Issues in the Cocoa Industry
12 Questions
1 Views
3.7 Stars

Issues in the Cocoa Industry

Explore the challenges faced by cocoa farmers in West African countries like Ivory Coast and Ghana, including poverty, child labor, and low income. Learn about the dominance of major cocoa trading companies and the need for ethical cocoa sourcing in the industry.

Created by
@FinerRomanticism

Questions and Answers

What percentage of cocoa farmers in West African countries like Ivory Coast and Ghana do not earn a living income?

73 to 90 percent

Which three powerful cocoa trading companies dominate the chocolate industry?

Cargill, Barry Callebaut, and OFI

What percentage of the value of a chocolate bar goes back to the farmers?

Six percent

What was the proposed solution by US lawmakers in the 2000s to address child labor in cocoa farming?

<p>Mandating labels to indicate child slave labor</p> Signup and view all the answers

Which major chocolate companies receive their cocoa supply from companies like Cargill, Barry Callebaut, and OFI?

<p>Mars, Nestlé, and Hershey</p> Signup and view all the answers

Despite commitments by companies like Mondelez, what issue has the chocolate industry repeatedly failed to address within set deadlines?

<p>Child labor</p> Signup and view all the answers

What rendered certifications unreliable in detecting child labor among cocoa farmers?

<p>Advance notice of audits</p> Signup and view all the answers

Despite having programs to monitor child labor, what have investigations found on farms listed on chocolate companies' websites?

<p>Child labor</p> Signup and view all the answers

How much did companies spend addressing child labor over 18 years in comparison to their annual sales?

<p>Over $150 million</p> Signup and view all the answers

Which two countries have a significant number of children engaged in dangerous tasks in cocoa production according to the US Department of Labor?

<p>Ghana and Ivory Coast</p> Signup and view all the answers

What contributes to child labor in the cocoa industry, according to advocates?

<p>Poverty perpetuated by chocolate companies</p> Signup and view all the answers

Which company serves as a model for ethical cocoa sourcing and fair wages by paying farmers double the going rate?

<p>Tony's Chocolonely</p> Signup and view all the answers

Study Notes

  • Chocolate is highly popular globally, with a 140-billion-dollar-a-year industry, and is widely loved for its taste and effects on mood.
  • The cocoa industry, however, faces significant issues related to farmers who grow cocoa, particularly in West African countries like Ivory Coast and Ghana.
  • Many cocoa farmers in these countries live in poverty, with 73 to 90 percent not earning a living income and 30 to 58 percent below the World Bank's extreme poverty line.
  • Cocoa farming involves labor-intensive processes like hand-harvesting cocoa pods and fermenting the beans, with many farmers never having tasted chocolate due to affordability.
  • The chocolate industry is dominated by a few powerful cocoa trading companies like Cargill, Barry Callebaut, and OFI, who then supply major chocolate companies like Mars, Nestlé, and Hershey.
  • Only about six percent of the value of a chocolate bar goes back to the farmers, leading to significant disparities in earnings within the industry.
  • Child labor is a long-standing issue in cocoa farming, with reports of young children being enslaved or trafficked to work on cocoa farms that supply major chocolate companies.- In the 2000s, US lawmakers considered mandating labels for chocolate to indicate child slave labor, but it was reduced to a voluntary agreement called the Harkin-Engel Protocol.
  • The chocolate industry repeatedly missed deadlines to eliminate child labor, despite commitments and promises by companies like Mondelez.
  • Third-party organizations certified some cocoa farmers met standards, but advance notice of audits rendered these certifications unreliable in detecting child labor.
  • Mondelez and other chocolate companies have flashy programs to monitor child labor, but investigations have found child labor on farms listed on their websites.
  • Companies spent over $150 million addressing child labor over 18 years, a small fraction of their annual sales.
  • The US Department of Labor estimates a significant number of children work in cocoa production in Ghana and Ivory Coast, engaged in dangerous tasks.
  • Poverty perpetuated by chocolate companies contributes to child labor, with advocates urging companies to pay farmers more.
  • Tony's Chocolonely, a company paying farmers double the going rate, serves as a model for ethical cocoa sourcing and fair wages.
  • Tough legislation is needed to address child labor in the chocolate industry, as relying on voluntary commitments has not been effective.
  • Experts stress the need for action to eliminate child labor in the cocoa industry, highlighting the persistent exploitation despite awareness of the issue for two decades.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

More Quizzes Like This

Use Quizgecko on...
Browser
Browser