| Share facebook | RSS

2
Comments

ambassador Report View

[Free topic] The real, environmental cost of chocolate.

by Diana Gamazova | 08-06-2021 21:35 recommendations 0

Hello! 
So today I want to talk about the chocolate production and what is really staying behind the colourful wraps of our beloved sweets. 

Chocolate is one of the most beloved and pot - consumed sweets in the world! At least half of all chocolate in the world is sold in Europe, twenty-two percent of the remainder is sold in the United States. This means that every person in Europe or North America consumes an average of about 5.2 kg per year! 

Chocolate consumption is becoming more and more popular around the world, but the origin of cocoa and its production conditions are not familiar to many at all. The cocoa production chain is very complex and confusing, and it is characterized by great injustice towards small cocoa farmers. This leads to impoverishment, exploitation of workers and the use of child labour.
Although most cocoa is consumed in the Northern part of the planet, cocoa grows in tropical equatorial jungles. Only such a climate is necessary for the growth of cocoa trees. Every year
, up to 3.5 million tons of cocoa beans are produced .

Cocoa cultivation is associated with heavy physical labor and many people work on cocoa plantations. Cocoa pods do not ripen at the same time,
so cocoa trees require constant supervision, care and harvesting. This means that the tree simultaneously grows flowers and pods in different stages of maturation. Cocoa trees are very susceptible to diseases that spread very quickly in close rows of trees. Therefore, the cost of growing cocoa is very high.

When the cocoa pods are ripe, they are manually cut from the tree. This is followed by the fermentation, drying, cleaning and packaging process. Farmers sell the packaged bags to intermediaries, who in turn export them. Raw cocoa is sent to the producing countries, where it is roasted and ground.
    Piiratud kasvuala,

Cocoa cultivation: Limited planting area, a source of income for many
   
Cocoa is the main source of income for 5.5 million small farmers and provides daily bread for 14 million farmers from developing countries.3 In some West African countries, such as Ivory Coast and Ghana, cocoa cultivation is the main source of income for 90% of local farmers. At the same time, the income of many ka - kao farmers does not exceed $ 1.25 per day.

Only four countries in West Africa account for 70% of the world's cocoa production: Ivory Coast, Ghana, Nigeria and Cameroon.4 One third of the world's cocoa grows in Cote d'Ivoir alone. Ivory Coast is the largest cocoa producer in the world. The next cocoa producer, Ghana, exports 21% of all cocoa in the world. Indonesia, Nigeria, Cameroon, Brazil and Ecuador are also important cocoa exporting countries.5 More than 90% of the world's cocoa is grown on small farms of no more than 2-5 ha, and only 5% of the cocoa comes from large farms larger than 40 ha. 

Tough competition and a lot of losers

In the competitive cocoa market, there are only a few big names. They are fighting among themselves for market share and for higher profits. Against this background, cocoa farmers suffer primarily, as they receive less and less from net sales. The cocoa market is dominated by 5 large companies that are engaged in the field of grinding cocoa beans: Cargill, Barry Callebaut, ADM, Petra Foods and Blom - mer. They occupy more than half of the market share and can have a huge impact on the formation of cocoa prices. Almost two-thirds of the chocolate market is owned by five companies. In 2012, the global market for chocolate products was estimated at $ 80 billion. This figure is likely to increase to $ 88 billion by 2014.7

Firms located in high - consumption countries account for the largest share of profits in the cocoa market. Cocoa farmers from developing countries receive only a small fraction of the price of a standard bar of chocolate: 6.4% in Ghana, 5.7% in Ivory Coast8. Although at the end of the 1980s, 16% of the farmers ' pockets reached this level. For comparison,
during this time, the share of chocolate producers increased from 56% to 70%, and the share of intermediaries increased from 12% to 17%.

Unequal partners – unfair trade

The great competition in the cocoa
and chocolate market and the extreme inequality of rights between small farms and huge international firms have led to a sharp drop in cocoa prices. At the same time, since the late 1980s

The pan-European campaign for fair production of chocolate
years, the profits of international producers of cho-colada have increased significantly, although the price of cocoa beans has halved.
Cocoa farmers are poorly organized and lack the knowledge to track the dynamics of price formation. They are forced to sell their crops at a price set by intermediaries. Millions of small farmers versus big shoko-lad producers is an unequal game. In order for the voices of farmers to be heard and the terms of procurement to be changed, it is necessary to create large interest groups.

Due to local commercial structures, taxes, and the poor quality of cocoa beans, farmers receive only a small fraction of the global price of the product. For example, only 40-50% of the world cocoa price reaches Ivorian farmers and 70% of the world cocoa price reaches Ghanaian farmers.9
In addition, since 1989, cocoa farmers have suffered losses due to strong price fluctuations associated with plant diseases, pests, droughts and political instability in cocoa - producing countries. Under such conditions, it is difficult for farmers to make long-term plans.

Global speculators in the cocoa bean market benefit from sharp price fluctuations – this also has a negative impact on price formation. Cocoa traders can compensate for fluctuations in the price level by storing those varieties of cocoa whose shelf life is long until prices start to rise again. In cocoa-producing countries, farmers are forced to sell cocoa immediately, as they do not have normal conditions for storing the product.

Severe consequences of lower prices

The consequence of the price race is the impoverishment of millions of farmers. Despite an almost 20% increase in demand for cocoa in the coming years10, and an increase in sales of chocolate producers, many farmers are no longer able to cover their living expenses. In the world of chocolate business with its large profits, poor farmers who are unfamiliar with global trends are the losers.

Exploitation of workers and the use of child labour

Unstable and low earnings lead to serious social and environmental problems. Limited economic resources lead to a deterioration of working conditions, which in turn leads to violations of internationally recognized principles, for example, the established standards of the Universal Declaration of Human Rights and the International Labour Organization (ILO) are not observed. Plantation workers do not receive decent wages, and they lack basic housing facilities and medical care.
In order to keep costs even lower, child labor is often used on the plans. One of the most serious problems is human trafficking, often involving children. Today, up to 2 million children work on cocoa plantations in West Africa. More than 500,000 of them do work that has a serious negative impact on their physical and mental health. Especially in Côte d'Ivoire, the trafficking of children and their work on plantations is a very big problem.11
Child labour is a serious violation of human rights. This is strictly prohibited by the International Labour Organization (ILO Requirement 182 and 138)

Non-sustainable agriculture

In order to compensate for the decline in income, farmers are developing more and more areas for growing cocoa. All this is due to the rejection of sustainable, ecological and diverse farming. Rainforests are being cut down for additional fields. One of the results of non-sustainable development and the use of fertilizers and insecticides is the deterioration of fertility and contamination of water and soil. Due to improper farming, up to 40% of the crop is lost annually.
12 Farmers abandon other agricultural products in favor of cocoa production. This, in turn, together with the general volatility of cocoa prices, makes farmers ' incomes even more unstable, and the destruction of biodiversity leads to an ecological catastrophe. Farmers lack the knowledge of sustainable development that could improve the productivity and quality of cocoa beans.

Fair trade guarantees a decent life

In order to end the negative consequences that cocoa production brings to farmers and their families, it is necessary to promote change



 

no image

  • Dormant user Diana Gamazova
 
 
  • recommend

2 Comments

  • Debbie Mentor says :
    Dear Diana,

    This is your mentor Debbie.

    As a chocolate lover?? I feel ashamed that I didn't know about some of these issues regarding chocolate production. I'm used to buying Fair Trade chocolates but there are so many complex problems! I hope that in the future, Fair Trade mark will no longer be needed because it has become a norm in the industry.

    Thanks for sharing an informative article. Can??t wait to read more from you :)

    Green Cheers,
    Debbie
    Posted 13-06-2021 10:10

Dolma Diki Sherpa

  • Dolma Diki Sherpa says :
    Hello Diana
    Greetings from Nepal

    Thank you for sharing detail about cocoa production and its negative consequences.

    keep writing, keep sharing

    Regards
    Dolma

    Posted 10-06-2021 13:52

Post a comment

Please sign in

Opportunities

Resources