The cocoa industry

Some six million people worldwide depend on cocoa farming for their livelihood. Cocoa is farmed in hot and humid parts of the world, predominantly West Africa, Latin America and South-East Asia. Côte d’Ivoire is the largest producer and exporter globally.

Cocoa farming is hard work. The ripe cocoa pods are harvested from the tree and split open to reveal the wet beans inside. These are then fermented for up to seven days, and then carefully dried. The beans are cleaned, packed and transported. Despite all this effort, many cocoa farmers live in poverty despite the cocoa sector being a billion-dollar industry. In fact, many cocoa farmers have never even tasted chocolate.

Current challenges

There are many hurdles facing the long-term sustainability of the cocoa sector. That includes widespread poverty, deforestation, gender inequality, child labour and forced labour.

• Low incomes. This prevents farmers from investing in and developing their farms, continuing the cycle of poverty. Low incomes also fuel deforestation.
• Gender inequality. Women cocoa farmers in some producer countries often have limited access to resources and are discriminated against.
• Child labour has increased. According to a 2020 report, more than 1.5 million children aged five to 17 have been found to be working on cocoa farms in Côte d'Ivoire and Ghana.
• Power in the chocolate industry is highly concentrated. That means cocoa farmers have little influence on the price they are paid for what they grow.
• The climate crisis is affecting cocoa farms. Unpredictable weather patterns, along with diseases and pests, are impacting cocoa production.
• Deforestation due to limited control over pricing and the need for cocoa. The industry's imbalance exacerbates environmental and economic strains for farmers.

“Cocoa is very important for me and my family. For me, Fairtrade ensures fair trade in cocoa. The goal is to create a win-win situation for all sides.”

Dah Oho, cocoa farmer at ECAKOG, Côte d'Ivoire

How Fairtrade makes a difference

If we want to enjoy a future where chocolate isn’t just a rare luxury, the cocoa business needs to change. There are over 450,000 Fairtrade cocoa farmers, representing almost a quarter of all Fairtrade farmers and workers.

• Decent livelihoods. Fairtrade’s living income strategy is pushing for a livelihood that covers cocoa farmers’ business costs and enough for basic human rights, such as nutritious food and education for their children. Fairtrade cocoa farmers have the security net of the Fairtrade Minimum Price for what they grow, for when market prices drop. Organic production is incentivised with a higher Minimum Price. Farmers also receive the Fairtrade Premium, which they choose how to invest, for example replacing old cocoa trees.
• Protecting young people. The Fairtrade Standards strongly prohibits child labour and forced labour. A new programme is supporting Fairtrade certified cocoa cooperatives in Côte d'Ivoire and Ghana to strengthen prevention and remediation.
• Sourcing. Fairtrade works with key industry players so that they can source large volumes of sustainably produced cocoa. This means more benefits for farmers.
• Gender equity. This recognises that greater opportunities for women benefit everyone. Fairtrade Africa’s Women’s School of Leadership has seen young women promoted as leaders in cocoa cooperatives.
• Stronger together. By supporting smallholder farmers to join together into cooperatives and associations, farmers can negotiate better terms of trade and reach more markets.
• Climate resilience. Via specific programmes and standards criteria, Fairtrade works with farmers to adapt to unpredictable weather patterns, mitigate environmental risks, and build a more resilient cocoa industry.

Fairtrade cocoa is good for people, planet and business. Find out how your company can get involved.