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Cocoa

The cocoa tree (Theobroma cacao) is originally from Central America, where its seeds were highly valued by the Aztecs and the Mayas. Introduced to Europe by the Spaniards, the drink called chocolatl made of cocoa beans gained wide popularity by 1600. Nowadays, cocoa is mostly used for the production of chocolate, although it is also used in cosmetics and as fertilizer or animal feed.

Did you know…

That chocolate must consist of at least 30% of cocoa before it can be called chocolate?
People in Ivory Coast produce cocoa, but hardly ever eat chocolate
In the Netherlands alone, people eat an average of five kilos of chocolate per person a year. This needs 1500 – 3000 processed cacao beans

Most important export countries

Cote d’Ivoire
Ghana
Indonesia
Nigeria
Cameroon

Most important production countries

Cote d’Ivoire
Ghana
Indonesia
Nigeria
Cameroon

Production chain

The production of cocoa takes place mainly on small scale farms in developing countries. Around 90% of the cocoa production of the world comes from farms with only two to five hectares. After the beans have been dried, they are (mainly after exporting) made into cocoa liquor: the base of all cocoa products.

Problems

The low income earned from selling cocoa makes hired labour too expensive, which frequently leads parents to use child labour to increase family income. Common difficulties that small farmers face are crop loss, instable cocoa trading price, high levels of corruption and little access to credit. The high import tariffs from the EU do not stimulate. Deforestation is also a persistent issue in the sector. Erosion and loss of soil fertility is also common. The excessive use of chemical pesticides is widespread to point of being hazardous to the health of workers that experience headaches, tiredness, vomiting, and nausea or skin problems after spraying. Some changes slowly arise to try and make the industry more sustainable. Media has played a role in uncovering the truth behind chocolate.

Major Chain Issues

In the cocoa sector, Fairfood International has identified the following major chain issues:

Major chain	Production stage
Harmful Agricultural or Aquafarming Practices	Production
Insufficient Income and Income insecurity	Production and Processing
Child labour	Production
Unhealthy and unsafe working conditions	Production
Degradation of natural ecosystems	Production
Unfair import Tariffs and Quotas	Outside the chain

*Brand Owners are required to cover a minimum number of five out of six of the priority issues.

Solutions

The guide below shows certification schemes whose standards indicate a match with some or all of Fairfood’s researched major issues for this commodity. To learn more about the schemes, click on their logo.

Fairtrade	Global Gap	Rainforest Alliance	Naturland	EU Organic Labels	UTZ Certified	IMO Fair for Life
Production	Production	Production	Production	Production	Production	Production

Customised sustainability initiatives
In addition to making use of standards and certification schemes, major issues in this commodity could also be addressed in a customised manner. The box below outlines a few examples of initiatives that deal with sustainability issues in this particular sector. Companies could join some of the platforms or roundtables mentioned below. These could serve as a stepping stone to increased sustainability. Other initiatives, in the form of corporate programmes and chain partnerships, could serve as inspiration for replication by other companies within the sector. To learn more about any of the initiatives, click on their logo.

Corporate Program	Divine Chocolate was established in 1998 by Kuapa Kokoo, a Fairtrade certified co-operative of cocoa farmers in Ghana, together with several other organisations. Their business model facilitates direct access to the mainstream UK and US chocolate markets – enabling cocoa farmers not only to receive the Fairtrade deal for their cocoa but also to be shareholders in the company selling the chocolate bars. Kuapa Kokoo represents the interest of the farmers during the decision-making process with regards to the production and sales of Divine chocolate. Priority issues are addressed and verified by this initiative.
Platform	The first meeting of the Round Table for a Sustainable Cocoa Economy (RSCE) was held in 2007 in Accra, Ghana. Representatives of several different stakeholders attended the meeting with the goal of initiating a multi-stakeholder dialogue on sustainability in the cocoa sector. The RSCE uses their website as a platform for the exchange of best practices in the industry. Stakeholders working with cocoa can join the RSCE and share their expertise on environmental, economic and social issues with other stakeholders.
	The Sustainable Tree Crop Program was established in 2000 as a public-private partnership between major players in the global cocoa industry, local private sectors, farmers, national governments, NGOs, research institutes and development investors. It currently operates in five West African countries. The Sustainable Tree Crop Program’s goals are to improve the economic and social well-being of smallholders while simultaneously improving the environmental sustainability of their tree crops. STCP aims to achieve these goals by training community farmer groups, providing technical assistance, improving the trade information system and eliminating the worst forms of child labour on farms.
Chain partnership	The SUCCESS Alliance (Sustainable Cocoa Enterprise Solutions for Smallholders) is a public-private initiative that focuses on facilitating the integration of small-scale cocoa farmers in the international value chain. The Alliance is active in Liberia, Ecuador, Vietnam, the Philippines and Indonesia and aims to improve the livelihood of small-scale cocoa farmers by promoting more sustainable production and marketing methods. The SUCCESS alliance provides technical guidance and training in financial management, business planning and marketing for organisations and cocoa farmers.