.net/2111767321001/default_default/index.html?videoId=4780236677001#t=2m27s

(http://fortune.com/big-chocolate-child-labor/)

Rather than withholding the truth or questioning the reality of labor conditions in West Africa, Nestle admits in the Cocoa Plan that “We know there are children working on farms in Cote d’Ivoire in areas where we source cocoa. No company sourcing cocoa here can guarantee they’ve eliminated the risk of children working in their supply chain” (Nestle Cocoa Plan Better Lives). As the Fortune video indicates, big chocolate companies often claim plausible deniability when it comes to child labor since there are many middlemen that stand between them and the actual laborers. As Brian O’Keefe acknowledges in the video, consumers are now demanding that big chocolate companies like Nestle take responsibility (O’Keefe). Therefore, Nestle sets itself apart from other chocolate companies and appeals to consumers’ desire for transparency by admitting to the issue. However, even in their statement admitting responsibility, Nestle still inserts a phrase that absolves them from any actual wrongdoing. By claiming that there is no company sourcing from Cote d’Ivoire that can ‘guarantee’ that there is no child labor in their supply chain, Nestle admits to the problem, but does not admit to guilt. Nestle’s Code of Conduct prohibits child labor and Nestle’s Executive Vice-President for Operations admits that “The use of child labour in our cocoa supply chain goes against everything we stand for” (Clarke, Nestle Cocoa Plan Better Lives). Despite their adamant position against child labor, Nestle continues to source from areas where it is endemic. While the effectiveness of boycotts is debated, still sourcing from areas with areas known for child labor indicates that Nestle adheres more to its moral mission in speech than it does in action.

Screen Shot 2018-05-01 at 1.03.38 PM.png

(https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf)

 

Nestle’s methods in its child labor monitoring and remediation program are inefficient and the scope of the program is relatively minimal. Nestle advertises in its Cocoa Plan that “In 2017, 51% of children identified are no longer in child labour” (Nestle Cocoa Plan 2017). While this initially seems like a significant improvement, it is important to distinguished how and how many children are ‘identified.’ The method in which child laborers are identified is outlined in Step 2 of the remediation program: “A child is spotted (or self-declares) engaging in a hazardous activity” (Nestle Cocoa Plan 2017). This is an extremely inefficient method since spotting child laborers requires a large number of personnel traveling from farm to farm observing practices. Self-declaring is also an unlikely occurrence as some children may not know the dangers associated with their labor and if they did, they may be too scared to report anything as it might implicate their family. Therefore, the number of children actually identified by Nestle is likely relatively low when compared to the true number. The lack of detailed information in the Cocoa Plan around this issue was picked up by an investigative report from the Watson Institute at Brown University, which states that “The researcher is unable to decipher what proportion of Nestle’s co-ops have Child Labour Monitoring and Remediation Systems. This is problematic because it serves as a barrier to criticizing Nestle for not taking enough action” (Wood 10). Essentially, Nestle provides vague information to indicate that it is taking some degree of action, but the extent of its action and operations remains a mystery. Furthermore, The Cocoa Plan itself hardly covers a majority of Nestle’s Cocoa. In fact, only “Around a third of Nestlé’s total global cocoa supply is currently bought from producers covered by the Nestlé Cocoa Plan” (Wood 10). Therefore, it can be estimated that the areas covered by this child labor monitoring and remediation program are a similarly small proportion. Even cocoa that is completely certified under the Cocoa Plan is not a guarantee that it has not been produced using child labor. Nestle admits that “7,002 Children [were] identified working on farms or in communities covered by the Nestlé Cocoa Plan” (Nestle Cocoa Plan 2017). This strips the certification program of clarity and even some of its legitimacy when it comes to child labor, as Nestle wishes to eliminate child labor, but still allows cocoa made with it to pass their certification.

One strong aspect of the Cocoa Plan is its analysis of the barriers children in cocoa growing regions face in receiving an education. While education is certainly important to the well-being of the children, it is still not the most effective way to end child labor. Nestle began its school building program in West Africa in 2011 and has since built or refurbished over 42 schools (Nestle Cocoa Plan Better Lives). While this is certainly a laudable achievement, Nestle also recognizes that children face far more nuanced obstacles than simply not having a school building. One such obstacle for girls in particular is that “Many schools in Côte d’Ivoire do not have toilets. Girls find this particularly difficult as they have to go further into the bush to relieve themselves. There, they are at greater risk of being bitten by snakes or insects, and there have also been cases of girls being harassed” (Nestle Cocoa Plan 2017). The lack of toilets may cause girls to miss school more often and may negatively affect their performance when they are in school. Another key obstacle that Nestle identifies is the “lack of a birth certificate, which is compulsory for entry to secondary education. Since the start of the programme we have enabled 4,517 children to continue their education by providing them with a birth certificate” (Nestle Cocoa Plan 2017). Therefore, Nestle shows that they have a more in depth and comprehensive understanding of and action plan when it comes to education. They both address the lack of physical buildings, while also addressing challenges to attending school in the first place. However, one important statistic that is tucked away in the Cocoa Plan report is that 17.5% of children who attend schools in Cote d’Ivoire also participate in child labor versus 23.4% of children who do not attend schools (Nestle Cocoa Plan 2017). This is a relatively minor decrease and indicates that access to an education is not a panacea for preventing children from working. The children who go to school still have to work face a serious burden, indicating that child labor is not just a result of a lack of alternatives, but is a result of greater challenges.

The Cocoa Plan lacks a plan to implement a crucial method to ending child labor: ensuring that the parents can earn enough to support their family. A March 2018 report by Stop the Traffik notes that while Nestle provides farmers with training and help improving productivity, it “Has yet to commit to paying farmers more for their cocoa and does not currently have any long-term plans for a living income” (A Matter of Taste). Writer Beth Hoffman argues in her Forbes article, 4 Reasons Why Nestle Cocoa Plan is Not Enough, that “The only way to truly ensure children can go to school is to guarantee their parents a living wage” (Hoffman). Thus, Nestle has outlined an elaborate plan that helps farmers and childrens in a myriad of ways, except for perhaps the most effective way. While they publicize that they are committed to eliminating child labor, their actions again indicate that their words do not match their actions.
ChocolateCertifications

(Lecture Slides)

Another flaw of the Cocoa Plan is the fact that it is a certification program in the first place. Fairtrade, another certification that sets various environmental and social standards and aims to pay growers a higher premium for their crops, has high levels of trust and recognition among consumers in Europe and the USA (Globescan). Consumers may not readily understand or recognize the Cocoa Plan in the same way. This may complicate decision making for consumers who may simply begin to overlook certifications in general. Beth Hoffman argues that “With more than 200 “ecolabels” now available on products, it is impossible for consumers to know (let alone verify) that every seal or logo claiming sustainability is actually making a clear difference in the world” (Hoffman).  This issue of verification is important. Although Fairtrade has its own flaws, the fact that it is a 3rd party certification gives it legitimacy and a reputation as unbiased, which builds trust among consumers that the chocolate will actually benefit growers instead of just big chocolate companies.

In an economic system where companies sometimes have just as much agency and ability as a country to enact social and economic change, it is honorable to see the Nestle Company acknowledge the problem of child labor in the cocoa that it sources and outline steps it is taking to eliminate it. Although the Cocoa Plan may sound adequate to the general public, looking at its nuances reveals how some parts may be flawed, misleading, or incomplete. Overall, the Cocoa Plan does not seem to go far enough as it does not include some of the most effective ways of ending child labor. As the Nestle Cocoa Plan plays out, the ability for profit driven companies to effect social change will be put to the test.

Works Cited

2013/14 Survey Research on Child Labor in West African Cocoa Growing Areas. Report. School of Public Health and Tropical Medicine, Tulane University. July 30, 2015. Accessed May 1, 2018. http://www.childlaborcocoa.org/images/Payson_Reports/Tulane University – Survey Research on Child Labor in the Cocoa Sector – 30 July 2015.pdf.


A Matter of Taste. Report. STOP THE TRAFFIK Australia Coalition, 2018.


“Better Lives.” Nestle Cocoa Plan. Accessed May 01, 2018. http://www.nestlecocoaplan.com/better-lives/.


Clarke, Joe Sandler. “Child Labour on Nestlé Farms: Chocolate Giant’s Problems Continue.” The Guardian. September 02, 2015. Accessed May 01, 2018. https://www.theguardian.com/global-development-professionals-network/2015/sep/02/child-labour-on-nestle-farms-chocolate-giants-problems-continue.


Globescan. “High Trust and Global Recognition Makes Fairtrade an Enabler of Ethical Consumer Choice.” News release, October 11, 2011. Globescan. Accessed May 01, 2018. https://globescan.com/high-trust-and-global-recognition-makes-fairtrade-an-enabler-of-ethical-consumer-choice/.


Hoffman, Beth. “Love Chocolate? 4 Reasons Why Nestlé’s Cocoa Plan Is Not Enough.” Forbes. May 22, 2013. Accessed May 01, 2018. https://www.forbes.com/sites/bethhoffman/2013/05/22/4-reasons-why-nestles-cocoa-plan-is-not-enough/1.


Nestle. “Nestlé and Sustainable Cocoa ‘The Cocoa Plan’.” News release, October 2009. Nestle.com. Accessed May 1, 2018. http://www.nestle.com/asset-library/documents/media/news-and-features/2009-october/the-cocoa-plan.pdf.


O’Keefe, Brian. “Inside Big Chocolate’s Child Labor Problem.” Fortune. March 01, 2016. Accessed May 01, 2018. http://fortune.com/big-chocolate-child-labor/.


Satre, Lowell Joseph. Chocolate on Trial Slavery, Politics, and the Ethics of Business. Athens, OH: Ohio Univ.Press, 2005.


Slavery: A Global Investigation. Directed by Brian Woods and Kate Blewett. True Vision, 2000. Accessed May 1, 2018. https://truevisiontv.com/films/details/90/slavery-a-global-investigation.

Tackling Child Labor. Report. 2017. Accessed May 1, 2018. https://www.nestlecocoaplanreport.com/sites/default/files/2017-10/NestleCocoaPlanReport2017_EN_0.pdf.

Wood, Madeleine. An Investigation Into Nestle’s Efforts To Establish Credibility In Its Global Cocoa Supply Chain. Master’s thesis, Brown University, 2015. Watson Institute. 4-10.

“Worst Forms of Child Labour.” International Labor Organization. Accessed May 01, 2018. http://www.ilo.org/ipec/facts/WorstFormsoffChildLabour/lang–en/index.htm.

Two Sides Of The Chocolate Coin

While American and European consumers associate chocolate with romance, desserts, and luxury, the disparity between end product consumer and cacao producer is significant. One perspective is that northern consumers provide self-agency and opportunity through a free market economic exchange in an environment that provides few opportunities. While western Africa currently provides 75% of the world’s cacao (Coe &Coe, 2013) the African cacao grower has to rely solely on northern purchasers as they lack the economic resources to purchase, manufacture, or market their product. With labor as their only agency, the African cacao grower is in a disadvantaged position in the food production paradigm despite their high product yield. Corporate complicity in unethical labor, slave legacy that has left southern producers turning to raw materials for economic survival, and consumer apathy created by distance from the food supply chain have culminated in producing very opposing experiences for the cacao supplier and the chocolate consumer.

Success in Cacao

With the steady increase of cacao prices, the cacao-growing region of western Africa has seen steady socioeconomic growth in the industry for decades. According to “CNN Freedom Project,” an organization focused on labor practices worldwide, in 2008-2009 western Africa supplied more than 75% of the world’s chocolate, while Europeans and North Americans were consuming a roughly equal amount (2012). In their book Cocoa in Ghana: Shaping the Success of An Economy, Shashi Kolavalli, and Marcella Vigneri observe the steady increase of cacao prices have allowed for significant improvement via more investment in production yields through transport and infrastructure. (2012). Kolavalli and Vigneri further observe that so lucrative is the cacao production in Ghana  that positive socioeconomic influences of the crop, and improvement in western Africa’s poverty, have been significant by stating,

“economic growth has been solid, averaging more than 5 percent since 2001 and reaching 6 percent in 2005–06. Coupled with the effects of greater access to education, health services, and land ownership (World Bank 2008), this rate of growth has contributed to the near halving of the national poverty rate since the beginning of the 1990s, from 51.7 percent in 1991/92 to 28.5 percent in 2005/06” (p. 205).

For cacao growing countries in Africa, maintaining this resource is critical to prevent sliding backward economically in an already impoverished environment.

Who is Eating All the Chocolate?

According to CNN’s freedom project, northern countries are driving the demand for chocolate. In this breakdown for 2008-09, Europeans and North Americans were responsible for eating an equal amount of western Africa’s entire production, which is 75% annually of the world supply. In simple terms, if you live in the northern hemisphere there is a good chance you are consuming on average between 9 to 24 lbs. of chocolate per year. (Satioquia-Tan, J. 2015)

hershey27s_chocolates_in_store
The Swiss eat 24 lbs. of chocolate per person, per year. That’s roughly equivalent to eating half of a Hershey bar every day for one year (Maxim75, 2016)

World consumption of cocoa: 2008/09
Europe – 49.32%
North America – 24.22% (United States only – 20.19%)
Asia and Oceania – 14.49%
South America – 8.68%
Africa – 3.28%

The demand from northern consumers continues to increase steadily. In his paper, Cocoa production in West Africa, a review and analysis of recent developments, Marius Wessel projects necessary agricultural growth for western Africa to maintain its current supply when he states, “The International Cocoa Organization (ICCO) forecasts a 10 percent increase in the world cocoa production and a 25 percent increase of the cocoa price in the next decade. … If West Africa wishes to maintain its present world market share a 10 percent increase in production is needed in the next decade” (Wessel, M., 2015). This is significant in that considerable investment will be required to meet the growing demand, which in turn will offer more employment from land developing to harvesting; boosting the economy even further. The staggering contrast of chocolate consumption between northern consumers and southern producers however, in relation to race and geography is no accident.

A History of Disconnection

After the chocolate drink of Mesoamericans made it to Europe via Spanish colonists in the 16th century, popularity of the drink in Europe began to rise. When Spanish colonists exhausted the Mesoamerican population as a resource for labor, they turned to the middle passage across the Atlantic to Africa for labor to meet the demand (Coe & Coe, 2013). On a continent that functioned tribally with no formal governments, it was quite easy to enslave people into labor for the remainder of their life, which on average due to hard labor and dismal living conditions was about 7 to 8 years after enslavement (Coe & Coe, 2013). This of course, required massive quantities of slaves, which Africa had in abundance. In his book Sweetness and Power Sidney Mintz observes that by the 18th century, the European lower proletariat was adopting the culinary habits of the aristocracy as a way of establishing equality for people in lower social stations (p.181, 1986). The biggest promoter of chocolate consumption for the masses According to Coe & Coe in their book A True History of Chocolate was the industrial revolution when they state,

menier_chocolate_factory
The Menier Chocolate factory in Paris, France. Mechanized in 1830, and shortly after became France’s largest chocolate supplier. (Expressing Yourself, 2009)

“The Industrial Revolution, which changed chocolate from a costly drink to cheap food, [was] the driving force in this metamorphosis” (Coe & Coe, p. 232, 2013).

Before the industrial revolution the use of people from southern countries as a commodity for labor separated them from society and cultural habits of northern countries. Even had they wished to adopt the habits of their masters, there was no means or opportunity as a consumer base. Having never been ‘folded in” to European culture, they were completely disenfranchised as a chocolate consumer base. The exclusion of southern laborers and slaves from society as citizens, also found them ignored by the industrial revolution; leaving them to lag behind economically and industrially, unable to participate as consumers of chocolate.

State of Labor Today

After northern consumers developed a social conscience for disenfranchised populations and impoverished nations, one might be tempted to think everything has changed, but it has not. Still lagging from being on the outside of the industrial revolution, Cacao farming practices have changed little in the last hundred years. In villages of working adults there is a complete disconnect to their labor once it leaves the village. In her book Bitter Chocolate, Carol Off  tells of a village where all but the chief were ignorant of where the cacao went, none knew how it was used, and only one had ever tasted chocolate. Micheal and Sophie Coe argue that it is not only adults and families working, but that millions of children are trafficked and forced into slavery from neighboring countries (Coe & Coe, 2013). Off supports this claim by observing that slavery is alive and well  particularly in the Ivory Coast where child slavery is so common, it is a sub-industry of cacao with its own economy, as farmers finance networks to traffic children for forced labor who then suffer from starvation, disease and physical abuse while working on cacao farms (Off, C. 2006). While numbers of child slavery are at times sketchy and often disputed, no one denies it exists (Off, C. 2006).

flickr_-_dfid_-_uk_department_for_international_development_-_children_pictured_at_a_unhcr_food_distribution_point_in_liberia
Children from the Ivory Coast. Due to extreme poverty many children seek out work in cacao only to be abducted and worked as slaves. (DFID, 2011)

Consumers Grow Distant

sweets_vending_machine_window
The consumer vending machine selling prepacked processed chocolate adding a further degree of separation from labor to consumer. (Whitehouse, P. 2007)

While slaves grow cacao, consumers grow distant. Though southern laborers have not advanced industrially, this is not the case for northern consumers. The industrialization of food completely changed northern food culture. Through mechanization, transport, and refrigeration, the distance between consumer and food source has grown. Mechanization produced food en mass cheaply, allowing access to goods that were more accommodating to lower budgets, while transport and refrigeration allowed food to travel further than it had before. (Counihan & Van Esterik, 2013) The biggest game changer in food culture was the mechanization of canning and preservation. With better preservation, food sources began to change, ingredients began change, and soon we had processed and prepackaged food embraced by women everywhere for freeing their time and labor (Counihan & Van Esterik, 81-82, 2013). After two or three generations of eating processed food transported from faraway places, with lists of ingredients that are rarely inspected, consumers today know very little about their food, or even what it contains. They are not unlike their southern counterparts in this way who do not know where cacao goes, or what its use is after it leaves the village.

 

Distance Creates Apathy

Capitalist consumerism breeds competition, creating incentive to keep the consumer

cocoa_farming_in_ghana
Cacao farmer in Ghana with his crop before it is prepared and bagged to be sent to manufacturers to make chocolate. (Rberchie, 2014)

happy. As modern chocolate consumers in the north are far more concerned with inclusiveness, fair treatment, and food activism than previous generations, the power of the purchase is seemingly an easy solution to the poor working conditions and poverty that are still prevalent in the cacao industry despite its economic growth. Far removed from the supply chain, unaware consumers continue to purchase due to lack of transparency in food product, and manufacturers remain complicit in the absence of financial threat. Manufacturers however also have limited power. Even with strict purchasing policies, and government regulation it is still difficult to know if a supplier is using slaves without constant physical inspections (Martin, C. 2017), and blame shifts all along the supply chain making it easy for manufacturers to be complicit, and consumers to remain uninformed.  Lack of transparency in food sourcing, blame shifting in the industry, and distance from food sources, culminate to create a culture of apathetic food consumers.

How It All Comes Together

The dichotomy between cacao consumer and producer today began with early Europeans and European colonists who failed to view southern peoples as sovereign and instead as a voiceless labor resource. Excluded from global interaction, Southern populations failed to participate in cultural trends, shifts, and innovations that were transforming society and industry elsewhere. Non-participation in the industrial revolution left southern continents behind in what would become a global economy with no agency for economic competition; turning to natural resources and labor for economic survival in a state somewhere between hunting and gathering and industry with little opportunity for growth. While mechanization followed by technology has created decadence in northern populations as compared to southern countries, northern consumers are today ignorant of their food supply chain because of these advancements, and unaware of the poverty and labor practices of those supplying it. Lack of transparency in food products add to this distance, and northern Chocolate manufactures as well as governments are complicit in unethical labor practices, shifting blame along the food supply chain leaving those who are aware unsure of who to even hold accountable (Martin, C. 2017). While northern consumers today have more of a social conscience than their ancestors, the opposing lifestyles of the chocolate consumer and the cacao laborer have failed to come closer together over the last several hundred years due to a legacy of “othering,” and complicit corporate interests protecting their revenue stream that has created an apathetic northern food culture.

Where We Go From Here

Consumer awareness is growing. Projects like Fair Trade, CNN Project Freedom, End Slavery Now, Slave Free Chocolate etc., have been working hard to inform the public. Many consumers now seek out fair trade products when available, and appear willing to pay more for ethical practices. In their paper, Consumer Demand for the Fair Trade Label: Evidence from a Multi-Store Field Experiment ,  Hainmueller, Hiscox, & Seguiera state,

“Total sales of Fair Trade goods in the United States in 2011 amounted to roughly $1.4 billion (FLO 2012) … But the average annual rate of growth in U.S. sales of Fair Trade certified goods was close to 40% between 1999 and 2008” (2014).

Fair Trade is not without its problems, as certification can be costly and marginalizes the poorest producers, but it is a start, and one of few ways to access transparency of the food supply chain in a consumer market that provides no source-to-store product information. Legislators are also working to intervene in child slavery practices. Senator Tom Harkin and Representative Eliot Engen introduced a protocol to reduce trafficking in the cacao industry, agreed to by manufacturers and legislators from Ghana and the Ivory Coast as stated by the ILO, “that aims to reduce the worst forms of child labor by 70 percent across the cocoa sectors of Ghana and Cote d’Ivoire by 2020” (ILO, 2017). Currently Fair Trade and other transparent and ethical alternatives have not achieved mainstream mass production, making it difficult for a consumer to use the power of the dollar against corporate complicity even when they choose to. Raising awareness and creating a demand for ethical products can aid in ending consumer apathy by closing the information gap, and denting corporate revenue streams that, with some work, will promote less disparity between southern suppliers and northern purchasers.

 

Works Cited

 

Coe, S. D., & Coe, M. D. (2013). The true history of chocolate (3rd ed.) London, ENG.Thames & Hudson Ltd.

Counihan, C., Van Esterik, P., (Eds.). (2013). Food and culture a reader New York NY. Routledge, Taylor & Francis Group.

CNN Freedom Project (2012) Who eats the most chocolate?. Retrieved from:                          http://thecnnfreedomproject.blogs.cnn.com/2012/01/17/who-consumes-the-most-chocolate/

DFID, (2011) Children of the Ivory Coast [digital image].  Retrieved from Wikimiedia Commons Website: https://upload.wikimedia.org/wikipedia/commons/7/77/Flickr_-_DFID_-_UK_Department_for_International_Development_-_Children_pictured_at_a_UNHCR_food_distribution_point_in_Liberia

Expressing Yourself (2009) Menier Chocolate Factory. [digital media]. Retrieved from: https://commons.wikimedia.org/wiki/File:Menier_Chocolate_Factory

Hainmueller, j., Hiscox, M., Sequeira, S., (2014) Consumer Demand for the Fair Trade Label: Evidence from a Multi-Store Field Experiment. Retrieved from: http://www.hbs.edu/faculty/conferences/2014-launching-the-star-lab/Documents/FT_final_2_20.pdf

ILO, (2017) Africa: Child Labor in Cocoa Fields/ Harkin-Engel Protocol. Retrieved from:     http://www.ilo.org/washington/areas/elimination-of-the-worst-forms-of-child-    labor/WCMS_159486/lang–en/index.htm

Kolivalli, S., Vigneri, M. (2014) Cocoa in ghana: Shaping the success of an economy. Retrieved from http://siteresources.worldbank.org/AFRICAEXT/Resources/258643-1271798012256/Ghana-cocoa.pdf

Martin, C. (2017) Modern Day Slavery. Harvard Extension School. [Mar 22, 2017 Lecture].

Maxim75 (2016) Hershey Bars. [digital media] Retrieved from Wikimiedia Commons Website: https://commons.wikimedia.org/wiki/File:Hershey%27s_chocolates_in_store.

Mintz, S.W. (1986) Sweetness and Power. NY, NY. Penguin Books 1986

Off, C., (2006) Bitter Chocolate: The Dark Side of the World’s Most Seductive Sweet. New   York: The New Press.

Rberchie (2014). Cacao farmer [digital media] Retrieved from Wikimiedia Commons Website: https://commons.wikimedia.org/wiki/File:Cocoa_farming_in_Ghana

Satiodqua-Tan, J (Jul, 2015) Americans eat how much chocolate?. Retrieved from:             http://www.cnbc.com/2015/07/23/americans-eat-how-much-chocolate.html

Wessel, Marius (Dec, 2015). Cocoa production in west Africa, a review and analysis of recent developments. NJAS-Wageningen Journal of Life Sciences, 74-75, 1-7. doi:                 https://doi.org/10.1016/j.njas.2015.09.001

Whitehouse, P.  (2007). Vending machine [digital image]. Retrieved from Wikimedia Commons Website: https://commons.wikimedia.org/wiki/Category:Mars_Bar

 

Experiences of a Cocoa King

I recently spoke with my uncle, Ronald D. Waugh Jr., who served as Vice President of Business Development for W.R. Grace Cocoa and later Archer Daniels Midland from the years 1993 to 1999. W.R. Grace Cocoa had factories in Amsterdam and Wisconsin, and he worked in both locations over the course of his career. In our conversation, he spoke about the intricacies of supplying cocoa products to large clients like Nabisco and Unilever, as well as his experience visiting their business partners in the Côte d’Ivoire (pictured below). When he left in 1999, he estimates that the company was processing roughly twenty-five percent of the world’s cacao. Although his company took corporate social responsibility seriously and was regarded as a progressive employer by many of its workers at the time, he acknowledges that these terms have taken new meaning in modern times. This new level of social awareness is especially evident in Portland, Oregon, the city he now calls home.

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Courtesy of Ronald D. Waugh — he is on the right (circa 1999)

W.R. Grace Cocoa’s European headquarters in Amsterdam specialized in the processing of cacao beans and chocolate products including liqueur, cocoa butter, cocoa cakes, and cocoa powder. For sourcing, Grace turned towards cacao growing regions in countries throughout West Africa such as Ghana, Cameroon, and Côte d’Ivoire, as well as East Asian countries like Indonesia. At its height, Grace Cocoa sold more than $700 million in industrial cocoa and chocolate products around the world annually (New York Times 1996). Grace was able to do so because of the diversity of their clients’ products. Their needs differed based on the intended use of the cocoa, and my uncle facilitated many of these corporate relationships.

One of the first distinctions he made in our conversation was that between actual chocolate, and what is considered “chocolate flavor.” Chocolate liqueur, which is made from the pressing and grinding of cacao beans, is divided into two main substances: cocoa and cocoa butter. In order for a product to legally labeled as containing chocolate in the United States, cocoa butter must still be present. Otherwise, the product must be denoted as “chocolate flavored.” Fat-content impacts the flavor of the products, and more legal standards of identity determine these ratios. Low-fat content chocolate must contain between ten and twelve percent cocoa butter, while high-fat content chocolate must contain between sixteen and eighteen percent cocoa butter (Waugh 2017). Because cocoa butter is the more expensive ingredient of chocolate, Grace Cocoa was able to generate savings for their clients when they could optimize the fat content. Sometimes, this also required the blending of cocoa from different batches, the processes of which also had to be developed in their labs. According to Waugh, they would aim for 10 percent fat-content in their low-fat chocolate products, and sixteen percent in the high-fat chocolate products, as to fulfill fat-content standards, and minimize input costs for their clients (2017).

Common substitutes for cocoa butter are forms of vegetable fats and oils. These substitutes can be made for reasons of cost, as cited above, but also desired physical properties of the final product, such as melting point or mouthfeel. True cocoa butter melts at the temperature of the human body, eighty-six degrees fahrenheit, while compound chocolate has a higher melting point (Muir 2015). The higher melting point of these coatings make them ideal for use on ice cream products, compared to a candy which the consumer will eat right away. Appropriately, Grace Cocoa was contracted to supply the chocolate coatings for Unilever’s Magnum ice cream bars, which were made from Grace’s variety of chocolate flavorings. Other attributes of cocoa also came to be important to Grace Cocoa’s clients.

Unilever’s Magnum ice cream bars (left) and Nabisco’s Oreos (right)

Other factors clients cared about included grittiness, viscosity, and color. Adjustments in these could save or cost their customers money over time. One example he cited, was if the chocolate was intended to go on top of oatmeal cookies, the smoothness of their chocolate did not matter as much. The oatmeal would mask any grittiness in the chocolate, and they could save money in the production process, which Grace Cocoa would pass onto their customers. Viscosity of the chocolate Grace sold was also important, as it would come into direct contact with the customer’s machinery. A chocolate liqueur that had too much viscosity could potentially clog up a client’s machines, leaving them unable to produce their final products. Finally, the color consistency of the cocoa powder was of utmost importance. Grace Cocoa was one of the only companies that had the resources to consistently produce black cocoa powder — as result, they developed an exclusive relationship with Nabisco to provide the cocoa for their iconic Oreo cookies. The popularity of these international brands puts pressure on companies like Grace Cocoa in order to satisfy the world’s demand.

Demand for chocolate is relatively inelastic. In my uncle’s experience at Grace, their predictions for the growth of demand in a particular country would roughly mirror population growth (Waugh 2017). If the population was expected to grow by one percent, they could also expect a one percent growth in the demand for chocolate products. The only exception to this rule being Asian countries, where chocolate only caught on through the cultural practices of gift-giving. As result, marketing strategies are different in Asia. Authors of the book, The Economics of Chocolate explain, “foreign chocolate makers devote much in advertising and packaging efforts to promote chocolate as a gift that symbolizes love and friendship” (Squicciarini and Swinnen 2016). Waugh says that he and his colleagues used to joke, that if they could get every person in China to eat one chocolate bar per year, they would all be able to retire. With demand being predictable and constant, any challenges that those in the cocoa industry would face almost always came on the supply side.

Managing the supply of cacao was paramount to Grace Cocoa’s success. Cacao is a notoriously difficult crop to grow, and its successful growth is subject to various environmental factors. The author of Bitter Chocolate: The Dark Side of the World’s Most Seductive Sweet, explains the variables likely to impact worldwide cacao supply:

“The quality of beans, the capricious rains, the unpredictable harvests, the cost of pesticides, the threat of witch’s broom (a disease of the Theobroma tree), the see-saw prices and the exorbitant government taxes. These farmers know everything about the difficulties of growing cocoa in this region” (Off 2008).

Cacao rose to prominence as a cash crop in West and Central Africa due to the regions’ favorable growing climates. In these areas, politics have become greatly intertwined with the cultivation of cacao, and consequently many hurdles and question marks exist for the villages who make their livelihood farming cacao. Companies that must meet the world’s demand for cacao, like Grace Cocoa, are forced to mitigate the risk of fluctuations in supply by sourcing their beans from African business groups with ties across their countries, instead of the farmers themselves. My uncle worked directly with these people, and even visited Côte d’Ivoire periodically throughout his time working in the industry.

In his visits to the Côte d’Ivoire, Waugh and his colleagues frequently interacted with figures like Pierre Billon, father of the current Ivorian Minister of Commerce, Jean-Louis Billon. Pierre Billon, who has since passed away, is described as, “a tycoon and close confidant of Côte d’Ivoire’s founding father, Félix Houphouët-Boigny” (Abidjan 2013). Navigating these relationships was challenging, because unlike in Western countries, these were the types of men which influenced everything within the country, even on a governmental level. On one of his trips, my uncle was awarded an officer medal from Côte d’Ivoire’s Ordre de Mérite Agricole, or the Order of Agricultural Merit. Admittedly, he said this was fun to receive, but he also acknowledges this gesture may have been an attempt to warm up to him. He was able to visit several farms and see the harshness of the wilderness, but he never expected the modern revelations that more sinister practices were taking place.

Waugh describes the cacao production he saw within the Côte d’Ivoire as much more “artisan” than plantations he’d seen in other parts of the world like Indonesia (2017). Plantations didn’t exist in Côte d’Ivoire, or at least he wasn’t shown them. It was explained to Waugh that primarily Lebanese men called pisteurs, would travel the treacherous terrain to the farms around the country in order to collect the cacao beans. Carol Off explains her experience navigating Côte d’Ivoire’s bush country, “Tangled vines and shrubbery encroach on both sides of our vehicle while we push through what resembles a dark, leafy tunnel. Constant precipitation — a perpetual cycle from warm mist to torrential thundershowers to steam — seems to stimulate the new jungle growth before my eyes” (Off 2001). The density of the unforgiving wilderness seemed to distract from the idea that forced labor could exist in the area.

Another circumstance which may have covered up the forced labor practices to visitors like my uncle, was the small size of the cacao farms within the country. Duguma, Gockowski and Bakala explain, “In the humid west and central Africa, cacao (Theobroma cacao Linn.) is one of the most important cash crops and it is grown largely (> 80%) by the small-scale farmers” (2001). The average farm size is only 2.5 hectares, or just over 6 acres (see table below). Waugh explained that the farms he saw were also home to animals like pigs and chickens. Although it never crossed his mind that inhumane conditions could’ve existed, he does admit that he feels somewhat complicit in the things that were happening (2017). Looking at the larger picture of the cocoa processing operations, both Grace Cocoa and Archer tried to spread out production means, in turn helping several regions throughout the world.

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Source: Federation of Cocoa Commerce (FCC)

Waugh says that production operations were based out of Amsterdam, because the Netherlands had readily available means of processing the cacao beans. The technology that they relied to do so was ancient, and it was the windmill. Grace Cocoa used the means of production that was convenient, and because much of the world’s cacao was entering Europe through Amsterdam, it simply made sense to station their operations here. Waugh says he was often asked why Grace or Archer Daniels did not build processing plants in Africa — and his response? They did. In 1997, following the acquisition of Grace Cocoa, ADM became a shareholder and later the outright owner of Union Ivoirienne de Traitement de Cacao (Unicao). Unicao, a local cocoa trader and processor owned a plant in the city of Abidjan (Squicciarini and Swinnen 2016). Photos of the factory can be seen below. Having these operations within the country certainly cut some of their overhead costs of shipping unprocessed beans, but it also limited their supply to Ivorian cacao. The company was forced to blend their cocoa cakes in this factory, and Waugh says this worked for some applications, but not all.

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Photos courtesy of Ronald D. Waugh (circa 1999)

Conditions in communities throughout Côte d’Ivoire are still rough today, but Grace and later Archer, did what they could to help out at the time. Carol Off writes, “The community’s livelihood comes from growing “the food of the gods,” but this is a long way from paradise. None of the children here go to school, and there are no services — no electricity, no phones, no clinics or hospitals” (2008). Waugh explained that both Grace and Archer were regarded as progressive employers in the Côte d’Ivoire. In the city where their processing plant was located, they built several schools and a medical clinic. They also provided housing for the African managers of their factory. Community members believed that they were a fair employer and as result, both parties felt better off because of the balance of loyalty.

In the era of the internet, corporate responsibility has gained a lot of prominence. Perhaps, it is because heightened transparency has increased the accountability of corporations. One brand that brings that close to home (literally and figuratively) for my uncle is called Tony’s Chocolonely. With locations in Portland, Oregon, and Amsterdam, the brand directly sources their cocoa from farmers in Ghana and Côte d’Ivoire. The reason? They want to ensure that the cacao is not grown, harvested, or processed by slave labor in any way, shape, or form (see link below). At one point not too long ago in history, corporate responsibility simply entailed treating employees, communities, consumers and the environment with respect. Building housing, schools and clinics would’ve been considered going above and beyond one’s obligations. In today’s globalized world, that may not be enough. I don’t think that means any firm in particular was in the right or in the wrong, but future generations have a responsibility to learn and grow from history. I’m grateful that through this project, I was able to learn more about the complexities chocolate production through my uncle’s expertise and experiences.

Tonys

http://www.tonyschocolonely.com/us/about-us/how-it-al-began/

Works Cited

Abidjan, A. R. “A Rising Star.” Blog Post. The Economist. The Economist, 3 May 2013. Web. 5 May 2017.

“Archer in $430 Million Deal to Buy W.R. Grace Cocoa Unit.” New York Times, Dec. 24, 1996. pp. 1, ProQuest Historical Newspapers: The New York Times.

Duguma, B. Gockowski, J. & Bakala, J. “Smallholder Cacao (Theobroma Cacao Linn.) Cultivation in Agroforestry Systems of West and Central Africa: Challenges and Opportunities.” Agroforestry Systems 51 (2001): 177-88. Springer Link. Web. 5 May 2017.

Muir, April. “Candy Making: Facts about Chocolate Compound Coating.” Sephra. Sephra, 03 Oct. 2015. Web. 05 May 2017.

Squicciarini, Mara P., and Swinnen, Johan. “Chocolate Brands and Preferences of Chinese Consumers.” The Economics of Chocolate. Oxford: Oxford Univ, 2016. N. pag. Oxford Scholarship [Oxford UP]. Web. 5 May 2017.

Off, Carol. 2008. Bitter Chocolate: The Dark Side of the World’s Most Seductive Sweet. pp. 1-8, 119-161

Waugh, Ronald D., Jr. Telephone interview. 3 May 2017.