Advent calendars, truffles, Christmas chocolates... chocolate is a must-have for the end of the year. However, very few consumers are aware of the negative impact that these little sweets have on our planet.
Every year, around 7 million tonnes of chocolate are consumed worldwide. The global turnover of the sector is predicted to reach 124 billion euros in 2021. The sector is growing and a turnover of 177 billion per year is expected in 2028. 70% of the production is produced in West Africa - especially in Ghana and Côte d'Ivoire.
Problems linked with cocoa production
There are many social, economic and climatic challenges in the sector. Cocoa farmers face many risks. The prices of raw materials depend on the variations in the markets, and the cocoa market is very volatile. In 2020, the sector was hit hard by the crisis. Demand dropped so much that cocoa prices collapsed, which put farmers in a difficult position. Most farmers work on family farms -- less than 5 hectares--, where yields are around 400 kilos per hectare. In order to limit their costs, they make their children work on the farm. In Côte d'Ivoire and Ghana, 2.1 million children work on the farms. The work is hard and dangerous, as they have to carry heavy loads and live in close contact with pesticides. Furthermore, working prevents them from going to school. Therefore, the children have no prospects for the future. These farmers are in countries where the state is almost non-existent and often pay taxes to armed groups in order to be protected from potential attacks from other armed groups.
As demand for cocoa increases, more land and higher yields are needed, resulting in increased deforestation and soil pollution. Cocoa production contributes to global warming. As cocoa does not like climates that are too hot and dry, it is a vicious circle. Yields are decreasing every year. Farmers are resorting to more and more pollutants, which could lead to lower yields in the long-term.
Farmers live in great poverty. They are also dependent on market prices.
If we want to continue to eat chocolate, we must protect the cocoa producers. Without producers, there is no cocoa. Hence, we must increase their income, so that they can make a better living from it and invest in increasing their soil yields (using natural fertilisers, finding ways to protect their production from pests) and have better working conditions (including shade trees and better incomes).
The sector is evolving
It is important to choose your chocolate carefully. In order to limit these problems, many certifications have been created. Fair trade, which ensures that small producers are paid a fair price and that production and harvesting are done in an ethical manner. Many organic labels have also been established to ensure that the chocolate has been produced without pesticides. However, it is very difficult to find your way around. Not all labels have the same criteria, and some have relatively low standards. Large multinationals also create their own sustainability labels, but this does not commit them to anything.
Although taste is the most influential criterion when buying chocolate, customers are increasingly interested in buying chocolate that respects social and environmental values. Therefore, the threats surrounding the sector can be turned into opportunities. One notable example is the Austrian company Zotter Schokoladenmanufaktur. Zotter is one step ahead of other companies in the sector. Although it is far from the size of many chocolate companies such as Ferrero, Mondelez or Nestlé, the company has managed to make a name for itself in the chocolate world. Zotter has decided to produce a very high quality chocolate that respects the principles of organic farming and fair trade. In order to control the respect of these principles as well as the quality of its products, the company decided to control the totality of the production -- from the harvest of the cocoa to the packaging of its products. The company has launched an "Organic, Fair, Green" program in which it commits to not using child labour, to respecting the environment and to paying farmers fairly. It also participates in programs such as “Cocoa not cocaine” and “Chocolate for school”. The company has a good image.
Zotter is very popular in the German-speaking region. It is a fast-growing company, because it has been able to stay ahead of the game and the expectations of their customers. Since small companies have managed to produce their chocolate differently, it is possible for larger companies to make a profit while producing their chocolate in a more ethical and eco-friendly way.
Thomas D.
https://www.kakaoplattform.ch/about-cocoa/challenges-in-the-cocoa-sector
https://www.cargill.com/sustainability/cocoa-promise/cocoa-farm-development
https://www.zotter.at/en/about-zotter/organic-fair-trade-green
https://www.wearephenix.com/blog/2020/04/10/le-guide-du-chocolat-responsable/
Hello Thomas,
ReplyDeleteThank you for this article. I think it is really interesting. You have a much deeper reflection of your dream sector that you want to work in later. After reading your text, I have a question. As you mentioned, companies started to pay attention to protecting their producers and try to make some changes. But I am wondering if there are any international organizations which monitor the fulfillment of this commitment. Also, as you said, there are a lot of labels which actually have no sense because companies don’t respect them. Are there any other labels that we could trust except Fair Trade ?
Thank you,
Xiaorong Z.
Hi Xiaorong,
DeleteThank you for your comment.
The labels are given by international organizations. (including Max Havelaar, Rainforest Alliance, BIO and UTZ Certified). Each of them has a different approach in terms of environment or ethic. These organizations continue to keep a close eye on the companies that have received their label so that consumers can trust the label.
Some labels have no sense, not because companies don't respect them. Some labels are created by chocolate companies and the criteria are not as high as that of real labels. (among them, they are the Cocoa Plan from Nestlé or Lindt&Sprüngli farming program from Lindt)
They are plenty of "Fair Trade labels". You can trust that of Max Havelaar, Fair for Life, World fair trade organization, Bio partenaire and Le Symbole des producteurs paysans in France. You can also trust the labels from UTZ and Rainforest Alliance, even if their standards are lower. The hardest part for consumers is to memorize and identify the logos of great labels, and to recognise those that cannot be trusted.
Thomas D.
Hi Thomas,
ReplyDeleteThank you for this article. I didn't know chocolate companies were involved in child labour and heavy pollution, that leads to global warming. Are these practices just ways for big companies to reduce their costs ? And if so, what could be improved so that both the farmers and the company can benefit ?
Regards,
Myriam F.
Hi Myriam,
DeleteThank you for your comment.
These practices are just ways for big companies to reduce their cost. The only way to improve the living and working conditions of farmers is to invest more. Big companies have to pay farmers more and to invest in order to be more eco-friendly.
These will have an impact on their profit margins. The increased costs are likely to be reflected in the price of chocolate. However, better quality control of products and ethical and ecological production are increasingly important criteria when consumers buy their product. The chocolate consumer is willing to pay more if these two conditions are met. Companies will therefore be able to use their new brand image. It will be possible to reconcile the welfare of farmers with profit.
Thomas D.
DeleteHi Thomas,
ReplyDeleteWhat an insightful article! I was wondering if there is any brand which uses chocolate that you would avoid and recommend others to avoid as well :)
Thanks so much,
Belén P.
Hi Belén,
DeleteThank you for your comment.
In fact, very few farms produce their cocoa in an ethical and eco-friendly way. Hence, it is difficult for large companies that need large amounts of cocoa to produce it in a 100% fair and ecological way. A big company can't invest alone in African or South American countries because it is too expensive, and this would be reflected in the prices of the company's products. Other companies will then take advantage of the situation and take some market shares from the first one.
Upshot : The ethical and eco-responsible company would be in trouble and only a small part of the cocoa harvest would be more ethical and eco-friendly.
If you are willing to pay more for your chocolate, I recommend buying chocolate products from smaller companies that have been certified by several labels. If you don't want to pay more for your chocolate, and if I had to choose a brand to avoid, it would be Nestlé :).
Thomas D.
Hello Thomas,
ReplyDeleteThank you for this article which seems very interesting to me! It is a subject that is rarely mentioned and yet we regularly consume chocolate. I have a fairly general question, but do you think we should boycott the Nestlé Company knowing that it goes against human rights? (Child labor, difficult working conditions, low remuneration, etc.)
Thank you in advance for your answer.
Célia P.
This comment has been removed by a blog administrator.
DeleteHi Célia,
DeleteThank you for your comment.
I think Nestlé should be boycotted.
Even though Nestlé was already the victim of a boycott campaign in Europe and in the USA in the 1980s, the company's way of producing still poses many ethical problems.
However, Nestlé has many important and well-known brands in many sectors : among them Nescafé, Nespresso, Ricoré, Perrier, Vittel, San Pellegrino, Nesquik, La Laitière, Crunch, Maggi, Buitoni, Herta, Chocapic, KitKat and smaller brands. Everyone (including me) consumes at least one of the company's products, and sometimes without even knowing it. Hence, I find it hard to boycott Nestlé. In a (my) perfect world, no one would consume those products. Personally, I would much rather buy a product from Ferrero than from Nestlé, even though Ferrero is not the world champion of ethics either.
Thomas D.