Conference on the Economics and Politics of Chocolate

1. Conference on the Economics and Politics of Chocolate The future of cocoa farming: the challenges and opportunities of social rejuvenationDr Amanda BerlanLeuven, 16-19 September 2012

2. The global cocoa market • Cocoa represents a multi-billion £ industry • US chocolate market = approx $18 billion annually • UK chocolate market = approx £4 billion annually • Consumption is rising and major growth in key markets e.g. India and China but production is falling • The global cocoa market is presently characterised by: • more demand for quality cocoa (single origin and ‘terroir’) • a concern for ethical practices in production • undersupply (an estimated 1M/MT annually by 2014) which is driving prices up (and chocolate bar sizes down)

3. Producer and production profiles • Typical profile in Ghana and the DR: male, owns a small plot of land (≤ 10 acres) where cocoa is grown alongside other crops • Incomes are low, debts are common and many farms are not well-maintained, which reduces yields

4. Farm maintenance and yields • Farm maintenance and receptiveness to agricultural extension advice is affected by: • Gender – In the DR women were more interested in receiving agricultural extension advice, though less likely to be literate which can influence outreach methods • Culture – Attitudes towards Black Pod in Ghana and towards pruning and hybrid tree varieties in the DR • Age - Average age of cocoa producers surveyed: • Ghana: 51 years old • India: 50 years old • Dominican Republic: 58 years old • Young people are not interested in becoming cocoa farmers, and this puts the long-term future of cocoa production at risk

5. Children and young people in cocoa: findings from Ghana • Distinction between working on a farm and becoming a cocoa farmer • Factors influencing working on a farm now (‘child labour’) include: poor school infrastructure, family breakdown and malnutrition

6. Children and young people in cocoa: findings from Ghana • Distinction between working on a farm and becoming a cocoa farmer • Factors influencing working on a farm now (‘child labour’) include: poor school infrastructure, family breakdown and malnutrition. • Not wanting to be a cocoa farmer – education and farming seen as mutually exclusive. Farming associated with backwardness since colonial times; young people who have attended school wish to become teachers, nurses, pastors, doctors etc.

7. Children and young people in cocoa: findings from the Dominican Republic • Women not encouraged to enter farming • Low incomes from cocoa (as a result of poor farm maintenance and low yields) are not attractive to younger generations • Seasonality/irregularity of incomes even more problematic. Issue is not only how much farmers earn but also about how frequently they earn it. Young people want to be able to pay regular expenses such as gas, water, electricity, rent, school expenses, mobile phone etc. • The seasonality of cocoa incomes was a key deterrent for the youth

8. Conclusion • Discussions of age in cocoa tend to focus on the work of children in West Africa. However, attention also needs to be paid to the high age profile of farmers; ageing exacerbates the current gap between production and consumption and poses a serious challenge to the long-term global future of cocoa. • There are key economic and socio-cultural factors which impact yields (and therefore incomes) and prevent younger farmers (of both sexes) from taking up cocoa farming. • Intervention is necessary; it is not enough to assume that a cocoa shortage will lead to higher prices and a renewed interest in production. • The abandonment of cocoa has implications for long-term food security and is symptomatic of broader problems in farming and food sustainability worldwide • Context-specific programmes can help address these issues and there is scope to develop locally appropriate agricultural extension programmes