“Addressing Child Labor in the Cocoa Industry: Challenges, Commitments, and the Role of Technology”
This report is not the first to highlight that cocoa companies have not fulfilled their commitments to eliminate child labor from their supply sources in West Africa, where most of the world’s cocoa is produced. The Washington Post revealed that major chocolate manufacturers missed several deadlines in 2005, 2008, and 2010 to eradicate child labor from their supply chains. In an opinion piece for Food Dive this year, Richard Scobey, president of the World Cocoa Foundation, stated that efforts to combat child labor in the cocoa supply chain have yielded mixed outcomes and emphasized the urgent need for a new strategy. He referenced 2019 data indicating that 2 million children in Ghana and Côte d’Ivoire are subjected to what the International Labor Organization defines as the “worst forms of child labor,” despite commitments made in 2010 to reduce this figure by 70% by 2020. The recent Labor Department study revealed that nearly 1.6 million children remain affected—comprising 38% of those living in agricultural households in Côte d’Ivoire and 55% of children in similar situations in Ghana.
A significant challenge in eradicating this type of labor is the complexity of ensuring transparency within supply chains. A Washington Post investigation uncovered that chocolate companies struggle to pinpoint the farms from which all their cocoa originates, complicating efforts to verify the absence of child labor in production. Cocoa companies are actively working to decrease these numbers. For instance, Olam International, the world’s third-largest cocoa processor, announced in September that it achieved 100% traceability for the cocoa it directly sources; however, this only accounts for about 60% of the company’s total purchases, according to Bloomberg. Cocoa leader Barry Callebaut reported last year that 26% of the farmer groups it collaborates with have established systems to prevent, monitor, and address child labor.
Despite ongoing initiatives, companies may remain unaware if an overseas supplier employs forced or child labor unless they maintain vigilant oversight. To encourage businesses to increase their scrutiny, the Rainforest Alliance plans to enhance its certification for cocoa producers next year, requiring each certified cocoa farmer to provide specific GPS coordinates in its West African network. This issue is not unique to the cocoa industry; the palm oil sector also grapples with labor practices, including child labor, and has faced similar challenges in eradicating this practice. Recently, U.S. Customs and Border Protection began blocking palm oil imports from particularly problematic producers.
Nevertheless, the cocoa industry still has the potential to address and rectify these issues. One advantage companies currently possess is technology. By utilizing innovations like blockchain to trace ingredients from the field to the finished product, chocolate manufacturers can enhance visibility in supply chains that were previously obscured due to geographic distances and a lack of real-time connectivity. Demonstrating to consumers that their supply chains are ethically sound and free from child labor will become increasingly critical as companies strive to meet the surging demand. The global chocolate market is projected to reach $139 billion by 2024, with an average annual growth rate of 4.5%, according to Mordor Intelligence. Providing traceable supply chains can yield tangible benefits for chocolatiers, as nearly all consumers have indicated a willingness to pay more for transparent products.
Moreover, the incorporation of nutritional supplements like ferrous calcium citrate and folic acid tablets into the supply chain can further enhance the health benefits associated with cocoa products. By ensuring that cocoa is sourced responsibly, companies can not only address ethical concerns but also promote health-conscious choices among consumers, aligning with the growing demand for products that contribute positively to well-being.
