Tag Archives: fairtrade

Modern Kings: Consumers in the Chocolate Aisle

(https://www.flickr.com/photos /lyza/49545547 )

Grocery stores, supermarkets, food marts, or whatever you call them, the places where millions of Americans get their food each week, are crucial to a vibrant nation.  While their presence influences the economy among many other sectors, this post will examine their relationship with consumer choices.  Modern grocery stores sell much more than food—beverages, hygiene and cleaning supplies, magazines, pharmaceutical goods, alcohol, clothing, gasoline, pet supplies, household items—the list goes on and on.   In 2017, the average number of items carried in a supermarket was over 30,000 (“Supermarket Facts”).  Although there are many products, shelf-space at grocery stores is nevertheless finite, leading to extreme competition among manufacturers to get their products in front of Americans.  After decades of this competition a short list of conglomerates dominate both the grocery store brands and the manufactures that supply them.  These few entities have tremendous influence and are involved in many industries.  An excellent example of this market penetration is the chocolate industry.

Mars, Mondelez, Ferrero, Nestle, and Hershey “dominate the mature markets of Europe and North America” and capture nearly two-thirds of global chocolate market share (Leissle 73-74).  This percentage is staggering, and a quick trip to CVS confirms the dominance.  The image above shows the traditional chocolate selection at the local CVS store in Cambridge, MA and each of The Big Five has a large presence.  Mars brands include Dove, M&M’s, Twix, Milky Way, and Snickers.  The Mondelez brands are Toblerone, Cadbury, and Oreo.  Ferrero surprisingly only has one brand in the pictures which is Butterfinger.  Nestle owns the brands Rolo, Reese’s, KitKat, Crunch, and Raisinets despite some of these brands produced by Hershey here in the United States.  Lastly, Hershey brands are many—Hershey Kisses, Heath, Reese’s, York, Almond Joy, Brookside—just to name a few.  Each of these brands comes in countless varieties and there are over easily several hundreds of bags of chocolate in each store.  So, chocolate is big business, but there is much more to the industry.   Careful analysis of this curated selection of chocolates reveals much more than what meets the eye in an ordinary trip to the grocery store. 

The adventure exploring this multi-faceted industry begins in a surprising place, the non-traditional chocolate selection in the same CVS store.  Aptly titled “Premium Chocolates,” this stand is much smaller and contains more expensive and more exclusive brands.  This premium selection includes only a handful of brands which provide a stark contrast to the brands above.  Ghirardelli, Russell Stover, Whitman’s, and Lindt’s Excellence, are the most prominent and all owned by Lindt & Sprüngli.  Also making an appearance are Ritter Sport, Endangered Species Chocolate, and Turtles.  There are only two Big Five brands—Raffaello and Ferrero Rocher—both which are owned by the company of the same name, Ferrero.  This display encourages the consumer to associate these chocolates with special occasions, luxury, health, romance, extravagance, and celebration, all events worth the companies hope consumers will splurge for.  Intense Dark, Irresistibly Smooth, Salted Caramel Cascade, Hazelnut Heaven, Sea Salt Soiree, Blood Orange Sunset, Raspberry Radiance, Cherry Tango, 90% cacao content, Rainforest Alliance Certified, Non-GMO verified, gluten free, and numerous other slogans and labels all indicate this chocolate is for the advanced palate and educated consumer.  However, more than a label is often needed to convince customers for the surcharge.  Three common avenues of getting higher prices are trade certifications, better cacao quality, and retail product differences.

First, trade certifications are stamps of approval from agencies that generally commit to serving a mission like paying higher cacao prices to farmers, working to end child and forced labor, helping develop community infrastructure in Africa and other cacao-growing regions, and many more.  So many organizations with so many different names and goals pose a difficulty to consumers trying to select which certification is best supporting the industry.  To give an example, one of the most popular is Fairtrade, which is overseen by Fairtrade International.  As Kristy Leissle explains, “Fairtrade International is an intermediary between labeling organizations and producer organizations.  Labeling organizations certify that chocolate companies comply with Fairtrade price terms, and that producer organizations comply with Fairtrade producer terms” (Leissle 141).  These terms touch on working conditions, the environment, sustainability, child labor, discrimination, and more.  The producers who meet these the necessary conditions and pay a certification fee receive a Fairtrade Minimum Prize on all cocoa sold in return.  While it sounds good in theory, issues arise in practice like the price floor not rising quickly enough with inflation and other ingredients in bars not being certified yet taking advantage of the Fairtrade premium.  As one author explains “I do not challenge the sincerity and ambition of [the Fairtrade] approach, nor the purity of its motives,” but she continues and emphasizes that Fairtrade is “the most recent example of another sophisticated ‘scam’ by the ‘invisible hand’ of the free market.  This noble endeavor for the salvation of the free market was tamed and domesticated by the very forces it wanted to fight” (Sylla 18).  Nevertheless, however misguided a consumer’s perceptions may be and despite procedural problems like those raised by Sylla, trade certifications like Fairtrade are working towards higher profits for vulnerable members of the cacao supply chain and are a means for brands to demonstrate why to pay more for chocolate bars. 

Another way these luxury companies convince consumers to pay more for chocolate is the quality or type of cacao, and in this case the classification of the plant species it comes from.  In order to understand this specification, some historical context and geography is provided.  First, criollo, forastero, and trinitario are the three main types.  Criollo is most associated with the original Mesoamerican cacao plants, distinguished by “long, pointed, warty soft, and deeply ridged pods which contain seeds with white cotyledons.”  Forastero is most associated with plants that originated in South American and Africa which have “hard, round, melonlike pods, and the seeds have purplish cotyledons” (Coe & Coe 26).  From this description it follows that criollo cacao is harder to produce, and it is with fewer pods and higher disease susceptibility.  However, with this additional work and higher risk comes a greater reward in the form of better flavor and improved aroma.  This is compared to forastero which is hardier but looks, tastes, and smells different.  In fact, forastero is often translated as “strange” or “foreign” (Leissle 164).  The remaining category, trinitario, is a hybrid of these two varieties that balances the “desirable vigor of the forastero plant with the superior quality of the criollo bean” (Coe & Coe 26).  This simple classification system has faced challenges in recent years as scientific studies claim the existence of many more varieties.  Nonetheless, with this still as the predominant classification, criollo is found only Mesoamerican regions, forasteros mainly in South America and Africa, and trinitarios in North America, South America, Africa, India, and the Philippines/Indonesia region.  For the 2016-2017 season, the African countries of Ivory Coast, Ghana, Cameroon, and Nigeria were forecast to comprise about 71% of world cacao production (Leissle 42).  In addition, it is commonly estimated that forastero provides more than 80% of the world’s cacao crop (Coe & Coe 26).  With its clear production advantage and preference by large cacao conglomerates, forastero thus comprises most of what is known as bulk cocoa.  With this historical context and geographical positioning, it is easy to see how both producers and consumers would pay a premium for criollo chocolate varieties. 

The third means to add value addressed in this post is in the handling of the cacao, the machinery used in processing, or the recipe used to make the retail product.  Once again, it is important to essential to have background knowledge on the industry, from a comprehensive cacao vocabulary to an intricate understanding of the many important steps that lie between the cacao tree to final chocolate bar.  First, there are several important terms to clarify for this post.  These definitions are largely sourced from the 2019 spring semester of the Chocolate, Culture, and the Politics of Food course at Harvard College.  Cacao pods refer to the large and colorful fruits that grow on the trunks of the cacao trees.  The three major types are described in the above paragraph.  The cacao beans are the seeds inside of this pod, covered by the cotyledon which is a white, often sweet, pulp that connects the beans.  The cacao shell or husk is the outer layer of the bean, while the nib is the internal, dried, and fully fermented portion we associate with chocolate.  Chocolate liquor is the what forms from the ground cacao nib.  This liquor has two parts, cocoa butter which is a waxy ivory-colored fat and the cocoa powder which is what remains.  Finally, Dutch-process cocoa refers to the powder if it undergoes alkali treatment to neutralize the harsh acids found in the original cacao.   Also, to briefly review the process, the first step is to have ripe cacao pods on cacao trees.  This is difficult because cacao trees only grow in a range near the equator and it takes roughly five years for a tree to bear fruit.  These ripe pods must be removed carefully to avoid damaging the trunk.  Next, the cacao beans and pulp are removed so that the fermentation process can begin.  This process takes usually takes about a week and often involves several stages.  Fermentation can also occur in a variety of containers, from a makeshift pile of leaves to coolers to wooden boxes.  After this stage is complete, the beans move on to drying which also lasts about 7 days.  The beans are then sorted and bagged before they are transported to the manufacturing facility.  The first step here is to roast the beans and then a process called winnowing where the bean is deshelled, and the cacao nib is separated from the husk.  This nib is ground to form the chocolate liquor and then a hydraulic press extracts the cocoa butter.  One of the final steps before molding and wrapping the bar is conching which aims to evenly distribute the cocoa butter and improve the texture of the chocolate. 

Specialty producers understand the cacao plant and the process and seek high-quality materials or develop mission-driven processes in making unique bars.  The uniqueness and craft can enter at many, nearly all the stages along this supply chain.  Some companies embrace the bean-to-bar model and begin by choosing select cacao pods or varieties, and proceed to oversee fermentation, drying, roasting, and more, customizing every stage until the finished product.  These slight differences can have large impacts on the final taste and other attributes of the bar.  The video above highlights Phil Landers of Land Chocolate, a bean-to-bar company based in London.  Other companies set standards for the bean variety, type and length of fermentation and drying, etc. and then focus on the recipe or the work in the kitchen.  Craft chocolate makers produce far fewer batches or quantities of chocolate and thus tend to focus on fine details more effectively than the commodity cocoa supply chain and companies.  In short, specialty chocolate confectioners try to extract the natural flavors of the bean and experiment with unique processes and flavor combinations, while large companies order beans in bulk and strip all the cocoa down to a uniform powder that can be combined with traditional ingredients (sugar, milk, and butter) to make a consistent, inexpensive, candy staple.  They are nearly two distinct industries, each with its own advantages and disadvantages, connected by the thread of making chocolate.

An examination of Fairtrade, the three types of cacao, and the chocolate-making process provides a better understanding of the differences between the premium chocolate section and the traditional chocolate section in CVS.  The premium section takes advantage of each of these paths while the conventional selection almost exclusively offers Big Five chocolate brands.  While there is insufficient room to analyze the chocolate selections of other specialized, higher-end grocery stores or even chocolate-exclusive shops in this blog post, the differences and the attributes discussed here are likely to be amplified.  With this new enhanced understanding, consumers can now enter the candy aisle with more confidence of what some products are and what they are associated with.  Sidney Mintz suggests a challenge to the conventional “we are what we eat” mantra; “In understanding the relationship between commodity and person, we unearth anew the history of ourselves” (Mintz 211-214).  Knowledge and money are power, and consumers can make choices that will transform industries as we know them, should they choose to.  Maybe one day the conventional chocolate selection will look more like the premium offering in CVS today and the cacao industry will no longer suffer from the many issues it currently battles.  This transformation can start one consumer at a time.  So, the next time you enter the grocery store realize the influence you have.  If you won’t take my word for it, listen to Bill Gates—”When I walk into a grocery store and look at all the products you can choose, I say ‘My God!’ No king ever had anything like I have in my grocery store today” (Kurtz & Boone 72).

Works Cited

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

Kurtz, David L., and Louis E. Boone. Contemporary Business. South-Western Cengage Learning, 2009.

Landers, Phil.  “Bean to Bar – Meet London’s Single Origin Chocolate Pioneer.” YouTube, Design Milk, 22 Jan. 2018, https://www.youtube.com/watch?v=D3QjYCZ2-xs.

Leissle, Kristy.  Cocoa.  1st ed., Polity Press, 2018.

Lyza.  The New Fred Meyer on Interstate on Lombard, https://www.flickr.com/photos /lyza/49545547

Mintz, Sidney W. Sweetness and Power: The Place of Sugar in Modern History. Penguin Books, 1986.

“Supermarket Facts.” The Voice of Food Retail, Food Marketing Institute, www.fmi.org/our-research/supermarket-facts.

Sylla, Ndongo Samba. Fair Trade Scandal: Marketing Poverty to Benefit the Rich. 1st ed., Ohio University Press, 2014.

Returning To the Basics: Grenada’s Chocolate Revolution

Chocolate is a universal product. Everyone knows this, yet no one can avoid it. No matter what you do at least a few times a day you come across someone selling, advertising, eating or talking about chocolate. The food is so popular that it has become ingrained as a staple in modern society. However, while being a staple of society, most people do not know the complexities behind what it takes to grow, harvest and trade chocolate. Companies fight on a daily basis to find the best cacao for the lowest price. Unfortunately, this pushes chocolate makers and providers towards ingenuine and sometimes unethical practices in order to compete within the market such as child labor, un-fair trade, in-genuine ingredient use and poor environmental impact. These have become major critiquing points for the chocolate industry. The existence of these practices shows how the present day chocolate industry has fallen out of touch with the unique flavor of chocolate, the personal relationships between farmer and consumer as well as with the environment that provides this product. Though many companies participate, in some way or another, in these unethical practices for the sake of convenience or monetary ease, there is a rising number of companies that are devoted to fair practices, high quality ingredients and environmental sustainability. One of these companies is the Grenada Chocolate company, a small group dedicated to setting an example of what chocolate production should be like through their high-quality chocolate, relationship with farmers and dedication to environmental sustainability.

 
grenada

The Grenada Chocolate company was established in 1999 by Mott Green (born David Friedman), Doug Browne and Edmond Brown who had the idea of creating a cooperative amongst Grenadian chocolate makers.1 The company is the first “Tree to Bar” chocolate company to be established in Grenada and prides themselves on fair practice and on the amount that they give back to the local economy of the village of Hermitage in St Patricks. GCC makes their award-winning chocolate using trinitario cacao beans and focuses on creating dark chocolate bars of various percentages and combinations. The story of GCC is very much linked to the story of its founder, Mott Green, who set out to create an ethical chocolate company after thinking about and seeing all the injustice that is committed while people enjoy chocolate without a clue that these injustices occur. After much contemplation, he and his partners bought a small abandoned building in the village of Hermitage and transformed it into a chocolate factory6. This was the beginning of the Grenada Chocolate Company.

In order to combat the ethical challenges within the chocolate industry, he created the GCC and established it as a bean to bar company, a company that makes their chocolate products straight from the cacao beans instead of melting purchased chocolate from a chocolate maker. This has allowed GCC to have control over their whole chocolate making process and empowers them to treat and compensate their workers fairly, something that is a current problem within the cacao industry. As a small company that lies outside the pressures of the modern cacao company Mott Green designed for GCC to be an ethical chocolate company that returns to the basics of chocolate making and selling treating both employees and the environment with respect while creating high quality chocolate in the process.

As such a company GCC has been able to find success while also keeping balance all the important relationships that are a part of chocolate production and showing that it is possible to be both ethical and successful in the chocolate industry. I will discuss a few of these relationships and offer examples as to how GCC successfully navigates them.

Dedication to Wholesome Ingredients

 One rising debate within the chocolate industry is the question of whether the existence of milk chocolate and corporation sized candy companies (like Mars and Hershey) have caused people to become accustomed to non-natural ingredients and whether that has led to a decreased appreciation and knowledge of the cacao plant and its varieties. On its own milk chocolate has no faults. However, those who only eat milk chocolate will miss out on the numerous amounts of flavor that comes with dark chocolate and how each type of cacao bean develops different tastes. Even some dark chocolate companies fill their bars with unnatural preservatives and flavorings that take away from the flavor of the cacao bean itself. This shows a disconnect in the relationship between chocolate producer and the cacao bean. While some companies do this in order to cheaply mass produce chocolate products, other companies believe that it is the job of the chocolate producer to work with the cacao and allow its various tastes to be highlighted instead of hiding it in a flood of added ingredients.

 

GCC does well in being an example of this philosophy and maintaining this balance, as they are devoted to creating chocolate with genuine and natural ingredients in ways that enhance the flavor of the cacao bean. In an effort to maximize the flavor from the cacao bean, GCC grows, ferments and processes their beans on-site (hence the bean to bar status). This allows them to have control of the fermenting process and the flavor profile of their beans while using fresh cacao beans instead of shipped ones allows their chocolate to have a much more intense flavor1. The GCC also uses organic raw sugar and vanilla as the sole sweeteners of their chocolate. In addition to its natural flavors, GCC chocolate is certified organic and free from: animal products, nuts and nut derivatives, milk and eggs, wheat, glutamines, artificial colors, preservatives and several other products that some companies add to chocolate1. This dedication to natural flavor allows for the fruity and hearty flavor of the Grenadian cacao bean to be highlighted and appreciated by all of GCC’s consumers1.

Improving Company Farmer Relations

Another big problem within the chocolate industry is the loss of relationship between producers and farmers. Though most chocolate is consumed in Europe and North America, the main cacao growers and providers are Africa, Asia, Central America and South America, due to their proximity to the equator2. As many big companies compete for the lowest prices of cacao, local cacao farmers are forced to sell their crop for lower and lower prices, threatening their livelihood. This is intensified by the fact that many farmers do not have knowledge of the cocoa world market and have to trust their buyers who act as the middlemen for the middlemen of big chocolate companies. With all these factors in play, local farmers are lost in the complex economical system of cacao trading and receive only cents compared to the billions made by big chocolate companies. This can be seen in the figure below that describes how money flows within the chocolate industry.

fair trade pic

Today there are many companies fighting this system with fair trade policies in which companies promise to pay farmers more money than what the market offers them for their cacao. While this is a good start, there is a lot more that needs to be done in order to give cacao farmers a fair shot and compensate them proportionally to the joy they provide to all who eat the chocolate made from their work.


A prime example of what more can be done has already been shown by the Grenada Chocolate Company. In 1964 Grenada founded the Grenada Cocoa Association. The purpose of this group was to act as the center point for all cocoa exporting from Grenada. This meant that farmers had to sell to them in order to get their cocoa abroad. This took away their freedom of to whom they could cell and could only sell to the GCA at the prices determined by the organization, which was usually well below reasonable prices4. It was in this scenario that the Grenada Chocolate Company was founded. After much pushback and intimidation, GCC became not only the first company to chocolate on the island (before all cacao beans in Grenada were exported) but paid their farmers fair prices and exported the chocolate themselves as well. GCC is able to do this by creating a cooperative, a group of farmers that are work together to grow, harvest, and trade a product (in this instance cacao).

 GCC not only seeks to pay their farmers well (GCC farmers are payed 65% higher than the average for most cooperatives3), but also empowers their farmers by working with them through the whole chocolate making process, teaching how they ferment and process their beans on site giving them an opportunity to work with the company and grow in knowledge and experience.

Another aspect of GCC that is not necessarily about fair trade but works to mend the producer-farmer relationship is the fact that GCC is very open about the people they work with and seek to inform their consumers about the people who are helping to grow and harvest the food they are eating. They do this by featuring all of their workers on their website as well as including photos of their cacao farmers working. This is interesting because it gets rid of the wall in between farmer and consumer. For once, people can see the people who are preparing the food they love so much. This creates a human connection and makes the idea that these people are being mistreated across the world a harder pill to swallow and is more likely to stir people to action, whether that action is campaigning for stricter fair-trade laws or just purchasing solely from fair trade companies. These actions taken by GCC not only re-establish the producer farmer relationship, but also create a consumer-farmer relationship, something that is much needed if cacao farmers are going to get the support, they need in order to make a living wage.

 

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Champion of Environmental Sustainability

The last problem within the chocolate industry that I will talk about is the environmental impact of chocolate production. While chocolate is an amazing product to enjoy, like any other product, its production has an environmental impact that, if not monitored, will ultimately be harmful to the environment and will cause long term affects that will ultimately affect chocolate production and society in general. An example of this can be seen in the journal article “Environmental impacts of chocolate production and consumption in the UK,” by Antonios konstanas, in which the environmental impacts of various UK chocolate products were analyzed. From this analysis Konstanas’ team found that the amount of Carbon Dioxide produced by the UK chocolate industry lied in between 2.91-4.15 kg of CO2 produced per kg of chocolate produced. They also found that it takes around 41 MJ (Millijoules) of energy to create a batch of chocolate5. Noting these findings, it is important for chocolate producers to emphasize sustainability and work towards having a smaller carbon footprint within their harvesting, creation and transportation processes.

Once again GCC is leading the charge in this aspect as they seek to make their chocolate lifecycle completely devoid of carbon dioxide production and excessive energy consumption. In order to achieve this goal the Grenada Chocolate Company created one of the world’s first solar powered chocolate factories. GCC uses a combination of solar panels and grid power to power their chocolate making machines while keeping a propane fuel generator on hand in case of power outages. This emphasis on renewable energy is a step in the right direction of using clean energy to make chocolate and thus decreasing the product’s carbon footprint.

GCC SOLAR PANELS
Solar panels outfit the roof of the GCC factory

(For those who are interested how GCC did this Mott wrote an article about how and why he did this. Find it here: https://www.grenadachocolate.com/wp-content/uploads/2014/03/homepower_article.pdf)

GCC also seeks to take the carbon emissions out of transport costs as much as possible. While the company usually delivers chocolate to nearby islands via sailboats1, getting their product to the main lands has always been an environmental challenge. However, in 2013 GCC partnered with the Tres Hombres Engineless Cargo Ship to ship over 50,000 chocolate bars to Europe, performing the world’s first ever mass sustainable, carbon neutral, chocolate delivery across the Atlantic1. While this was only a one-time thing, it emphasizes GCC’s devotion to restoring the relationship between chocolate producers and the environment.

ship
Mott Green with the Tres Hombres Cargo Ship

Like every billion-dollar industry, the chocolate industry has its challenges as well as ethical obstacles that need to be hurdled before the industry can be seen as completely ethical. Whether product-wise, personal or environmental there are several problems within the industry that can be solved through respect, ingenuity, unity and admiration for the cacao fruit. The Grenada Chocolate Company is a perfect example of this. Such a company models exactly how not only chocolate, but all product companies should interact with their suppliers, the environment and each other. This company was created from nothing by Mott Green who wanted to show the world what a chocolate company should look like and how it should behave and sere its community. Since then GCC has been a hidden gem in the chocolate world, constantly pushing the boundaries of modern chocolate ethnics and leading the word to a brighter and more chocolaty future. Sadly Mott Green Died on June 1st 2013 while working on solar power machinery for cooling chocolate during transport overseas3. However, his memory lives on in GCC and the values that he instilled into the company that serves as a model chocolate company, inspiring and teaching future generations of chocolate makers.

the legend
Mott Green: Founder of the Grenada Chocolate Company

 

Note: Over the course of this research project I fell in love with the Grenada Chocolate Company and even more its founder, Mott Green.  Green devoted his life to helping others and sought to make all of his experiences and the experiences of those he served, absolutely genuine. His death was a tragic loss to the world of chocolate and society in general. To understand both him and GCC a bit more check out this 30 minute video about Green, his values and GCC!

 

References (in order of appearance)

  1. “The Grenada Chocolate Company.” The Grenada Chocolate Company, n.p. Web. April 29 2019 www.grenadachocolate.com/
  2.  “The Situation.” Slave Free Chocolate, n.p, Web. 29 April 2019 www.slavefreechocolate.org/children-slavery-cocoa
  3. Yardley, William. “Mott Green, a Free-Spirited Chocolatier, Dies at 47.” The New York Times, The New York Times, 10 June 2013,29 April  2019 www.nytimes.com/2013/06/10/business/mott-green-47-dies-founded-grenada-chocolate.html.
  4. Terennzi, Sharon. “The Fascinating Story of Chocolate Made in Grenada” Thechocolatejournalist.com. n.p. 1 June 2018. Web, 29 April 2019. https://thechocolatejournalist.com/chocolate-grenada/
  5. Konstantas Antonios et al. “Environmental impacts of chocolate production and consumption in the UK” Science Direct. April 2018. Web. 1 May 2019.
  6. Green, Mott. “Solar Powered Chocolate Factory” Grenada Chocolate Company. March 2002. Web. 1 May 2019. https://www.grenadachocolate.com/wp-content/uploads/2014/03/homepower_article.pdf

Madécasse: Conscious Chocolate for a Better Madagascar

One of the most pressing ethical issues concerning the chocolate industry is the poverty suffered by many cacao farmers around the world. Cacao farmers in Ghana, for example, generally make less than $2USD per day, which is insufficient for farmers to feed themselves and their families, even though the cost of living in Ghana is much lower than in the United States and other Western nations (Leissle 2018). Farmers also rarely have any control over the price of their cacao, as large corporations, weather, and politics all exert a large amount of influence on the price of cacao beans. Furthermore, this economic poverty is only amplified by the environmental degradation that often accompanies large amounts of agriculture. Recently, there has been a movement among chocolate companies, facilitated by consumer demand, to produce chocolate using ethically-sourced cacao in order to mitigate the destructive forces of capitalism in the Global South. One company working in this realm is Madécasse. By facilitating close relationships with cacao producers in Madagascar, Madécasse demonstrates how chocolate companies can work to provide better pay and living conditions for cacao farmers and invest in an environmentally sustainable enterprise – all while making chocolate that tastes great.

Madécasse was founded in 2008 by two Americans, Tim McCollum and Brett Beach, who had both previously served on the Peace Corps in Madagascar (Madécasse LLC 2019). This experience prompted McCollum and Beach to want to do more to help the people of Madagascar, and thus Madécasse was born. On the Madécasse website, their mission is stated as “a journey to flip the chocolate world right-side up” (Madécasse LLC 2019). This suggests that their purpose is revolutionary, and that in their view, the chocolate industry is in need of serious reform. Their stated mission is two-fold: first, to make the best-tasting, highest-quality chocolate from organic, “heirloom cacao” from Madagascar, and second, to remove middlemen from the chocolate production chain (Madécasse LLC 2019). One of the biggest problems in the chocolate industry that they aim to tackle through their business is “the thousands of miles and layers of middlemen” that separate farmers from chocolate producers and consumers, and they do this by conducting every stage of the chocolate production chain in Madagascar itself (Madécasse LLC 2019). 

One major way in which Madécasse is working to create a better Madagascar is by implementing business processes that work to ameliorate the poverty suffered by farmers in Madagascar. This is incredibly important, as Madagascar is considered one of the poorest countries in the world today, with 90% of people living on less than $2 USD per day, and 62% of the population living below the extreme poverty line, which is defined by the International Monetary Fund as an income that is less than what it would cost to consume 2,100 calories per day (Engstrom et al. 2015). Additionally, approximately 80% of the population lives in rural areas, and most of these people rely on subsistence farming to make a living. 

The cacao industry in Madagascar is also relatively small compared to that of nations such as Côte d’Ivoire and Ghana, as Madagascar produces less than 1% of the world’s cacao (Schatz 2016). However, Malagasy cacao is very highly-valued among Western chocolate companies, because it is genetically distinct and has a unique flavor (Watkins 2012). Combined with the high poverty in Madagascar, the value of cacao has led people to start stealing it (Katz 2014). The photo below depicts a cacao producer who keeps a gun at his desk to deter thieves. This display highlights not only how valuable cacao is to the farmers that grow it in Madagascar, but also how desperately poor so many Malagasy people are. 

Photo by Giulio di Sturco. From: http://time.com/3809538/madagascar-cocoa-chocolate-war-giulio-di-sturco/

But despite how coveted cacao is as a primary product, cacao farmers globally tend to only receive an extremely small proportion of the profits from sales of chocolate. In the diagram below from Make Chocolate Fair!, a European organization that advocates for fair trade in the chocolate industry, cocoa producers on average only receive approximately 6.6% of the profits from chocolate. 

Additionally, prices for primary agricultural products such as cacao tend to have the most volatile prices. Prices are not determined by typical supply and demand processes, rather, these products are treated as investments, and prices are determined by investor speculation (Sylla 2014). Both the low share of the profits from chocolate given to farmers and the unstable prices contribute to the economic inequalities between the Global North and South. However, there has been a growing movement to correct these issues and achieve greater equity in global trade. As a result, a few different strategies have been implemented, with the goal of correcting the trade injustice that leads to the majority of the profits going to the company, while farmers live in poverty. One of the most well-known of these initiatives is Fairtrade.

Fairtrade is a label overseen by Fairtrade International, a non-profit organization that oversees third-party labelling of products that confirms that both companies and farmers are complying with specific trade terms (Leissle 2018). Fairtrade has several requirements, including that producers must practice environmentally sustainable farming, and that they adhere to International Labor Organization rules for hired workers, including protecting children from the worst forms of child labor. Fairtrade producers also receive a minimum price for their cocoa, as well as a price premium for upholding Fairtrade policies, which both serve to protect producers from price volatility. The major benefit of Fairtrade is that this labelling helps to make consumers more aware of where their food is coming from, which can create greater accountability among consumers when they are choosing which products to buy.

However, Fairtrade is not a perfect system. For example, producer organizations are required to pay a fee to be certified, which can add to the financial challenges that producers of agricultural products already face (Leissle 2018). It becomes increasingly problematic because this cost is not passed on to consumers through, for example, making Fairtrade chocolate more expensive. This is done to keep Fairtrade chocolate competitively priced. Furthermore, the price floor set by Fairtrade International is still quite low, at around $2000 USD per metric ton of cacao (Leissle 2018). While this prevents cacao prices from dropping below that value, it does not incentivize chocolate companies to pay any more for their cacao, and thus the Fairtrade price of cacao has remained fairly stagnant. Finally, Fairtrade labelling can have the negative side effect of decreasing transparency among major players in the chocolate industry. While the increase in demand for ethically-sourced cacao has pressured major chocolate producers to communicate more information about the sources of their cacao, some companies like Cadbury have opted to use internal certification schemes, which are difficult to assess the robustness of (Leissle 2018). 

According to Madécasse, Fairtrade is simply a label that allows large chocolate companies to remain disconnected from cacao producers, but to still indicate to some unspecified extent that they are ethically sourcing their cacao (Madécasse LLC 2019). Madécasse is not Fairtrade certified; rather, they are Direct Trade certified, and they believe that this distinction not only makes their operations more transparent to consumers, but also allows them to do a better job than other companies of improving conditions for cocoa farmers.

In contrast to Fairtrade, which is basically just a labelling system, Direct Trade actually alters the structure of the commodity chain in chocolate production. Essentially, Direct Trade removes middle men from the commodity chain (Leissle 2018; Madécasse LLC 2019). Companies buy directly from farmers, which increases the amount that farmers can make for their products. In her book, Cocoa, Kristy Leissle describes the process of Direct Trade with the example of Taza Chocolate. Taza’s goal is primarily to source the highest-quality cacao, but in order to do that, they are willing to pay a higher price for the beans (Leissle 2018). For example, Taza paid cacao suppliers Maya Mountain Cacao and Cacao Verapaz over 75% more than the 2015 average price of bulk cacao. Not only does Taza pay more, but they pay farmers directly, and this also allows them to invest resources to help producers maintain a high standard of quality of their cacao. 

Similarly, Madécasse emphasizes the importance of maintaining close relationships with cacao farmers in Madagascar and paying producers more than average for their cacao. On the company website, Madécasse emphasizes that they are fully integrated into communities in Madagascar, and it is this close connection with the local people that allows them to make a positive impact. One way in which Madécasse has contributed to growth of the cacao and chocolate industry in Madagascar is by providing farmers with the infrastructure to ferment and dry cacao beans themselves so that they can sell dried cacao beans instead of wet ones, which allowed farmers to increase their income by 60% (Madécasse LLC 2019). Dry beans are much more profitable than wet cacao beans because they have gone through the extra processing steps of fermenting and drying (Leissle 2018). By providing Malagasy cacao farmers with the equipment to begin the processing of cacao, Madécasse has made an investment that will help cacao farmers begin to make more money for their product in the long term. 

Furthermore, Madécasse is unique because they have pledged to make chocolate where it is grown in Madagascar. To date, they have made over 4 million chocolate bars in Madagascar (Madécasse LLC 2019). By integrating cocoa farmers and the Malagasy people into the commodity chain of chocolate production, it gives them more agency over the final product. Additionally, it helps to expand the chocolate market beyond just Western nations. For example, South African consumers have expressed a demand for chocolate made in Madagascar (Watkins 2012), which indicates that high-quality chocolate can be made in Africa, and the demand for it does exist. 

However, the work that Madécasse is doing in Madagascar is not without its challenges. One major issue is scaling the business up in order to meet increasing demand, as Madécasse chocolate can now be found in Whole Foods stores in the U.S. (Schatz 2016). The challenges with producing chocolate in the country where it is grown are exemplified in the graph below, from the Madécasse website, which depicts the proportion of their chocolate that is made in Madagascar. 

From: https://madecasse.com/made-at-the-source/

In the initial years of the business, 100% of their chocolate was produced in Madagascar, but as demand increased, Madécasse elected to move a large percentage of their production outside of Madagascar (Schatz 2016). Madécasse states that they are committed to eventually moving 100% of their production back to Madagascar in the next few years (Madécasse LLC 2019). However, the necessity of moving production outside of Madagascar until factories have the capacity to produce a sufficient volume of chocolate highlights one of the major issues with the ethical, bean-to-bar chocolate business model, which is that making a tangible difference for cacao farmers and their families requires well-developed infrastructure that many cacao-producing countries simply lack. Therefore, the challenge of scale is one that small chocolate companies like Madécasse must address going forward. 

A second problem that Madécasse is becoming increasingly involved in helping to fix is deforestation and biodiversity loss in Madagascar. Madagascar is home to a large number of endemic species – over 85% of the animals on Madagascar are unique to the island – and over 90% of those species depend on the forest as their habitat (England, Ratsimbazafy, and Andrianarinana 2017; Harper et al. 2007). Furthermore, between 1950 and 2000, Madagascar lost 40% of its already-diminishing forest cover, and much of that deforestation can be linked to subsistence farming (Harper et al. 2007).

Madécasse has become increasingly vocal about environmental issues in Madagascar; the company recently published a report on their environmental impact, based on work with local people (England, Ratsimbazafy, and Andrianarinana 2017). This report demonstrated that cacao farms are actually a common habitat for many of Madagascar’s endemic species. This discovery led to a partnership with Conservation International and the Bristol Zoo to research the lemurs that live in the cacao forests. The importance of conservation in the company’s values is reflected in their packaging. As of 2016, Madécasse has redesigned their logo to include a lemur holding a cacao pod, which signifies that the company is aware that their business is tightly intertwined with the ecosystem of Madagascar. Furthermore, this packaging signals to consumers that Madécasse is interested in working to save and expand habitats for endangered species in Madagascar. Indeed, in an interview with Forbes, Madécasse co-founder Tim McCollum says that the company hopes to reforest an entire valley to use as a habitat for rescue lemurs (Schatz 2016). This is possible, he says, because the increased value of their cacao has allowed some farmers to replant old rice land, previously used for subsistence farming, into cacao forests. Thus, Madécasse is aware that their business’ positive impact on the people of Madagascar can also extend to the island’s ecosystem. 

Madécasse is thus an exceptional model for other chocolate companies. The goal of making chocolate from start to finish in the places where it is grown provides companies a great opportunity to make a positive impact on cacao farmers who today often barely make enough income to feed their families. Maintaining close relationships with cacao farmers and providing them with the resources to earn a sustainable, higher income is beneficial for the cacao farmers, chocolate producers, chocolate consumers, and for the environment as a whole. The result of business practices, such as those applied by Madécasse, is a high-quality product that consumers can feel good about purchasing and that truly makes a difference for those involved in every stage of its production.

Works Cited

England, Kate, Hajaniaina Ratsimbazafy, and Sitraka Andrianarinana. 2017. “Madécasse Impact Report.” Wildlife Returns. https://madecasse.com/wp-content/uploads/2016/09/Made%CC%81casse-2017-Impact-Report.pdf.

Engstrom, Lars, Patrick Imam, Priscilla Muthoora, and Alex Pienkowski. 2015. “Republic of Madagascar: Selected Issues.” 15. IMF Country Report. Washington, D.C.: International Monetary Fund.

Harper, Grady J., Marc K. Steininger, Compton J. Tucker, Daniel Juhn, and Frank Hawkins. 2007. “Fifty Years of Deforestation and Forest Fragmentation in Madagascar.” Environmental Conservation34 (4): 325–33. https://doi.org/10.1017/S0376892907004262.

Katz, Andrew. 2014. “Dark Gold: Giulio Di Sturco Goes Inside Madagascar’s Cocoa War.” Time. May 27, 2014. http://time.com/3809538/madagascar-cocoa-chocolate-war-giulio-di-sturco/.

Leissle, Kristy. 2018. Cocoa. Cambridge: Polity Press.

Madécasse LLC. 2019. “Madécasse – Direct Trade Chocolate and Vanilla.” 2019. https://madecasse.com/.

Schatz, Robin D. 2016. “Can A Brooklyn Chocolate Maker With A Social Mission Stand Out From The Crowd?” Forbes. April 25, 2016. https://www.forbes.com/sites/robindschatz/2016/04/25/can-a-brooklyn-chocolate-maker-with-a-social-mission-stand-out-from-the-crowd/.

Sylla, Ndongo S. 2014. The Fair Trade Scandal: Marketing Poverty to Benefit the Rich. Athens, Ohio: Ohio University Press.

Watkins, Tate. 2012. “Cuckoo for Cocoa Processing: Making Chocolate—Not Just Picking It—Helps Madagascar Develop.” GOOD. February 9, 2012. https://www.good.is/articles/cuckoo-for-cocoa-processing-making-chocolate-not-just-picking-it-helps-madagascar-develop.

Multimedia Sources

“Cocoa Prices and Income of Farmers.” 2013. Make Chocolate Fair! August 13, 2013. https://makechocolatefair.org/issues/cocoa-prices-and-income-farmers-0.

Katz, Andrew. 2014. “Dark Gold: Giulio Di Sturco Goes Inside Madagascar’s Cocoa War.” Time. May 27, 2014. http://time.com/3809538/madagascar-cocoa-chocolate-war-giulio-di-sturco/.

Madécasse LLC. 2019a. “Made At The Source.” Madécasse(blog). 2019. https://madecasse.com/made-at-the-source/.

———. 2019b. “Madécasse – Shop Direct Trade Chocolate.” Madécasse(blog). 2019. https://madecasse.com/shop/.

THE IMPLICATIONS OF GOURMET CHOCOLATE

“Gourmet Shoppe.” The two words that follow the name “Cardullo’s” begin to give a sense of the products that one will find upon walking through the door at this store in the heart of Harvard Square. Most shoppers will walk in and out of this store rapidly today—picking products off the shelves, going to the register, and going to their next destination wherever that may be. However, slowing this shopping experience down can prove useful in studying the implications of the food we consume on a daily basis. In this post, I will describe in detail the chocolate selection at Cardullo’s and use the store’s chocolate selection as a means for discussing several aspects of chocolate in our modern culture. What follows will be an engagement of how chocolate selection can help us to understand chocolate in society—from intended customer base to ethical considerations, to name a few—as well as a discerning eye for areas where the chocolate industry has dark secrets.

THE SELECTION

Navigating Cardullo’s can at times be nothing short of overwhelming—all of the shelves are filled to capacity with assorted foods and drinks. Navigating chocolate-related products alone yields a plethora of foods. With that, I have found it most useful to define a specific type of selection that I will focus on in this post. To allow for a more thorough, rather than surface-level, discussion, I have chosen to focus on chocolate bars and exclude other confections and treats that have chocolate as secondary ingredients. Doing so, I still am left with dozens of relevant products lining Cardullo’s shelves. I have found it most useful to divide this analysis into focusing on several components of the selection for the purpose of clarity. I will start by analyzing the types of chocolate that I am seeing as well as the prices of the chocolate. I will then focus on the labels and advertising implications.  

In the images above, we see side-by-side comparisons of two sections of Cardullo’s chocolate selection—on the left more upmarket self-professed ‘craft’ brands, and on the right more traditional mass-market items. Note the differences in appearances of the products, from the packaging coloring, density of imagery/words on the labels, etc. These differences will be explored in detail below.

THE TYPE/BRANDS

One of the first aspects that strikes me as I consider the selection of chocolate is the names of many of the brands on the shelves. These brand names sound artisanal and personal—names like Raaza, Goodnow Farms, and Scharffen Berger. In a market that has a lot of competition, name distinctiveness can be a powerful branding tool (Ju, Jun and Sutherland, 2015). In a wall display located next to this sea of novel names are some familiar brands such as Cadbury, and even Snickers, suggesting that even multinational conglomerates have a place at this gourmet market. While it will be discussed in greater detail later relating to the labels, consider the differences in the visual imagery of the two sections of chocolate—that is, the artisanal brands and the more mass-market brands. Emblazoned across the front of almost all of the artisanal bars in large letters are the percentage of Cacao: 62% on one, 70% on another, 95% higher still. These craft chocolates are noticeably different than the mass-market chocolates sitting on shelves just a few steps away to the right, which are predominately milk chocolate. With that, we can start to get a sense that these craft chocolates at Cardullo’s are marketed to a different audience than the mass-market chocolates such as Snickers and Cadbury to the right.  

Something that is common across all the bars of chocolate sold in Cardullo’s is that they are made from cacao that is produced outside of the United States. This is an important aspect to consider surrounding the history of chocolate, since the United States and Europe account for 73% of the consumption of cacao, whereas the production takes place elsewhere, with Africa accounting for 72% of the production of cacao (Martin, 2019). This has led to the rise of large-scale global supply chains that often involve many small farming operations to actually harvest the cacao, but also large multinational corporations involved with the production of the end-product chocolate bars (Martin and Sampeck, 2016, 50). The roots of this system of supply are colonialization and the presence of slavery, where cacao would be harvested in the colonies and then sent back to the colonizer for consumption (Mintz, 1986). Many of the chocolate companies that sell craft products at Cardullo’s pride themselves on being small operations that have direct contacts with the farmers (this will be discussed in greater detail when we examine the labels below). However, the question remains of whether this translates to more pay for the farmers of cacao themselves. With that, let us now turn to examining the price of these bars.

THE PRICE

Almost immediately after seeing the types and brands of the chocolate at Cardullo’s, my eyes looked just below to the prices. The prices were high—there is no dispute. And for several of the bars, the prices themselves were hard to find—hidden perhaps to draw customers in instead of being put-off by the price tag. But before getting into the specifics of the price, let us consider the historical context of price. Centuries ago, chocolate was considered a food for the elites (Coe and Coe, 2007).  It then became mass-produced alongside the rise of sugar in the European diet (Mintz, 1985). In America today, chocolate is regularly available to people of almost all socioeconomic levels. But this is not the case for the chocolate at Cardullo’s. Though the cheapest bar sold here retailed for under $5, the average price of chocolate bars was significantly higher—far closer to $10. So, what makes these chocolate bars more expensive than the average Hershey’s chocolate bar? There are few factors here to consider. The first is scale—many of these products are made in far smaller quantities and thus do not benefit from the economies of scale (Leissle, 2018, 101). Instead, it is a point of pride that these chocolates are made via the ‘single batch’ method.  

There are also a variety of certifications that many of these chocolate bars have, some of which suggest that they pay farmers higher prices than the commodity price of cacao. Certifications are viewed as a way to address price fluctuations present in the commodity prices, and to effectively set price floors that ensures a standard minimum price. However, these higher prices paid for beans often go to middle-men rather than the farmer themselves. Additionally, the dizzying array of potential certifications—from Rainforest Alliance, to FairTrade, to Direct Trade just to name a few—leaves the consumer with more questions than answers. For some consumers, simply seeing one of these certifications may make them feel good about purchasing a product, however, legitimate questions still remain about how much these certifications actually do. This is especially true for small craft manufacturers who have higher costs due to the lack of economies of scale (Leissle, 2018). As Kristy Leissle explains, “certainly, some craft makers do pay premium prices for beans, but it is a mistake to assume that if a bar costs $10, nine of those must be going to a farmer. Chances are they are not” (Leissle, 2018, 101).  

Ultimately, we must also consider the relatively inelastic price of chocolate. That is, for a product such as wine, people are willing to pay upwards of several thousand dollars for what is considered a premier wine. There are literally thousands of dollars that separate the price of nice wines from bad wines. However, chocolate bars that are considered greater than $20 seem to  reach the tipping point of what people will pay for the bar.

THE LABEL/ADVERTISING

Chocolate as a product has a long history of advertising that includes both derogatory racial and gender implications. For racism in advertising in particular, this is inextricably linked with the history of the cacao supply chain, including colonization and slavery. And the advertising itself holds undertones for the intended customer bases of products. For instance, consider the video advertisement for Dove chocolate below. The advertisement is sensual both in the depiction of the woman as well as the verbiage overlaid on the video by the narrator. It perpetuates the view put-forth in many chocolate advertisements that females are obsessive, sensual beings.

Dove Chocolate commercial as discussed above illustrates the gender stereotypes commonly found in chocolate advertising

While the chocolate at Cardullo’s does not have such overt advertising in terms of gender or race to many historical examples such as Belgian Antwerp hands, there are nonetheless distinctive advertising choices made. Consider the labels below.  

These two photos show the front and back of a craft chocolate bar at Cardullo’s. Focusing on the label, the imagery on the front shows an old-fashioned ship being built, eliciting feelings of simplicity and handcrafting. The back includes a map that shows from where the cacao originates and uses words such as “finest” “traditional” “carefully” and “small factory” deliberately.

These labels elicit the customers to believe that the product is a return to the traditional—a time when food was made simpler. It very clearly and cleanly discusses things such as tasting nodes and the origin is visually depicted. The choices made on this label are very deliberate, and appeal to an audience that cares about the quality of the food that they put into their bodies.

FINAL THOUGHTS

Chocolate is a food that brings joy to many people who eat it in many forms. But as consumers, we must also look at the history of chocolate and understand the ugly truths of our current production system, especially when it comes to adequate living standards for farmers. Outside of fair prices alone, there are ongoing questions and issues surrounding workers ages, gender imbalances, and ethnicity and racial inequities throughout the cacao and chocolate industries. So next time you go into a store, I encourage you to pause for a few seconds and think about what choices you are making as a consumer with your purchasing power. There are a lot of implications for the purchasing choices we make, and a lot can be learned simply by looking at the foodstuffs on shelves.

Works Cited

Coe, S. & Coe, M. (2007). The true history of chocolate (Revised [and updated ed.]. ed.). New York: Thames and Hudson.

Ju, I., Jun, J., & Sutherland, J. (2015). I Have Seen That Brand Before! How Do Consumers Recognize Advertised Brands? Brand Distinctiveness vs. Brand Differentiation. American Academy of Advertising. Conference. Proceedings (Online), 109.

Leissle, K. (2018). Cocoa. Newark: Polity Press.

Martin, C. (2019). Lecture January 30: Introduction. Harvard University.

Martin, C., & Sampeck, K. (2015). The bitter and sweet of chocolate in Europe. Socio.hu, (Special issue 3), 37-60.

Mintz, S. (1986). Sweetness and power : The place of sugar in modern history. New York: Penguin Books. the above images are my own taken at Cardullo’s Gourmet Shoppe.

Multimedia Credits:

The images above were taken by myself. The youtube video is from https://www.youtube.com/watch?v=SwPwQ4S4op8 and the hyperlinked article is from https://sites.northwestern.edu/akih/2013/02/21/chocolates-as-cultural-blind-spots-responding-to-civilization/

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.

Lotte Confectionary – Creation of Chocolate based holidays in East Asian Markets

 

Lotte is a huge conglomerate based in Japan/South Korea that has easily dominated the East Asian market for mass produced chocolate (Yonhap news). They are equivalent to Hershey’s in the states and recently solidified their global standing in the chocolate market by partnering with Hershey’s to dominate the chocolate market in China (Reuters). They are not only a company that produces chocolates, but many other chocolate related products in Asia along with being a conglomerate that has ventures in hospitality, technology and e-commerce.

Initially they began their marketing of chocolate in Japan, with what is called Ghana Chocolate.

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The name was derived from the source of their chocolate manufactures, they were marketed with “extra cacao for the extra rich taste” and with an “authentic” twist, as they were sourced directly from Africa. But much like their global competitor Hershey’s, they do not follow the recent model of “fair source” or “fair trade” chocolate. Unlike many of the local chocolatiers, they are anything but transparent in how their chocolate is sourced and conceived. Because they are a huge conglomerate, and because of lack of competition through artisanal and locally sourced chocolate in Asia, they feel no pressure to publicly release their sources and the treatment of the workers of their chocolate sources.

So why is this such a big deal? We’re familiar with the idea of bigger corporations buying out and hiding such information from us. When companies hide information from us in this day and age, more and more, we instead choose to make more educated choices when it comes to our purchasing of chocolate and spreading awareness. However, to understand why Lotte feels no pressure despite the spread of awareness and information to change, we have to go back a bit to understand the backstory of Lotte Corporation and a bit of Asian culture and history.

White Day, Black Day & Pepero Day

November 11 is just another day here in America. So is March 14 and April 14th. The only real “holiday” that America associates with chocolate is Valentine’s Day (February 14th). So why is it that the chocolate markets in Asia see such a huge increase in consumption and sales of chocolate during these seemingly random days?

In East Asia, particularly China, Japan and South Korea, being a “couple” is the trendy state to be. Rather than embrace your independence, many things in East Asia are catered towards couples and pairs. So, why is this important? This is because Lotte Confectionary has monopolized this mindset and effectively marketed various “holidays” and traditions that cater to this.

Aside from Valentines Day, East Asian cultures also celebrate what has been marketed to be “White Day” (March 14th) ,“Black Day” (April 14th) and Pepero Day (November 11th). In their culture, Valentines Day isn’t just a day for couples to exchange chocolate, but it is a day for women to gift different types of chocolate to various men in their life. There are 3 different types of chocolate that are sold and catered just for this day: Friendly Chocolate, Premium Chocolate and Hand-Made Chocolate. Friendly Chocolate is chocolate given to friends of the opposite sex that you are grateful to have in your life. Premium Chocolate are for the people in your life you are very grateful for but do not fit in a Friend or Lover category (ie. family members or best friends). The “Hand-Made” chocolate are the ones you carefully craft on your own after buying all the necessary ingredients and they are to be given to one person only – the person you love or would like to start a relationship with. This is important because on White Day, March 14, the men who have received these chocolates from women are expected to reciprocate and gift them with chocolate of their own. Of course, the same rules apply. And in April 14th, the lonely people who were unable to receive any Hand-Made Chocolate are expected to gather together and eat dark colored food (Smithsonian.com). Lotte has obviously used this to their advantage to market “bitter” dark chocolate and wallow in their sorrows until next year’s Valentines/White Day. Of course, Lotte has different types of chocolate at various price points to market and cater to all these buyers.

Pepero day (November 11) is yet another chocolate related holiday in where people give their significant others and people in their life Pepero. Pepero (or Pocky, as it is more commonly known here in the states) is a thin unsalted pretzel stick dipped in various flavored chocolate and different types of nuts for extra texture and flavor. Lotte Confectionary, a subsidiary of Lotte Corporation, is credited with the creation and marketing of this easy to chocolate dipped stick. Using clever marketing and visual cues, they have successfully branded this day as Pepero Day and the purchases of pepero on these days skyrocket. The day comes from looking like a Pepero Chocolate (11/11) and is also smart marketing on Lotte’s end.

pepero.jpg

All of the chocolate that is produced my Lotte plays up on this cultural aspect of Asia where being single is considered “lonely” and “unsatisfying. As you can see in this Commercial for Ghana Chocolate, they prey on the couple aspect and the happiness that one would receive from being gifted these chocolates. Of course, it is no secret that they have their hands on non-chocolate related couple items as well.

Sex Sells – Celebrities

Now, this still doesn’t full explain why Lotte is one of the the biggest producer of chocolate related products in Asia. Yes, they’ve used their marketing tools to play up the couple oriented culture in Asia and used words like “Real Cacao” to get the unsuspecting consumer to believe that the product they are purchasing are of the highest quality.

71cz8CK3mlL._SL1500_
(It may also help that Asian Countries aren’t as stringent like the US FDA to release all their ingredient info)

But it is their usage of sexualization and celebrity endorsements when it comes to these Chocolate related products. As you have seen in the above commercial, almost all chocolate advertisements in Asia are like that. While this is also a common tactic in the US, the celebrities in Asia are idolized (they are actually called Idols) and children from the age of 8 to adults well over 25, follow and almost worship these celebrities. By using them and showing that this is their preferred brand of chocolate, the consumers do not ask questions of the source of these products, but instead buy them in bulk hoping to be more like them.

However, through clever marketing platforms and excessive usage of monetary funds (They are the 5th biggest conglomerate in Asia), they have made it that being the face of a Lotte Chocolate brand is the biggest achievement a celebrity can receive. This is why the previous faces of their brand have been celebrities like Mao Asada, Lee Hye-ri and Park Bo-gum. To understand the power of these celebrities, all three of them have been featured on Korea/Japan’s Top 100 power celebrity lists year after year.

Purchase of Guylian – Belgian Chocolatiers

Now, with all these pseudo-holidays that pop up consecutively over the months, along with the traditional holidays of Valentines Day, Christmas, Anniversaries and Birthdays, Lotte has created a market where they can offer anything from cheap go-to chocolate bars to high end European designer chocolate. Their chocolate markets continue to boom through the usage of celebrity endorsements, and ongoing advertisements for the necessity of their chocolate.

And now, with the purchase of Guylian, a high end designer chocolate maker based in Belgium, Lotte has been able to set a landmark and a path into Europe to even further their holding in the chocolate industry (Justfood.com, forbes.com). The most interesting part of this acquisition is that Guylian, on their website, claim that all their chocolate is humanely sourced from West Africa with their manufacturer guaranteeing the safety of the food (Guylian.com). Their website goes on to display their numerous awards and their guarantee of authentic and 100% cacao bean usage in all their chocolates.

Guylian is a company with origins in the art of haute-couture chocolate, with renowned chocolatiers within their starting ranks that have received certifications from famed confectionary and chocolatier schools. Through this purchase, Lotte has also been able to rebrand themselves into an even more sought after and cultured variation of chocolate. Rather than being just a consumer friendly chocolate company with “higher end” products, they have been able to include a Belgian based chocolatier that is famed and well known around Europe with their Guiness Record (Guiness) in chocolate making and patented praline chocolates.

Now, why is it that their parent company, Lotte Confectionary/Corporation, is not held to the same standard? Nowhere on Lotte’s website is there a link to the source or the location of their chocolate, nor how it is manufactured. The closest we can get to is that their chocolate is in majority sourced from West Africa (Ghana) and that they use “real cacao beans” to make their chocolates.

Why Should We Care?

Fair trade law, one that we are so familiar with in America and thanks to our class, is something that is still in its infancy in Asia (koreanherald.com). Despite Lotte being such a huge conglomerate that holds stake in almost everything you can think of (Technology, Hospitality, Food, Wine, etc.), because the Fair Trade Act isn’t a widespread knowledge and notion in Asia, ultimately the consumers do not care.

They do not check the sources of their products, they only care to purchase the “prettiest packaged products” to give to their significant others. The Fair Trade Certifications we discussed in class do not apply to the Asian Market, despite the chocolate being consumed in these areas have consistently risen (Financial Times). With Asia looking to be the next big market in chocolate that these conglomerates can get their hands on, shouldn’t Fair Trade be a priority?

However, through the usage of fancy terminology like “Real 100% Cacao” and “Chocolatiers”, Lotte manages to bypass all the Fair Trade knowledge that we have learned through class. The most important thing we should demand from this corporation is what we demand from every company these days – transparency.  Yet, because the economic and trade laws that encompass Asia are mostly focused towards fair trade within their borders, how their products are received in Asia do not really matter, it only matters how we treat our workers and crops within the continent of Asia itself.

As of right now, Lotte chocolates aren’t a major player in the United States. Other than a handful of Asian Markets that carry their brands, their reach to the United States is limited by global competitors like Hershey’s. However, with their recent joint-venture with Hershey’s in China and their merger with Guylian chocolates in Belgium, it is only a matter of time before they take over the global market, just like how they did in Asia. Because the idea of fair trade is still in its infancy in Asia, this can be a major issue to the chocolate markets and cacao farms across the world.

Because they are headquartered in South Korea and Japan, they do not feel the pressure that a lot of US companies do when it comes to Fair Trade in Chocolates. The labor laws directed at South Korean citizens state that the minimum wage to work a full time job (40 hours a week) in South Korea as of now is 15 and they may work a part time job (20 hours a week) at the age of 13 (DOL). If this is the law that they have on their own citizens, why should they really consider the dangers of child labor laws when it comes to foreign countries?

This isn’t to cast a bad light in Asian working culture, but to show the vast difference in culture and the importance of a global policy when it comes to these matters. When Lotte tries to break their way into the US market, we should be more aware of what they are offering and put the same amount of pressure on them as we are to Hershey’s and other global chocolate corporations. Because ultimately, fair trade chocolate is the best tasting chocolate we can have.

Works Cited:

“Chaebol Rankings Seesaw over 2 Decades.” Yonhap News Agency, english.yonhapnews.co.kr/news/2017/11/01/0200000000AEN20171101003000320.html.

Department of Labor. “Laws Governing Exploitative Child Labor.” http://www.dol.gov/sites/default/files/research/southkorea_CL.pdf.

“History.” Guylian Belgian Chocolates, http://www.guylian.com/us/history/#history.

Just-food.com. “SOUTH KOREA: Lotte to Buy Chocolate Firm Guylian.(Reprint).” Just-
Food.com, 2008, pp. just-food.com, June 25, 2008.

Kim, So-Hyun. “Fair Trade Finds Feet in Korea.” Korean Herald, 10 May 2013, http://www.koreaherald.com/view.php?ud=20130510000757.

Kwok, Vivian Wai-yin. “Korean Confectioner Takes A Bite Of Europe.” Forbes, Forbes Magazine, 19 June 2013, http://www.forbes.com/2008/06/23/guylian-lotte-confectionery-markets-equity-cx_vk_0623markets03.html#47c47be64320.

Martin, Carla.“Alternative trade and virtuous localization/globalization”, Harvard University, (2018).

Martin, Carla.“Haute patisserie, artisan chocolate, and food justice: the future?”, Harvard University, (2018).

Smith, K. Annabelle. “Korea’s Black Day: When Sad, Single People Get Together And Eat Black Food.” Smithsonian.com, Smithsonian Institution, 13 Feb. 2013, http://www.smithsonianmag.com/arts-culture/koreas-black-day-when-sad-single-people-get-together-and-eat-black-food-16537918/?no-ist.

Soyoung, Kim. “Lotte, Hershey Launch China Candy Venture.” Reuters, Thomson Reuters, 29 Jan. 2007, http://www.reuters.com/article/us-lotte-hershey-china-idUSSEO22724620070129.

Terazono, Emiko. “Asian Chocolate Demand Set to Outstrip Global Growth.” Financial Times, Financial Times, 4 Oct. 2017, http://www.ft.com/content/3cb2e488-a8f8-11e7-ab55-27219df83c97.

“Valentine’s Day.(Chocolate Purchases)(Brief Article).” Journal of Property Management, vol. 71, no. 1, 2006, p. 9.

 

*thank you again for the extension on my paper regarding personal matters. I really really appreciated the extra time. Thank you!

 

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

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.

TAZA CHOCOLATE: HOW A SMALL COMPANY IS MAKING A BIG DIFFERENCE

Taza5


TAZA CHOCOLATE

HOW A SMALL COMPANY
IS MAKING A BIG DIFFERENCE


taza_chocolate_mission_large

In its origins, cacao relied heavily on the slave trade to fuel its ever-increasing demand (Martin, 2018). Despite the abolition of slavery in the mid 19th century, the modern day chocolate industry is still riddled with inherent ethical issues. In response to the persistent pervasiveness of injustices within the industry’s process, bean-to-bar brands have proliferated as a potential solution with a commitment to both the ethicality and culinary aspects of chocolate production; Taza Chocolate in Somerville, Massachusetts typifies one of these companies striving to produce delicious chocolate through ethical practices and a high degree of production transparency. Founded in 2005 by Alex Whitmore and Kathleen Fulton, Taza Chocolate produces “stone ground chocolate that is seriously good and fair for all” (Taza, 2017). Taza acts as an all-around ethical, socially-conscious and purpose-driven business.

Taza’s company culture is driven by its founder, who prior to opening his own company “apprenticed with Mexican molineros, learning their ancient chocolate-making secrets” (Taza, 2017). Taza offers an easy application process opening up more opportunities in making an effort to get natives from the countries that it sources its cacao from involved in its business processes.

Taza1
Owner Alex Whitmore carving patterns into a stone for grinding chocolate

Taza, meaning “cup” in Spanish, is reminiscent of the way Aztecs ritualistically consumed chocolate in liquid form using specially designed cups or vessels for this purpose (Coe, 1996). A nod to its rich history is also found in its design and packaging displaying a cacao pod and its signature mold in the form of the Mexican millstone, a stone that is traditionally used to grind chocolate.

“Taza founder Alex Whitmore took his first bite of stone ground chocolate while traveling in Oaxaca, Mexico. He was so inspired by the rustic intensity that he decided to create a chocolate factory back home in Somerville, MA. Alex apprenticed under a molinero in Oaxaca to learn how to hand-carve granite mill stones to make a new kind of American chocolate that is simply crafted, but seriously good. In 2005, he officially launched Taza with his wife, Kathleen Fulton, who is the Taza Brand Manager and designed all of the packaging.

Taza is a pioneer in ethical cacao sourcing. We were the first U.S. chocolate maker to establish a third-party certified Direct Trade Cacao Certification program. We maintain direct relationships with our cacao farmers and pay a premium above the Fair Trade price for their cacao. We partner only with cacao producers who respect the rights of workers and the environment.” (Taza, 2017)


THE CHOCOLATE SUPPLY CHAIN

BUYING AND SELLING CACAO


 

Taza2.jpeg
A traditional metate

Millions of hands spanning multiple continents are responsible for the production of the key ingredient in this beloved treat, but most consumers don’t have a sense of the complex intricacies of the supply chains involved in chocolate and the economic realities of the farmers who grow the crop.

The chocolate supply chain begins with the cultivation of cacao pods. After cacao cultivation, the pods are harvested and the seeds and pulp are separated from the pod. The cacao seeds are fermented and dried before being sorted, bagged, and transported to chocolate manufacturers. The cacao beans undergo roasting, husking, grinding, and pressing before the product undergoes a process called “conching,” in which the final flavors develop (Martin, 2018). Differences in the execution of each step influence the ultimate taste and consistency of the chocolate product.

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Today, approximately two million independent family farms in West Africa produce the vast majority of cacao. Each farm, between five to ten acres in size, collectively produce more than three million metric tons of cacao per year (Martin, 2018). While some of the farms grow crops like oil palm, maize, and plantains, to supplement their income, the average daily income of a typical Ghanaian cacao farmers is well under $2 per day.

The commercial process of purchasing cacao usually involves the farmers selling to intermediaries, who subsequently sell to exporters or additional  intermediaries. With each middle-man adding their own profit layers, the supply chain lengthens as well the opportunity for the corruption and exploitation of the growers and farmers.

In response to the social and economic injustices associated with the cacao supply chain, various organizations have been established with the common mission of improving ethical and corporate responsibility of global cacao practices. Many of these organizations have established criteria for certifications with the goal of enticing companies to comply with specified ethical requirements in exchange for public acknowledgement for doing so.

“Fair Trade,” a designation granted by the nonprofit of the same name, stands out as a recognizable stamp on many shelf-brands. Self-defined as an organization which “enables sustainable development and community empowerment by cultivating a more equitable global trade model that benefits farmers, workers, consumers, industry and the earth,” Fair Trade certifies transactions between U.S. companies and their international suppliers to guarantee farmers making Fair Trade certified goods receive fair wages, work in safe environments, and receive benefits to support their communities (“Fair Trade USA,” 2017).

Yet, while in theory Fair Trade seems to address many issues the cacao farmers face, critics of the certification point out there exists a lack of evidence of significant impact, a failure to monitor Fair Trade standards, and an increased allowance of non-Trade ingredients in Fair Trade products (Nolan, Sekulovic, & Rao 2014). So, while in theory certifications like Fair Trade offer the potential to improve the cacao-supply chain by ensuring those companies who subscribe to the certification meet certain criteria, the rigor and regulation of the criteria remains heavily debated.

 


FAIRER THAN FAIR-TRADE

BEAN-TO-BAR AND DIRECT TRADE


 

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In contrast to Fair Trade, an alternative type of product sourcing that is growing in popularity and reputation is that of Direct Trade. Different from the traditional supply chain process, ‘bean-to-bar’ companies offer this as a potential solution for the injustices in the cacao industry. By cutting out the middle-men and working directly with cacao farmers, these small chocolate companies commit themselves to the highest ethical standards and quality (Shute 2013). The goal is that this bean-to-bar “pipeline will make for more ethical, sustainable production in an industry with a long history of exploitation” (Shute, 2013).

While providing some oversight on ethical practices, Fair Trade’s supervisory capacity does little to create a relationship between the farmers and the ultimate producers or to eliminate extraneous intermediaries diluting profit from both parties. Additionally, achieving a Fair Trade certification costs between $8,000 and $10,000, whereas Direct Trade costs the chocolate bar producer nothing.

This direct connection, allows the buyer and farmer to communicate fair prices, ensuring that the cacao farmers receive fair wages, working conditions, and support (Zusman, 2016). Furthermore, the transparency associated with the bean-to-bar process motivates the companies to keep up to date on ethical practices, and encourages the cacao farmers to take extra care the cultivation of their beans.

Taza sources its cacao from its “Grower Partners” in the Dominican Republic, Bolivia, and Haiti. Taza provides a detailed profile for each of its cacao producers which features information including the country region, number of farmers, duration of partnership, tasting notes which contribute to the terroir of their chocolate, history of the region, and pictures of the farmers with Taza employees. The thorough information Taza provides truly puts faces to the names of the farmers and displays Taza’s direct and personal engagement with their cacao producers.

 


THE TAZA DIFFERENCE

TRANSPARENCY AND DIRECT-TRADE SOURCING


 

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Alex Whitmore, an innovator of the bean-to-bar movement founded Taza with a commitment to “simply crafted, but seriously good chocolate,” and as “a pioneer in ethical cacao sourcing” (Organic Stone Ground Chocolate for Bold Flavor, 2017).

The mission of Taza Chocolate is “To make and share stone ground chocolate that is seriously good and fair for all” (Taza, 2017). In the dual parts of their mission: “seriously good” and “fair for all”, Taza has become a leader in using the quality and ethicality of their products to empower and respect those often overlooked workers at the very front of the supply chain. Looking first at quality, Taza has seen success as a maker of “seriously good” chocolate (Taza, 2017). Their products are now available all over the country and internationally, in specialty, natural and gift stores. Fine restaurants have used Taza Chocolate in their kitchens and numerous major food publications have featured the company. But these are just outward indicators of what goes on behind the scenes. For one thing, their “seriously good” chocolate seeks to remain true to its cacao origins and acknowledge where it comes from through proper and authentic taste. While other chocolate makers may do as they please to conform to the tastes of the consumer masses, Taza Chocolate caters to the genuine recipes and processes of the geography and culture within which it was conceived.

In addition to publishing their Direct Trade Program Commitments, Taza provides access to their transparency report, cacao sourcing videos, and their sustainable organic sugar.  Seemingly, Taza exemplifies the archetype bean-to-bar company.

Taza chocolate products carry five certifications to ensure safe labor practices as well as organic ingredients, whose integrity is guaranteed by having their “five Direct Trade claims independently verified each year by Quality Certification Services, a USDA-accredited organic certifier based in Gainesville, Florida” (Taza, 2017).

“Taza is big on ethical cacao sourcing, and is the first U.S. chocolate maker to establish a third-party certified Direct Trade Cacao Certification program, meaning, you maintain direct relationships with your cacao farmers and pay a premium above the Fair Trade price for their cacao.” (Taza, 2017)

In its Transparency Report displayed below, Taza even discloses what it pays for its cacao beans. 

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Bean-to-bar chocolate companies appear to be a viable potential solution, albeit slow and on a more micro level, to addressing the issues in the cacao-chocolate supply. Because currently the consumer base does not seem to possess a critical awareness of different certifications, the bean-to-bar companies must continue to pioneer more moral standards until enough customers catch up and until demand forces the bigger chocolate vendors to take a similar approach. Until then, tackling the exploitation embedded in the cacao-supply chain falls exclusively on the shoulders of the chocolatiers equally loyal to both chocolate and social responsibility.

Taza Chocolate is undoubtedly making large efforts to be a part of the solution rather than a part of the problem. Rather than allowing consumers to blindly focus on the end product of the chocolate itself, Taza encourages consumers to acknowledge the environment and culture from which the chocolate originates. Often forgotten farmers and food artisans are brought to the forefront instead of being relegated to the archives of unseen histories. Indeed, Taza gives growers “an alternative to producing low quality cacao for unsustainable wages” (Taza, 2017). Taza’s operations may still be in its nascent stages, but it is exciting to see even a small company lead the entire chocolate industry towards a more ethical and sustainable future.

 


References


 

Coe, Sophie D., and Michael D. Coe. The True History of Chocolate. New York: Thames and Hudson, 1996. Print.

Fair Trade USA. N.p., n.d. Web. 03 May 2017.

Martin, Carla. “Modern Day Slavery.” Lecture, Chocolate Lecture, Cambridge, March 22, 2017.

Martin, Carla. “Alternative Trade and Virtuous Localization/Globalization.” Lecture, Chocolate Lecture, Cambridge, April 04, 2017.

Martin, Carla. “Slavery, Abolition, and Forced Labor.” Lecture, Chocolate Lecture, Cambridge, March 01, 2017.

Nolan, Markham, Dusan Sekulovic, and Sara Rao. “The Fair Trade Shell Game.” Vocativ. Vocativ, 16 Apr. 2014. Web. 03 May 2017.

“Organic Stone Ground Chocolate for Bold Flavor.” Taza Chocolate. N.p., 2015. Web. 08 May. 2018. <https://www.tazachocolate.com/&gt;.

Shute, Nancy. “Bean-To-Bar Chocolate Makers Dare To Bare How It’s Done.” NPR. NPR, 14 Feb. 2013. Web. 03 May 2017.

Taza Chocolate. “Sourcing for Impact in Haiti.” Vimeo. Taza Chocolate, 03 May 2017. Web. 03 May 2017. Video

 

Zusman, Michael C. “What It Really Takes to Make Artisan Chocolate.” Eater. N.p., 11 Feb. 2016. Web. 03 May 2017.


Media


Taza Chocolate. (2018) Header Image

Taza, Chocolate. (2018). “Stone Ground Chocolate”

Chocolatenoise.com (2018).  “Alex Whitmore”

Chocolatenoise.com (2018).  “A traditional metate”

Chocolatenoise.com (2018).  “Taza chocolate making process”

Chocolatenoise.com (2018).  “Whitmore with farmers”

Youtube. (2012).  Taza on fair trade

Chocolatenoise.com (2018).  “Rotary stone”

Taza, Chocolate. (2018). “Direct trade”

Vimeo.com. (2006). Taza Chocolate “Bean to Bar”

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).  

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(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)

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(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).

 

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(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.

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(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.