Cocoa sustainability in practice

Oliver Nieburg is a market analyst at Lumina Intelligence and has nine years of experience covering the cocoa market as former editor of trade publication ConfectioneryNews

Oliver Nieburg, Market Analyst, Lumina Intelligence

“Billions have been invested to stimulate sustainability in cocoa in the last 10 years. Alignment among companies and governments has improved, but there is little evidence of a strong contribution to the target indicators of the UN’s 2030 Sustainable Development Goals.”

“Farmer adoption rates for company initiatives are low and average yields per hectare have declined in the two main producing countries. Poverty, child labour, malnutrition and deforestation remain widespread. It comes as farmers feel locked out of decision-making.”

“A cocoa origin claim is a communication on a chocolate package or online product description indicating where the cocoa comes from. It can be a country claim (a single origin claim such as Ecuadorian cocoa), a province claim (e.g. Amazonas) or a farmer cooperative claim. Chocolate products with such claims attract stronger online consumer engagement, better reviews and star ratings than products using a conventional fair-trade claim. Origin claims also attract a higher retail price.”

“A cocoa origin claim can be a more neutral way to promote cocoa sustainability than a fair-trade claim that positions farmers as groups in need rather than equal business partners.”

“Chocolate brands can drive the premium-end of the ethical chocolate market with mission-led brands tied to a deprived cocoa province. Such brands should engage cocoa farmers to be part of decision-making process. Farmers could decide how premiums from higher retail prices are spent on local infrastructure. Imagine a chocolate origins line promoting Ashanti (a region in Ghana) where a portion of profits go to fund teacher housing, which has been identified by farmers as a pressing community need to attract quality teachers to the local area.”

Visit Fi Global Insights to read the full interview with Oliver Nieburg bit ly/Cocoa-sustainability-in-practice