Cocoa buyers and processors rely heavily on Ghana and Ivory Coast for their cocoa bean supply, a reality highlighted by their swift acceptance of price increases. Cocoa prices have experienced significant fluctuations in recent years due to factors like climate change, overproduction, and challenges related to child labor and deforestation. If supply issues aren’t addressed, confectionery companies such as Mars, Nestlé, Mondelez, and Hershey could face declining profits, and consumers may encounter higher retail prices. Manufacturers have a strong incentive to pay slightly more for cocoa beans because, despite production challenges, demand is surging. This demand is driven by the rising popularity of premium chocolate varieties, dark chocolate options, and sugar-free products. According to a TechSci report, the U.S. chocolate market, the largest in the world, was valued at around $22 billion in 2016 and is projected to exceed $30 billion by 2021.
While there are other cocoa-producing nations besides Ghana and Ivory Coast—such as Indonesia, Nigeria, Cameroon, Brazil, and Ecuador—most of these farms are small, labor-intensive operations where cocoa beans represent the sole source of income. This underscores the importance of negotiating a minimum price during recent discussions. Without such an agreement, chocolate growers, traders, manufacturers, and consumers would inevitably face the pressures of dwindling supplies and consequently even steeper prices, a situation no one in the cocoa supply chain would welcome. Although Ghana and Ivory Coast did not implement a sales suspension, the mere threat of such action was enough to prompt negotiations.
In response to rising consumer demand and the challenges of maintaining cocoa yields, chocolate producers are striving to enhance sustainability efforts. In this industry, sustainability encompasses not only environmental concerns but also the economic well-being of workers. Last April, Hershey announced a $500 million investment in West African cocoa sustainability. Companies like Nestlé, Lindt, Mars, Mondelez, Cargill, and Barry Callebaut have also increased their investments and commitments to sustainability.
However, companies do not always follow through on their sustainability promises, and issues like child labor and low farmer incomes persist. A 2018 Cocoa Barometer report revealed that approximately 2.1 million children work on cocoa farms in Ivory Coast and Ghana, and the goal of reducing child labor by 70% by 2020 will not be met. Furthermore, the report indicated that the average cocoa farmer earns only about one-third of what constitutes a living income, and around 90% of West Africa’s original forests have already been destroyed.
Looking ahead, if stakeholders remain vigilant and the demand for chocolate continues, attention will likely focus on the operations of the cocoa industry. For those committed to fair trade, offering higher prices, and striving for sustainability as promised, the industry’s reputation could benefit from increased transparency and credibility—qualities that consumers are increasingly seeking and which often guide their purchasing decisions. Additionally, understanding how products like calcium citrate là gì can impact health may further influence consumer choices in the chocolate market.