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Bitter fruit

2018-01-17

Why aren’t bars of chocolate made where cocoa is grown? Author Frank Brunner analyses the industry’s fragile value chain from the plantation to the supermarket

By Frank Brunner

A person with short hair is looking at the camera against a plain background, wearing a dark jacket.

Frank Brunner is a master of political science and a journalist. He works as an editor and writer for various daily newspapers in Berlin, and for Spiegel Online and Zeit Online. Later editor-in-chief in the science journalism department of W. Bertelsmann publishers. Currently a writer for Zeitenspiegel Reportagen and in the Baden-Württemberg office of stern.

All contributions

In the morning, Gerd Müller visited Adzopé-Akoupe, a region in the south-west of Ivory Coast. That’s the location of the cocoa cooperative, Coopaako Coopca, where the popular beans are not harvested by children. Not something to be taken for granted in western Africa. In the hope that this will serve as a model, the Federal Government is supporting a project called Pro-Planteurs, which is committed to the sustainable cultivation of cocoa. Now Müller, Minister for Economic Cooperation and Development, is on his way to the Ivorian capital, Abidjan, where the only chocolate factory in Ivory Coast is based. It’s 1st March 2017, and the minister's car weaves through the heavy traffic.

As Müller reaches the production facility, Gunther Beger is still stuck in traffic. In the Federal Ministry for Economic Cooperation and Development (BMZ) Beger is responsible for fundamental matters relating to development aid and is a member of Müller's Ivory Coast delegation. A little later, he arrives at the chocolate factory. He dons his headwear, ties his face mask on and marvels at the modern equipment. ‘It was all highly professional – the packaging, the hygiene standards – and the chocolate tasted excellent, too,’ says Beger. The French firm, Cémoi, has actually been manufacturing in Abidjan since 2016, not only for the domestic market, but also for export. 5,000 tonnes a year. This is not the factory’s maximum capacity.

Ivory Coast is the biggest cocoa supplier in the world. Every year almost two million tonnes leave the country – that’s 40 per cent of the amount grown worldwide. It would seem reasonable to produce chocolate where cocoa grows – especially as most of the money is earned from the end product and not the raw material. The people in Ivory Coast would profit from the manufacture of chocolate. But apart from a few backyard businesses, Cémoi is the only company in the industry in Côte d‘Ivoire. Why is that?

Anyone wanting to know why the world's appetite for chocolate leaves so little prosperity behind in the countries that grow cocoa, will have to follow the trail from the plant to the ready-to-eat bar. On the way they’ll encounter cocoa growers, confectionery companies and consumers. Then there are governments and non-government organisations.

The growers

Cocoa growing is a laborious business. The trees grow only along a narrow tropical strip close to the Equator. Until they begin to bear fruit, the growers don’t earn any money for years. Instead, they have to pay for their lease on the land, buy fertilisers, or pay membership fees to their cooperative. About 5.5 million people around the world try to make a living in this way – mostly on just two to five hectares of land. On average, a grower harvests approximately two tonnes of cocoa a year. Friedel Hütz-Adams, research assistant at Südwind-Institut für Ökonomie und Ökumene (institute of economics and ecumenism), estimates that around 4.9 million tonnes of cocoa will be harvested worldwide this year.

First of all the growers open the fruits, separate the beans from the husks, lay them on the ground and cover them with banana leaves. Then the cocoa ferments for several days. Finally the growers transport the cocoa to local collection points, where local dealers buy it. In 2017, growers in Ivory Coast get roughly 1,300 US dollars for a tonne of cocoa. That's generally the income for the entire year. At the beginning of the 1980s, cocoa cost more than four times as much – more than 5,500 dollars. An income sufficient to secure a living is hardly possible after such a drop in prices.

It can’t be right that the cocoa growers are unable to make a living from their hard work

The growers often have only one other option: they must reduce their costs and produce more cheaply. That means, instead of seasonal workers, children work on the plantations. According estimates by the International Labour Organization (ILO), 1.4 million children work on cocoa plantations in Côte d‘Ivoire alone.

During his visit to Abidjan, the Minister for Economic Cooperation and Development, Gerd Müller, was critical of the situation. ‘It can’t be right that the cocoa growers are unable to make a living from their hard work, and children, instead of going to school, have to slave away on the plantations,’ said the CSU politician.

The chocolate manufacturers

Once the growers have sold their harvest, the beans soon arrive at the port in Abidjan. From there they go to Europe, where they are roasted, ground and made into cocoa butter or cocoa powder. 75 per cent of the cocoa used in Germany comes from the two most important cocoa-growing countries, Ivory Coast and Ghana.

Only a handful of international companies monitor the processing and trade. At the end of the value chain are large retail companies and discount stores. It's mostly he latter that force prices down. Because of this, the Federal Government’s development aid expert, Gunther Beger, feels that companies also have an obligation. ‘We tell the industry, you need cocoa, so it must be in your best interests to improve conditions locally.’ An initial approach involves the ‘Forum nachhaltiger Kakao’, a joint initiative of the Federal Government, industry, commerce and NGOs, with the aim of improving living conditions in cocoa-growing countries.

The non-government organisations

At the moment it's mainly various NGOs that are trying to help the cocoa growers. Organisations such as Fairtrade and Rainforest Alliance issue certificates if growers or cooperatives provide evidence of sustainable growing methods. This includes dispensing with child labour. According to the Federal Ministry for Economic Cooperation and Development, so far 40 per cent of Germany’s cocoa has been rated as sustainable. This can be identified by a seal displayed accordingly on the packaging of the chocolate. Head of division, Gunther Beger, says, ‘Our target is 100 per cent sustainable cocoa.’

Friedel Hütz-Adams also sees room for improvement. However, the cocoa expert has a fundamental problem with certification. ‘The premiums for sustainably produced cocoa – 180 dollars per tonne through Fairtrade – are far too low,’ he complains. This cannot guarantee an income sufficient to secure a living.

The Federal Government

For the coalition that consisted of the CDU/CSU and SPD until the autumn of 2017, Ivory Coast was one of the countries that Germany was working with and helping to build up its economic structures. One of its aims is for cocoa to be processed there, thus giving the growers a larger share in the value chain.

Our target is 100 per cent sustainable cocoa

Agricultural expert, Beger, doesn't think that international confectionery manufacturers in Abidjan produce chocolate on a large scale. ‘We can hardly make the industry set up major production facilities in Ivory Coast.’ But he believes that intermediate steps are possible to enable cocoa powder to be produced on site.

Nor does Südwind’s Friedel Hütz-Adams think that there are any significant quantities of chocolate ‘Made in Ivory’. In principle it would be right for the growers to be given a bigger share in the value chain, but at the moment the infrastructure is totally inadequate. Chocolate has to be cooled, but electricity is expensive in Ivory Coast. Even worse, because of the obsolete and overloaded grids, the lights often go out in Abidjan and elsewhere. The situation is similar in Ghana. Poor roads and obsolete ports are also locational disadvantages. ‘An upgrade would cost billions. What companies would invest that much just because it makes sense in terms of development policy?’ asks Hütz-Adams.

The consumers

One Wednesday morning in October 2017 in a branch of Lidl in Berlin-Steglitz. The chocolate shelf is a good ten metres long, directly in the entrance. Opposite the checkouts the sales assistants have another display stand with chocolate on it. Meanwhile the discount store is also offering certified products, such as ‘Fairglobe milk chocolate’ (containing 32% cocoa with cocoa beans from Ghana). If you enter the code from the back of the packaging on the Fairtrade website, you’ll discover that the cocoa comes from the Ghanaian cooperative, Kuapa Kokoo. Clearly happy growers smile at visitors to the home page, while the boss assures them that the money from the cultivation of cocoa benefits the local community. How much money, she doesn’t say. A bar (100 grammes) costs 1.29 euros in Lidl.

We must make consumers aware that sustainably produced chocolate cannot cost 50 cents

Customers can pick up an own brand Fin Carré alpine milk chocolate, with Fairtrade and UTZ labels, for only 49 cents. The cocoa comes from Ivory Coast. On the back, Lidl advertises its support for the ‘sustainable and viable cultivation of cocoa’.

For the Südwind expert, Hütz-Adams, that's far too cheap. ‘We must make consumers aware that sustainably produced chocolate cannot cost 50 cents,’ he says. The Federal Minister for Economic Cooperation and Development agrees. ‘As consumers, we have the power to enable cocoa growers to make a living from their hard work,’ said Gerd Müller during his visit to Ivory Coast.

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Stronger toghether: Six collaborations for fair agricultural supply chains

A Listicle by Yvonne Bielfeld

For everyone in the supply chain to benefit, it is essential that politics and business work together. The measurable successes of such partnerships are demonstrated by the following six projects: they show how cooperation with the business sector can make supply chains fairer, more resilient, and more sustainable step by step.

A man collects natural rubber from a tree, holding a container and tapping tool in a lush forest. | © GIZ

From the Tree to the Street: The Story of Natural Rubber

A Contribution by Carlos Castellanos & Yvonne Bielfeld

The shoe manufacturer Cueros Vélez as a good example of private sector responsibility: the photo gallery shows how the bark of the rubber tree becomes a reliable yet deforestation free companion on our roads.

A smiling farmer stands proudly in front of a red tractor in a freshly plowed field under a clear blue sky.

How much private investment is the agricultural sector able to bear?

By Pedro Morazán

Small farmers in developing countries must modernise their farming methods, but poorly understood reforms could exacerbate poverty instead of alleviating it.

Two women in vibrant traditional attire walk joyfully down a street, surrounded by smiling children.

Enough of being poor

By Marcellin Boguy

In western Africa a new middle class is emerging. Their consumer behaviour is determining the demand for products – home-produced and imported goods, on the internet or at the village market. The people of Ivory Coast in particular are looking to the future with optimism.

From start to finish: a vision of interconnectivity

A contribution by Tanja Reith

At the moment, the agricultural industries of African countries exist in relative isolation. Imagine peasant farmers digitally connected to the value chains of the global food industry. How could this happen? A guidebook.

A man in a white coat examines labeled seed bags on wooden shelves, showcasing a collection of agricultural samples.

Wanted: German investment in African agriculture

Interview with Stefan Liebing

Stefan Liebing is chairman of the Africa Association of German Business. The manager calls for a better structure of African farms. Jan Rübel asked him about small farmers, the opportunities for German start-ups and a new fund.

(c) Donwilson Odhiambo/ZUMA Wire/picture alliance — Kenia / Nairobi, Mai 2020: Young Girls from Kibera Slums use their Corona Virus braided hair style in spreading awares to the society.

Developing countries hit doubly hard by coronavirus

A contribution by Gunter Beger (BMZ)

In most African countries, the infection COVID-19 is likely to trigger a combined health and food crisis. This means: In order to cope with this unprecedented crisis, consistently aligning our policies to the Sustainable Development Goals (SDGs) is more important than ever, our author maintains.

A group of children holding pots eagerly wait in line for food distribution outdoors.

Can this end world hunger?

A report by Stig Tanzmann

Time to dig deeper: We can only benefit from technical progress if we have a solid legal framework for everybody. But so far, none is in sight - in many countries. Instead, international corporations grow ever more powerful.

The communicator

A contribution by Jan Rübel

What do electrical engineering, telecommunications and agriculture have in common? They arouse the passion of Strive Masiyiwa: Thirty years ago, he started an electrical installation company with $75, later riding the telecommunications wave as a pioneer. Today he is committed to transforming African agriculture.

Borderless food security

A contribution by Christine Wieck

Enabling smallholders to trade across regions and borders promotes food security and economic growth. Although everyone is calling for exactly that, implementation is still difficult

Actual Analysis: The locusts came with the crises

A report by Bettina Rudloff and Annette Weber (SWP)

The Corona-Virus exacerbates existing crises through conflict, climate, hunger and locusts in East Africa and the Horn of Africa. What needs to be done in these regions? To face these challenges for many countries, all of these crises need to be captured in their regional context.

Farmers plow a field with oxen under tall palm trees, preparing for cultivation.

Successful Blueprints for African Agriculture

A Contribution by GIZ

At the 8th German-African Agribusiness Forum (GAAF) representatives from business and politics discussed successful investment models to improve living conditions in Africa.

A herd of cattle walks along a rural road under a clear sky, guided by herders.

Our Food Systems are in Urgent Need of Crisis-Proofing: what needs to be done

An Artikel by TMG

Based on a scientific study by TMG Think Tank, the authors highlight various challenges in the fight against the hunger crisis. The findings show that climate change, conflict and covid-19 are increasing food and energy prices.

A large red cargo ship loaded with colorful containers sails under a bright blue sky with scattered clouds.

2022, a year of crisis – What does it mean for African trade and food security?

A Contribution by Ousmane Badiane

The Africa Agriculture Trade Monitor 2022 (AATM) was published by IFPRI and AKADEMIYA2063. The report analyses the short- and long-term trends and drivers of African agricultural trade flows, including regional policies and the role of global markets.

The chart shows the FAO food price index from 2005 to 2022, highlighting crises and a rise during COVID-19.

COVID-19 and Rising Food Prices: What’s Really Happening?

A Contribution by IFPRI

Taking a look at the data (as of February 11th 2022) what the current price hike means for world hunger and what can be done to prevent from another food crisis.

Vendors in a bustling Bangladeshi market display vibrant vegetables in circular baskets on the ground.

Agricultural prices and food security – a complex relationship

A Contribution by Dr. Fatima Olanike Kareem and Dr. Olayinka Idowu Kareem

High agricultural prices affect developed and developing countries alike, but the problem is aggravated for the latter through the lack of or inadequate resilience measures. Dr. Fatima Olanike Kareem, AKADEMIYA2063, and Dr. Olayinka Idowu Kareem, University of Hohenheim, explain what can be done to mitigate the negative effects on food security.

A woman in a white shirt and colorful skirt smiles while sitting outdoors, surrounded by lush greenery, promoting Fairtrade.

Earth’s well, all’s well!

A Contribution by Fairtrade Germany

With the annual topic "Earth’s well, all’s well!", Fairtrade Germany is focusing on the concept of agroecology at all levels - and is thus taking the next step towards achieving greater global sustainability. At the Green Week trade fair, Fairtrade Germany will show how this can be achieved taking the cocoa supply chain as an example.

The Gap the Economy cannot afford

A Study by CARE

In a new study, the international humanitarian agency CARE analyses how the economic and social barriers faced by women significantly reduces the global gross domestic product (GDP). At the current rate, it will take 152 years to close the economic gap between women and men – although closing this gap would be extremely profitable from an economic perspective.

Women are weighing and distributing grain at a rural grain bank in India, showcasing community cooperation.

Working with Informality: Unlocking Community-Led Solutions Towards Zero Hunger

A Contribution by TMG

Amid rising global hunger, urbanization, and shrinking international funding, informal food systems are crucial for food access and livelihoods in low-income African urban areas. The TMG Think Tank’s paper, “Working with Informality for Food Systems Transformation and Resilient Communities,” highlights the importance of recognizing and working with informality to achieve Sustainable Development Goal 2.

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Bitter fruit

By Frank Brunner

The growers

The chocolate manufacturers

The non-government organisations

The Federal Government

The consumers

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