Ivory Coast and Ghana, the world’s top two cocoa producers, combined contribute two-thirds of the world’s cocoa beans, the main ingredient in chocolate. When you consume chocolate, it is 70 percent likely that it originated from West Africa. Despite the region’s crucial role, in the over $130 billion annual revenue derived from the chocolate and related industry, West African-producing countries get less than 5 percent. The story behind this beloved treat is far from sweet for those who toil to produce its essential ingredient.
The Bitter Truth Behind Chocolate: A Journey to West Africa’s Cacao Farms
Imagine working under the scorching West African sun amidst dense cocoa plantations where the air is thick with the earthy aroma of cocoa beans. Far from the gleaming chocolate shops—in New York City’s Fifth Avenue, London’s Bond Street, Paris’ Avenue des Champs-Élysée, and other distant cities—lies the heart of the cocoa trade, a world of harsh realities and unseen struggles.
Many farmers toiling here have never tasted the chocolate that brings joy to millions worldwide. Their lives revolve around labor-intensive tasks, from tending young cocoa trees under the relentless heat to carefully harvesting the pods that contain the precious beans. It’s a life of backbreaking work and uncertain rewards.
Beyond the farm gates, the global cocoa industry thrives, worth billions of dollars. Yet, the wealth seldom trickles down to these farmers who remain impoverished. Fairtrade initiatives have improved conditions, but much more is needed.
The Harsh Realities of the Cocoa Trade
For cocoa farmers in Ivory Coast and Ghana, the dream of chocolate is a distant reality. These farmers often live in small, rural communities with scarce basic amenities. The work is grueling: from dawn until dusk, they tend to their cocoa plants, ensuring they are healthy and productive. The harvest season is particularly demanding, requiring meticulous care to properly extract and dry the beans. Despite their crucial role in the global supply chain, these farmers see little of the wealth generated from their labor.
An elderly farmer in Ghana who has been cultivating cocoa for over thirty years once said, “We work so hard, but we see so little. Our children struggle to attend school, and healthcare is a luxury.” His story is familiar and echoed in countless villages across West Africa.
Beyond Fair Trade: The Case for Local Value Addition
As a value chain leader, I have seen firsthand and helped facilitate the positive transformative impact that local value addition brings to communities while strengthening corporate brands and enhancing shareholder value. To truly transform the lives of cocoa farmers, we must advocate for local value addition. Processing cocoa beans into higher-value semi-finished or finished chocolate involves relatively simple stages. Doing more of these stages in countries like Ivory Coast and Ghana would boost local economies and increase their export value. This shift creates jobs and ensures more of the $130 billion annual revenue from chocolate benefits the producing communities. Local processing fosters economic growth and promotes fairness and sustainability in the cocoa trade.
Local value addition would mean that cocoa-producing countries could retain more value from their primary exports. For instance, Ivory Coast and Ghana could develop more facilities to produce cocoa butter and powder and manufacture more chocolate products locally instead of exporting raw cocoa beans. Both countries prioritizing this approach would create many jobs, from factory workers to quality control experts, and significantly bolster local economies.
While farmers may not likely be the value-added manufacturers because of the different skills required, local processing creates a more robust demand for their cocoa beans, stabilizing prices. Those engaged and trained with processing expertise will improve their living standards and, hence, their entire communities.
Importantly, from a business efficiency standpoint, directly increasing chocolate production in cocoa-producing countries like Ivory Coast and Ghana makes business sense. After overcoming initial challenges, multinationals will benefit from a lower cost of production due to reduced transportation costs, comparatively lower labor costs, and increased local value capture. Ultimately, this shift will lower global chocolate prices while increasing corporate margins. China is the fastest-growing market for chocolate consumption. Given their strong interest in the region, they will likely offer West African communities a sweeter chocolate manufacturing deal.
Role of Consumers: Advocating for Economic Contribution Disclosure
American and European consumers, as the largest purchasers of chocolate, hold immense power in this transformation. By advocating for transparency and accountability from multinational chocolate manufacturers, we can ensure that the benefits of cocoa production are shared more equitably. Disclosing the percentage of the chocolate’s total value produced in the source country should be as commonplace as listing nutritional information on the packaging. This way, every purchase becomes a choice to support sustainable practices and fair treatment of farmers, highlighting the shared responsibility of consumers in this collective movement.
The industry and consumers must make a conscientious effort to move beyond the current inequities in the cocoa trade. Chocolate manufacturers should engage in local value addition and disclose the economic contributions made in source countries. This transparency would empower socially conscious consumers to make informed purchasing decisions, aligning their love for chocolate with a commitment to fairness and justice.
Consider the story of a young woman in Ghana who decided to start her own chocolate business after years of working on a cocoa farm. With support from local organizations, she learned the art of chocolate making. Today, her small enterprise employs several people from her village, and she proudly markets her chocolate as “Made in Ghana.” Her success has inspired others in her community to explore similar ventures, creating a ripple effect of empowerment and economic growth.
Driving Change Through Conscious Consumption
Consumers can take several actions to support this shift:
- Choose chocolates that come from companies that practice transparency in their sourcing.
- Advocate for labeling that indicates the percentage of the chocolate’s value added in the source country.
- Support policies and initiatives encouraging local processing and value addition in cocoa-producing countries.
For example, a global chocolate brand recently launched a campaign to source a significant portion of its cocoa from local producers in West Africa, ensuring that a substantial part of the value chain remains within the region. This initiative improved the brand’s image and contributed significantly to the economic development of the cocoa-producing communities.
Path Forward: Transforming Chocolate Dreams into Reality
The story of chocolate is one of joy for consumers but hardship for the farmers who produce its vital ingredient. By understanding the realities faced by cocoa farmers in West Africa and advocating for local value addition, we can ensure that the sweet taste of chocolate also brings sweetness to the lives of those who make it possible. It’s not just a business imperative; it’s a moral one. Together, we can transform the cocoa trade into a force for good, providing prosperity and dignity to the farmers who are its backbone. Supporting local value addition and demanding fair practices can ensure that cocoa farmers receive a fair share of the industry’s profits, transforming lives and communities. Ultimately, by demanding equitable sourcing and supporting local value addition, we can turn chocolate dreams into reality for farmers and their communities.
About the Author
Kenneth D. Johnson is a seasoned international business development authority focusing on Value Chain Management and compliance-related issues. With over two decades of experience, he excels in developing and implementing transformative projects across diverse countries. His expertise spans private sector development, compliance, value-chain linkages, marketing, and branding. He spearheaded value chain initiatives at the African Development Bank. He is a principal at Devconia, LLC, a former marketing executive with Accenture and PricewaterhouseCoopers in New York City. As a thought leader, he shares insights through speaking engagements, conferences, and forum discussions.
