According to a report by Ethical Consumer, major chocolate companies have been accused of having insufficient ethical standards in their cocoa supply chain. Out of 82 brands examined, only 17 were found to be sourcing chocolate from suppliers who paid farmers a fair wage.
Consequently, there is a possibility that Advent calendars, chocolate Santas, and other holiday treats may have been manufactured using child labor. Approximately 60% of the global cocoa supply is sourced from West Africa, with an estimated six out of 10 cocoa-producing households in Ghana utilizing child labor and four out of 10 in Ivory Coast.
According to Ethical Consumer, brands such as Tony’s Chocolonely, Divine, and Chocolat Madagascar are recommended for paying Fairtrade International or Rainforest Alliance rates that are equal to or higher than fair rates. These brands also use chocolate that is produced in the country of origin, rather than from imported beans. This benefits the economies of cocoa-producing countries instead of European manufacturers.
The brands Mars, Nestlé, and Mondelēz, which is the owner of Cadbury, received a poor rating and were labeled as “brands to avoid”. Ferrero also received a poor rating.
Every company has a sustainability program, however, according to the researchers, these programs only include a portion of the cocoa suppliers. This results in some farmers not receiving any benefits.
In a previous investigation, it was discovered by Channel 4’s Dispatches that 10-year-old individuals were wielding machetes to gather cocoa for Mondelēz’s supply network.
Additionally, the tax practices, utilization of palm oil, impact on deforestation, and handling of plastic and packaging were evaluated for the 82 brands.
Jasmine Owens of Ethical Consumer stated that the chocolate industry exhibits severe inequality, as numerous cocoa farmers struggle with poverty while large chocolate corporations earn billions of pounds.
The majority of the world’s cocoa is produced in west Africa, and the living conditions for farmers there are typically terrible. However, it is consumers in Europe and the UK who consume the most chocolate. Therefore, we hold a great deal of power and responsibility for the working conditions of west African cocoa farmers, as we are the main reason for their cocoa harvest.
According to Owens, purchasing chocolate from Fairafric, ’57 Chocolate, and Chocolat Madagascar can be costly and challenging to obtain. However, they are worth it as a special indulgence or gift. On the other hand, Tony’s Chocolonely is easily accessible in supermarkets and is actively working towards transforming the chocolate industry.
Joke Aerts, of Tony’s Open Chain, the company’s supply chain platform, said it was trying “to put human rights at the core of purchasing practices” by using traceable cocoa beans, paying the living income reference price (the amount a typical farmer needs to make to be able to live), helping farming co-ops to become more professional, working with them for at least five-year periods, and helping farmers improve crop yields so they had less incentive to clear land to plant more cacao trees.
In 2020, a study conducted by the National Opinion Research Centre at the University of Chicago revealed that 43% of children residing in cocoa-producing regions of Ghana and Ivory Coast were participating in dangerous child labor, totaling approximately 1.56 million children.
According to Katie Bird from the International Cocoa Initiative, a nonprofit dedicated to ending child and forced labor in cocoa production, many children are pulled out of school by their parents to work on the farm. Poverty among farmers is a major contributing factor, and addressing this issue requires involvement from the cocoa industry, governments in cocoa-producing countries, civil society organizations, producers, and cocoa-consuming countries. This includes providing access to high-quality education and healthcare, as well as assisting farmers in diversifying their crops.
Ghana and Ivory Coast have laws against child labour, and police patrol some plantations. Yet the size of the cocoa-growing areas makes them hard to police, according to Mike Rogerson, a lecturer in operations management at Sussex University and an expert on modern slavery in supply chains.
According to Rogerson, the price of cocoa is determined worldwide on an annual basis, and these negotiations consistently leave those who are following them disappointed, with the exception of the four major companies that utilize cocoa. When companies do not pay a fair price, it ultimately results in parents being unable to support themselves and their families.
According to him, it is challenging for companies to monitor the origin of their cocoa due to the practice of farmers selling beans to each other. This is because cocoa is typically traded in 50kg bags and the beans are often blended together in various processing centers. He estimated that implementing DNA tracing for cocoa beans would cost the industry approximately £4m per year. However, there has been minimal interest from chocolate companies in adopting this technology.
Mondelēz did not give a direct response, but instead referenced their sustainability report. The report stated their goal of sourcing all chocolate through the Cocoa Life program by 2025 and increasing the number of farmers in the program to 300,000 by 2030.
A representative from Nestlé stated that they feel the evaluation from Ethical Consumer does not accurately reflect the thorough information they have shared about their efforts to sustainably source cocoa for their products. As a result, they believe it does not fully showcase the extent of their sustainability initiatives.
Nestlé has taken the lead in implementing innovative projects and programs to enhance the responsible acquisition of cocoa for our goods and to support the well-being of farmers.
Nestlé offers an “income accelerator program” to 10,000 farming families in Ivory Coast, providing them with the opportunity to earn an additional €500 per year for two years. Their goal is to expand to 160,000 families by the year 2030.
According to a representative from Ferrero, all of our cocoa is obtained from sources that adhere to independent guidelines, including Rainforest Alliance, Fairtrade Foundation, and Cocoa Horizons.
Ferrero collaborated with farmer groups to enhance their standard of living through strategies such as boosting cocoa yields and expanding their sources of income. They also focused on promoting the health and welfare of women and children, as well as protecting the environment.
The company stated that they have pledged to provide the Living Income Differential, which they endorse, and they also give all farmers an additional cash bonus on top of the standard price.
Ferrero remains dedicated to their cocoa sustainability program in order to create a beneficial and long-lasting effect on the cocoa industry.
A representative from Mars stated, “Our goal is for all of our cocoa to be ethically sourced worldwide and able to be traced by 2025. This goes beyond current certification standards and practices, and demonstrates our commitment to making a positive impact on farmers, communities, and the environment through three key areas of focus.”
“We have implemented tangible measures to create a positive impact in communities that grow cocoa. This is evident through the launch of our Cocoa for Generations strategy in 2018, which prioritizes the well-being of farmers and involves a 10-year investment of one billion dollars. This comprehensive approach recognizes that simply adjusting prices is not enough to address farmer income and welfare.”
Source: theguardian.com
