The worldwide value chain of cocoa and chocolate is changing at a fast pace, showcased by the robust rise in chocolate consumption and cocoa market share in recent years. The data shows that worldwide cocoa prices per metric tonne increased from around $2500 in 2019 to $9500 by June 2024, while chocolate consumption rose from around 2.9 million metric tonnes to 3.03 million metric tonnes between 2019 and 2024. It’s worth noting that consumer behavior is also shifting in the chocolate market, with more individuals prioritizing sustainable food production as they are more aware of the environmental impacts of their food choices. Rather than just buying chocolate, consumers are now showing interest in the ingredients used as well as the processes of producing chocolate. While many people love chocolate, the sad reality is that cocoa production has a less sweet side, as it negatively affects the environment due to deforestation, the use of chemical fertilizers, and much more.
It’s nice to treat yourself to some chocolate whenever you feel like it, but have you ever asked yourself where your chocolate comes from? Unfortunately, the cocoa industry has many negative effects on the planet. First, it’s a massive contributor to deforestation and biodiversity loss in regions such as West Africa. Farmers who want to expand their cocoa plantations clear out rainforest vegetation so they can have space for more farmland, and they sometimes encroach on protected forest reserves in the process. Such actions, unfortunately, harm the environment in significant ways, threatening species of animals and plants as they lead to drastic temperature variation and the loss of habitat for the species living in forests.
Furthermore, the industry relies extensively on agrochemicals, which aim to increase productivity. However, there’s no proof that farmers truly benefit from chemical fertilizers in terms of net income – in fact, it’s quite the opposite, as they worsen farmers' financial situations. Unfortunately, child labor is also a massive problem, particularly in West Africa, as children are working in harsh conditions rather than going to school. According to the U.S. Department of Labor, around 1.56 million children are involved in child labor related to cocoa production, exposing them to potential injuries, hazards, and other undesirable conditions.
Given the planet's current state, curbing the challenges of cocoa farming is a necessity, and the good news is that several organizations are taking steps to promote a more sustainable future for the cocoa industry. For example, the Fairtrade certification program seeks to boost cocoa farmers' living conditions by focusing on sustainability and fair compensation. This offers farmers a Fairtrade Premium and a Fairtrade Minimum Price, establishing financial safety, covering the costs of eco-friendly production and offering extra funds for community development projects. This model keeps farmers safe from market volatility and allows them to invest in their futures more confidently while also promoting eco-friendly farming practices and the formation of cooperatives.
Sustainability is an issue that needs to be addressed at a larger level, and it requires the involvement of different actors at various cocoa value chain levels. These parties must create transparent traceability systems to ensure food safety and make it their responsibility to protect the plants and animals (particularly the endangered floral and fauna species) and the environment and to enhance other actors’ livelihoods across the value chain. This becomes even more important nowadays when worldwide chocolate consumers want transparency regarding the source of the raw materials used in cocoa production (traceability), in which environment was produced (free of protected areas), what labor went into the production process, as well as the producers’ living conditions.
Businesses need to be sustainable if they want to meet consumers where they are, and to this end, many of them are buying cocoa wholesale from reputable cocoa suppliers that prioritize sustainability and promote a positive future for the cocoa industry. Modern consumers want transparency when it comes to the chocolate products they buy, and as a business, you must emphasize the origin of the raw materials, guaranteeing the quality and specificity of your products. Ultimately, this will help you connect with consumers and offer them peace of mind, knowing that they can put their trust in you, as your brand has fair trade partnerships and responsible sourcing.
Whether buying from a meat, cocoa, or a nuts supplier, it’s of the utmost importance to put sustainability at the core of business operations. This will contribute to a positive consumer experience, ensure people will continue to buy from you and maintain your reputation as a business with a mission statement that customers can resonate with.
As part of the collective action to end deforestation that occurs due to cocoa production, the World Cocoa Foundation, Côte d'Ivoire and Ghana governments and leading chocolate and cocoa businesses have partnered to launch the CFI, or the Cocoa and Forests Initiative, which encourages reforestation in the leading cocoa-producing countries of the world. This partnership highlights the importance of collaboration between civil society, industry and government when it comes to tackling the environmental impact of the cocoa industry, focusing on the implementation of actionable plans that will protect and restore forests, enhance farmer livelihoods, and encourage sustainable cocoa farming practices. The full impact of the CFI is yet to be seen, but this is indeed a significant step towards reconciling cocoa production with the conservation of the planet.
Cocoa production practices have been threatening the environment for a while now, and given the actual state of the planet, there’s no time to waste when it comes to moving towards sustainability in this sector. To this end, it becomes paramount to commit to several actions, such as ethical sourcing of cocoa, implementing traceability systems in the cocoa supply chain, being open about the practices used in business when producing cocoa, promoting biodiversity and ensuring farmers get a fair price for the cocoa they produce, to name a few. This way, the cocoa industry can move towards an eco-friendlier future, ensuring it continues to be a viable source of income for farmers worldwide while also keeping the planet healthy.
