July 7th is International Cocoa Day: the raw material used to make many products loved all over the world, first and foremost chocolate. The cocoa bean is the seed of the cocoa tree, a plant native to the tropical regions of Central and South America.
The world's leading producer of chocolate is Europe, followed by the United States. But these countries are processors of cocoa: the trees are actually grown elsewhere. Notably, in Ghana, Côte d'Ivoire and other emerging countries.
However, cocoa cultivation in these countries, which is essential for the chocolate industry, has significant social and environmental impacts.
The cocoa industry is at a turning point. There's a growing awareness of the problems linked to traditional cocoa farming, and a push for more sustainable methods. Consumers are increasingly demanding ethically sourced chocolate, and this is driving change throughout the supply chain. The industry is facing some serious questions about its impact on the environment and the lives of cocoa farmers.
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The Price of Cocoa
Cocoa's price, a “commodity” on the financial markets, rose by 170% during 2024 as a result of environmental, social, economic and political factors. But also speculative factors. The peak was reached when the price exceeded 12,000 euros per tonne on the international markets.
This price is far below what local producers are paid. The Italian association Mani Tese, for example, has been working in Côte d'Ivoire since 2023 and has found that many workers in the cocoa industry (both Ivorians and immigrants from neighbouring countries) have never even tasted chocolate.
The country, which until 2022 was the world's leading cocoa producer with a 44% market share, reduced its production by 30% between 2022 and 2024. There are several factors behind this, including soil depletion and plant diseases. The workers in the supply chain were the first to suffer the consequences.
However, these biological factors are reversible. They demonstrate the need for a sustainable cocoa industry that cares about both the environment and people.
Producing countries, however, are not always able to guarantee fair treatment for workers. In 2020, an analysis by Katherine Davidson, manager of Schroders' Schroder ISF Global Sustainable Growth fund, estimated that at least 2 million children were working on their families' farms.
Of course, chocolate companies committed themselves back in 2001 to eliminating child labour in their supply chains, but they have failed to meet this target three times already: in 2005, 2008 and 2010. Davidson also pointed to estimates that child labour in cocoa farming has actually increased.Understanding the current landscape of sustainable cocoa
The challenges facing cocoa farmers
Cocoa farming, particularly in West Africa, faces many difficulties. Farmers often struggle with low incomes, making it hard to invest in better farming practises or even support their families. Issues like ageing cocoa trees, limited access to training, and vulnerability to market price fluctuations add to the problem. Many farmers lack the resources to improve their yields or adopt more sustainable methods. This creates a cycle of poverty that's hard to break.
Environmental impact of traditional cocoa farming
Traditional cocoa farming has a significant environmental footprint. Deforestation is a major concern, as forests are cleared to make way for cocoa plantations. This leads to habitat loss, soil erosion, and increased carbon emissions. The use of pesticides and fertilisers can also pollute water sources and harm biodiversity.
The role of consumer demand in driving change
Consumer demand for ethically sourced chocolate is a powerful force for change. People are becoming more aware of the social and environmental issues linked to cocoa production, and they want to buy chocolate that's made in a responsible way. This is putting pressure on chocolate companies to source cocoa from sustainable sources and to ensure that farmers are treated fairly.
Of course, there are certifications that a product is fair trade. But it must be remembered that the increase in demand for ethical products has, unfortunately, led to the emergence of various certification programmes. These do not necessarily use the same standards and do not apply them with the same rigour.
This has encouraged a phenomenon known as “fair washing”, which basically means passing off as fair trade something that is not at all. This has led to scandals and the withdrawal of certifications, which also damage the reputation of those who are doing the right thing.
The solutions
Investing in farmer training and education
It's clear that the future of sustainable cocoa hinges on the farmers themselves. To make a real difference, we need to invest properly in farmer training and education. This isn't just about teaching them new farming techniques, but also about providing them with the business skills they need to manage their farms effectively. A well-trained farmer is better equipped to adopt sustainable practises and improve their yields.
Ensuring fair pricing and living incomes
One of the biggest issues in the cocoa industry is the unfair pricing that farmers receive. It's simply not sustainable to expect farmers to produce cocoa at a loss or for a pittance. We need to move towards fair pricing mechanisms that guarantee a living income for cocoa farmers. This means ensuring they receive a price that covers their costs of production and allows them to support their families.
Promoting farmer-led cooperatives and decision-making
Farmers need to have a voice in the cocoa industry. Promoting farmer-led cooperatives and decision-making is essential for creating a more equitable and sustainable supply chain. When farmers are organised, they have more power to negotiate fair prices, access resources, and advocate for their interests. It's about shifting the power dynamic and giving farmers more control over their livelihoods. This also means including them in discussions and decisions that affect their farms and communities.
Implementing sustainable farming practises
It's clear that the future of cocoa depends on moving away from destructive methods. We need to look at how cocoa is actually grown. It's not just about getting a good yield this year; it's about ensuring cocoa can be grown for generations to come. This means embracing farming methods that work with the environment, not against it.
Adopting agroforestry and biodiversity conservation
Agroforestry, which involves integrating trees and shrubs into cocoa farms, is a big part of the solution. It's not just about planting a few trees around the edge of a cocoa farm. It's about creating a diverse ecosystem that benefits both the cocoa and the environment. This approach helps to improve soil health, provide shade for cocoa trees, and create habitats for wildlife. It also helps to diversify farmers' incomes, as they can harvest other products from the trees, like fruit or timber.
Improving soil health and water management
Healthy soil is the foundation of any successful farm. Traditional cocoa farming can deplete soil nutrients, leading to lower yields and increased reliance on fertilisers. Sustainable practises focus on building soil health through methods like composting, cover cropping, and reduced tillage. Effective water management is also essential, especially in regions prone to drought or flooding. This might involve implementing irrigation systems, building water storage facilities, or using mulching techniques to conserve soil moisture. These methods help farmers improve productivity while minimising environmental impact.
