Chocolate is BIG money, but many farmers are still living in poverty

What do the third richest family dynasty in the USA, the fifth richest man in Germany, the richest man in Italy, the richest man in Austria, and one of the largest privately owned companies in the USA have in common?

They are all chocolate company owners. 

With all this money in Chocolate, why are many cocoa farmers still not being paid a living income for their work?

When you purchase a standard chocolate bar, only 6% of the price you pay is going back to cocoa farmers. Small hold farmers need to be paid an estimated 4-5 times that to earn a living income.

It’s unknown exactly how many farmers are currently being paid a living income. We’ve seen estimates as high as 25% and as low as 10%. This highlights the overall lack of transparency in the industry.

This is just one element of a broader global issue - that the wealth disparity between high and low-income countries continues to grow at a rapid rate.*

In an industry that includes some of the wealthiest, most powerful companies in the world, cocoa farmers deserve better. They deserve to have the money to send their children to school, access healthcare, build their savings, and set their families up for generational success.

WHAT ARE THE KEY STEPS WE’D LIKE TO SEE COMPANIES TAKING?

  1. Investigate the current income of farmers. Over 60% of the companies surveyed for the 4th Edition of the Chocolate Scorecard knew the average income of farmers. This is a huge jump from only five companies who had this information in our survey for the prior year. There is still a long way to go, but we’re encouraged by this major step forward as previously we were told that it was not possible to gather that information.

  2. Understand what farmers should be getting paid. Just half of the participating companies knew this information.

  3. Invest in community development and education programs within farming communities that reduce the risk of poverty. Tony’s Chocolonely and Nestlé are two companies that have already invested in support programs like this.

  4. Measure the impact of these initiatives to make sure they are continuing to improve conditions in the community.

I am but one individual chocolate-lover, what can I do to help?

It’s not all bitter, we’ve found a number of companies that are leading the way, and more and more are joining the ranks with innovative programs. What makes companies really pause and pay attention is data and their bottom line. With that in mind, the best way to create positive change is to get out and eat some chocolate! We can think of worse ways to be an activist.

Click here to explore the top-ranked brands in the living income category.

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Author: Carolyn Kitto, co-written by Athina Greenhalgh.

*Justice For Africa’s Children, Laureates And Leaders For Children, 2023, https://www.laureatesandleaders.org/_files/ugd/811759_fdddfe07e2144d68baf7243dd409a1ae.pdf

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Chocolate should be enjoyed by children, not made by them

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The (Not So) Great Chocolate Traceability Mystery