1. University of Manchester
Beyond Fairtrade: Chocolate companies & socially sustainable cocoa sourcing
Stephanie Barrientos
University of Manchester

2. Research Questions
Why are companies mainstreaming socio-economic sustainability and fair trade in the value chains?
Changing profile of cocoa-chocolate value chain
Socio-economic challenges in cocoa farming
How 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 1980s
Concentration of Chocolate confectionary industry
Production – Fragmentation
70% from W. Africa – 90% smallholder farmers
Decline Quality (except Ghana – COCOBOD)
Price volatility and secular decline (-13% 1993–2005)
Market segmentation: niche, quality, volume
Future growth in Chocolate Demand in South
Average 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 labour
Poor social infrastructure (water, health, schools, transport)
Youth aspiration - to leave cocoa
Risk to long term socio-economic sustainability of cocoa sourcing

7. Promoting socio- economic Sustainability in Cocoa
Responses on child labour
Harkin-Engel Protocol
Industry/IUF/NGO initiatives (eg. ICI)
Government plans (eg. Ministry of Manpower Ghana)
Growth of Certification Schemes
Fairtrade, Rainforest Alliance, Utz
Company-civil society Initiatives:
Farmers’ and cooperative group support - companies (including Kraft & Cargill) + NGO Care (since 2006)
Cocoa Partnership (Cadbury/Kraft)
Founded UK£45m
Alliance 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 Africa
ICCO est. 60 producer initiatives

8. Kuapa Kokoo
Cooperative of

9. Concluding Remarks KEY FINDINGS KEY RECOMMENDATIONS
Value chain (dis)articulation: companies v. producers
Sustainable cocoa supply no longer assured
Development shift at producer level
KEY RECOMMENDATIONS
Rebalance value chain – companies, certifiers, trade
Building capabilities at grass roots - stakeholder initiatives (inc. government, donors, NGOs, TUs)
Vision - farmers and workers organised and empowered as productive value chain actors

10. Capturing the Gains