Presentation on theme: "University of Manchester"— Presentation transcript:
1 University of Manchester Beyond Fairtrade: Chocolate companies & socially sustainable cocoa sourcingStephanie BarrientosUniversity of Manchester
2 Research QuestionsWhy are companies mainstreaming socio-economic sustainability and fair trade in the value chains?Changing profile of cocoa-chocolate value chainSocio-economic challenges in cocoa farmingHow are chocolate companies addressing challenges of socio-economic sustainability in cocoa?Concluding Remarks
3 World Cocoa Producing Countries Cocoa is the strategic raw material for Chocolate manufacturing grown 8° north and south of equator.Cocoa: IDPM, University of Macnhester
4 Changing Global Cocoa-chocolate Value Chain Dismantling Cocoa Marketing Boards - SAPS 1980sConcentration of Chocolate confectionary industryProduction – Fragmentation70% from W. Africa – 90% smallholder farmersDecline Quality (except Ghana – COCOBOD)Price volatility and secular decline (-13% 1993–2005)Market segmentation: niche, quality, volumeFuture growth in Chocolate Demand in SouthAverage rate of growth 2 -3%, BRICS much higher (8-10%)Estimated 2020 cocoa shortage of 0.5 m tons + (Amarjaro)
5 Challenges to socio-economic sustainability (Ghana) Profile: ageing smallholder farmers (51 years)Low yields (40% of potential)Poverty (Mean per capita daily income $0.42 cocoa alone, $0.63 from all sources)Child labourPoor social infrastructure (water, health, schools, transport)Youth aspiration - to leave cocoaRisk to long term socio-economic sustainability of cocoa sourcing
7 Promoting socio- economic Sustainability in Cocoa Responses on child labourHarkin-Engel ProtocolIndustry/IUF/NGO initiatives (eg. ICI)Government plans (eg. Ministry of Manpower Ghana)Growth of Certification SchemesFairtrade, Rainforest Alliance, UtzCompany-civil society Initiatives:Farmers’ and cooperative group support - companies (including Kraft & Cargill) + NGO Care (since 2006)Cocoa Partnership (Cadbury/Kraft)Founded UK£45mAlliance with civil society organisations (north and south)Nestlé Cocoa Plan (2009)Gates Foundation (2009) with World Cocoa Foundation, GTZ, Mars, Hershey, Kraft etc. – cocoa and cashew programme AfricaICCO est. 60 producer initiatives
Your consent to our cookies if you continue to use this website.