1 / 10

Beyond Fairtrade: Chocolate companies & socially sustainable cocoa sourcing

Beyond Fairtrade: Chocolate companies & socially sustainable cocoa sourcing. Stephanie Barrientos University of Manchester s.barrientos@manchester.ac.uk. Research Questions. Why are companies mainstreaming socio-economic sustainability and fair trade in the value chains?

chiko
Download Presentation

Beyond Fairtrade: Chocolate companies & socially sustainable cocoa sourcing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Beyond Fairtrade: Chocolate companies & socially sustainable cocoa sourcing Stephanie Barrientos University of Manchester s.barrientos@manchester.ac.uk

  2. Research Questions • Why are companies mainstreaming socio-economic sustainability and fair trade in the value chains? • Changing profile of cocoa-chocolate value chain • Socio-economic challenges in cocoa farming • How are chocolate companies addressing challenges of socio-economic sustainability in cocoa? • Concluding Remarks

  3. World Cocoa Producing Countries Cocoa is the strategicraw material for Chocolate manufacturing grown 8° north and south of equator. Cocoa: IDPM, University of Macnhester

  4. Changing Global Cocoa-chocolateValue Chain • Dismantling Cocoa Marketing Boards - SAPS 1980s • Concentration of Chocolate confectionary industry • Production – Fragmentation • 70% from W. Africa – 90% smallholder farmers • Decline Quality (except Ghana – COCOBOD) • Price volatility and secular decline (-13% 1993–2005) • Market segmentation: niche, quality, volume • Future growth in Chocolate Demand in South • Average rate of growth 2 -3%, BRICS much higher (8-10%) • Estimated 2020 cocoa shortage of 0.5 m tons + (Amarjaro)

  5. Challenges to socio-economic sustainability (Ghana) • Profile: ageing smallholder farmers (51 years) • Low yields (40% of potential) • Poverty (Mean per capita daily income $0.42 cocoa alone, $0.63 from all sources) • Child labour • Poor social infrastructure (water, health, schools, transport) • Youth aspiration - to leave cocoa • Risk to long term socio-economic sustainability of cocoa sourcing

  6. Promoting socio-economic Sustainability in Cocoa • Responses on child labour • Harkin-Engel Protocol • Industry/IUF/NGO initiatives (eg. ICI) • Government plans (eg. Ministry of Manpower Ghana) • Growth of Certification Schemes • Fairtrade, Rainforest Alliance, Utz • Company-civil society Initiatives: • Farmers’ and cooperative group support - companies (including Kraft & Cargill) + NGO Care (since 2006) • Cocoa Partnership (Cadbury/Kraft) • Founded 2007 - UK£45m • Alliance with civil society organisations (north and south) • Nestlé Cocoa Plan (2009) • Gates Foundation (2009) with World Cocoa Foundation, GTZ, Mars, Hershey, Kraft etc. – cocoa and cashew programme Africa • ICCO est. 60 producer initiatives

  7. Kuapa Kokoo • Cooperative of

  8. Concluding Remarks • KEY FINDINGS • Value chain (dis)articulation: companies v. producers • Sustainable cocoa supply no longer assured • Development shift at producer level • KEY RECOMMENDATIONS • Rebalance value chain – companies, certifiers, trade • Building capabilities at grass roots - stakeholder initiatives (inc. government, donors, NGOs, TUs) • Vision - farmers and workers organised and empowered as productive value chain actors

  9. Capturing the Gains www.capturingthegains.org

More Related