The Limits of African Cocoa

             Every year, there are numerous days set aside to either commemorate an event or to remind us of some issue that continues to require being addressed. This past June 12 was World Day Against Child Labor, and organizations such as Green America wanted us all to keep in mind that despite many assurances from big players in the chocolate producing community, child labor still exists in Africa around the growing and harvesting of cocoa for chocolate.  However, this is an issue that is much more complex than it may seem.

            According to Green America, a nonprofit established to create a socially just and environmentally sustainable society, there are still more than one million child laborers in the cocoa sector, and for the first time in 20 years, the number of child laborers globally has increased. Chocolate sales exceed $100 billion per year, but most cocoa farmers live on less than $1 per day. Green America and other organizations feel cocoa farmers deserve to be paid a living income and that their children deserve to grow up free from the harms of child labor.  They blame companies such as Nestle, Hershey, Mars, Lindt & Sprungli, Godiva (Pladis), Ferrero, Mondelez, Meiji Co, Orion Corp, and Ezaki Glico Co. for promising for two decades to address the issue of child labor in the cocoa sector without achieving progress.

            A little more than 20 years ago, I was part of an effort in Miami-Dade County, Florida, to threaten a chocolate boycott by schools if chocolate manufacturers didn’t do more to help cocoa farmers and their families.  Specifically, the campaign focused on getting schooling for children of cocoa-farming families.  Companies pledged to do more and did start to take some action, but the ultimate success of such actions has been questionable for reasons described later.

                The World Cocoa Foundation (WCF), comprised of more than 100 member companies representing 80% of the global corporate cocoa market, as well as cocoa origin governments and civil society groups, was established to encourage responsible sustainable cocoa farming and raise farmers' incomes. Through its most recent African Cocoa Initiative II (2016-2021), WCF devoted $12 million to respond to the need for enhanced capacity in the cocoa sector among national institutions and to address specific gaps in cocoa productivity improvements, including the provision of better planting materials, pesticides and fertilizers, and credit to cocoa farmers.

Cocoa in West Africa contributes significantly to households, communities and national economies, WCF points out. Collectively, this region’s estimated two million smallholder cocoa farmers produce approximately 70% of the world’s supply.  WCF makes the case that cocoa is a highly valued cash crop across the region, one grown in association with multiple food crops presenting important food security benefits, and is often grown alongside other cash crops like rubber, oil palm, coffee and cashews. Exported cocoa also provides national economies with vital revenues, bringing in billions annually to the national economies of West African countries.

There is no doubt that WCF companies have made an effort to improve the lives of cocoa farmers in Africa and their families, but it is equally true, as Green America states, that there has been insufficient measurable progress and perhaps some slippage in terms of making life better for those involved in the African cocoa industry.

It must be acknowledged, however, that this past year has been difficult economically for everyone, but especially for those engaged in agriculture due to travel bans, curfews and border lockdowns.  The cocoa crop in West Africa was already harvested when the COVID pandemic hit there, and reports are that the crop last year was much larger than expected.  Normally, that would be good news, but the prices for cocoa declined, and extra supply contributed to a drop in prices.  In an August 2020 article for the consulting firm IHS Markit, Tedd George, Chief Narrative Officer at Kleos Advisory UK, described a global drop in demand for chocolate.

“Confectionary demand is down, meaning cocoa demand is down. Now, at first that might seem a bit odd because you might think, 'hold on, the one thing that people stock up on is chocolate and wine' and the thing is, people are and the price point for chocolate is the same as before.

“But the difference is the use of chocolate and cocoa in restaurants. All these high-end restaurants that buy cocoa for their menu have gone. Nobody is buying or consuming any of that. And then the amount of chocolate that is bought at airports, that has gone straight down too. So, we have seen a drop in confectionary demand of approx. 5-10% and that has definitely had an impact on prices,” George said.

Ten months after his assessment, with the world slowly emerging from the COVID lockdowns, curfews and other trade limitations, one might be reasonably optimistic about the prospects for the cocoa sector. However, George reported last year that more cocoa ended up being smuggled to Ghana and that's why Ghana had a bumper year during the Ebola crisis in 2011-12, with a lot of that cocoa being from Ivory Coast.  Chocolate and cocoa demand should be expected to rise dramatically soon, but if the needs of farmers cause them to maintain a high level of production, this over-supply will keep prices lower.

In colonial times, the value-added processing of cocoa in Africa was discouraged in favor of shipping raw cocoa to the colonial powers, who then sold processed cocoa powder and chocolate back to the source countries.  Ghana is intending to ramp up its own processing of cocoa, which one hopes other cocoa-producing countries will support among their local companies as well.  This will keep more profits, diminished or not, within the source countries and hopefully benefit farmers and their families to a much greater extent.

Still, supply and demand questions are not the only issue limiting the success of any program to better the circumstances of cocoa farming families.  The use of child labor and the limiting of farm children’s education involves traditions that are beyond the ability of outsiders to affect no matter how large the company may be or how philanthropic the nonprofit may be.

Alex Soho of the International Labor Organization has called poverty the driving force that pushes child labor. “They are poor. Their income is low. They cannot afford hiring adult laborers, so they have to rely, you know, on the work of their kids. This is true for farmers. This is true, also, for farm workers, who have to take them [children] along with them to the plantations, in particular, the whole family, to complete the tasks they’ve been assigned.”

Africans in isolated rural areas know the value of their efforts for the economic well-being of their families, but not necessarily the potential for their offspring to become highly educated and succeed beyond their imagination.  Farming is what they know can support them, and when you consider the high unemployment in African cities, even among educated youth, it is difficult to convincingly argue that educating boys and girls beyond a rudimentary level will result in greater success in life.  Changing this picture will require cooperation by the corporate and civil society communities.  Failure to do so will only diminish any chance for enhancing the long-term prospects of farm children and their families by presenting a confused picture.

Meanwhile, cocoa remains a valued product for more than providing sweet treats.  Cocoa has been used in medicine for three millennia. Polyphenols, naturally occurring antioxidants found in chocolate, have been linked to numerous health benefits, including reduced inflammation, better blood flow, lower blood pressure and improved cholesterol and blood sugar levels.  Cocoa is considered one of the richest sources of polyphenols, and is especially abundant in flavanols, which have potent antioxidant and anti-inflammatory effects.

Cocoa butter, which is high in fatty acids, is often promoted for its ability to hydrate and nourish the skin and improve elasticity. The fat in cocoa butter forms a protective barrier over skin to hold in moisture and also rich in natural plant compounds called phytochemicals. These substances may improve blood flow to the skin and slow skin aging by protecting against damage from the sun’s harmful UV rays. One common use of cocoa butter is to smooth scars, wrinkles, and other marks on the skin.  While more research needs to be conducted, cocoa butter is believed to have the potential to prevent and treat skin diseases and may also protect the skin from damage that can lead to premature aging.

So, cocoa has broad value beyond chocolate that farm families must be enabled to benefit from more – now and into the future.