“Rising Demand for Sustainability: The Cocoa and Vanilla Industries’ Response to Human Rights and Environmental Challenges”
Attention to human rights and environmental health within the cocoa industry has been intensifying as stakeholders increasingly pressure major companies like Barry Callebaut to implement responsible practices in their supply chains. The Cocoa Barometer report revealed that 2.1 million children are engaged in cocoa farming in Côte d’Ivoire and Ghana, and that the average cocoa farmer earns only about one-third of what constitutes a living income. Additionally, it was found that 90% of West Africa’s original forests have been depleted. Similar challenges are present in the vanilla bean supply chain, including concerns about pricing and product quality. Child labor is also prevalent in the harvesting and processing of vanilla, particularly in Madagascar, which produces 80% of the world’s vanilla supply.
Adding to the urgency, global demand for chocolate has surged, with the cocoa and chocolate market expected to exceed $67 billion by 2025, as reported by Fortune Business Insights in 2020. In response, chocolate manufacturers are striving to enhance the integrity of their supply chains. As public awareness of human rights and environmental issues grows, many industry analysts assert that commitments to transparency and sustainability are now imperative for cocoa-dependent businesses.
Barry Callebaut is advancing its sustainability agenda through its Forever Chocolate initiatives, which focus on eliminating child labor from its supply chain, lifting half a million cocoa farmers out of poverty, achieving carbon and forest positivity, and ensuring 100% sustainable ingredients by 2025. In its 2019-2020 sustainability report, the company indicated that 61% of its non-cocoa ingredients are sustainably sourced and that it has reduced its supply chain’s carbon footprint by 8.1%. Other chocolate companies are also making strides towards sustainability. For instance, in 2018, Hershey announced a $500 million investment in cocoa sustainability initiatives in Ghana and the Ivory Coast, while Olam reported achieving 100% traceability for its sourced cocoa, thanks to new technologies. Nestlé, Lindt, Mondelēz, and Cargill have also made commitments to cocoa sustainability.
Mars, which aims for a fully sustainable supply chain, has partnered with agricultural analytics firm Nature Source Improved Plants to accelerate the development of new cacao varieties that offer higher yields, improved disease resistance, and superior quality. Moreover, it has established a fund in collaboration with Dannon to alleviate poverty among Madagascan vanilla farmers while enhancing the quality of vanilla. As more significant players in the cocoa industry fulfill their commitments to transparency and sustainability, these practices are likely to become the industry norm. Companies that effectively communicate these efforts in their branding and packaging may attract a growing base of consumers who favor brands with robust environmental and social justice initiatives, particularly in the 21st century where consumers are increasingly aware of issues such as “calcium citrate petites” and ethical sourcing.
