Towards a Sustainable Cocoa Chain: Power and possibilities within the cocoa and chocolate sector | Cocoa Bean

Please download to get full document.

View again

of 34
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Information Report
Category:

Documents

Published:

Views: 4 | Pages: 34

Extension: PDF | Download: 0

Share
Related documents
Description
This report contributes in various ways to the debate on a sustainable cocoa economy. A sustainable cocoa economy is where each person investing time or money into the supply chain would be able to earn a decent income for themselves and their family, work in good conditions, and in a manner which did not harm the environment. It provides an overview of the various stakeholders in the cocoa and the wider chocolate supply chain. It identifies the concentration and purchasing power of companies as well as the trends in the supply chain. Finally, it makes a series of recommendations to the various stakeholders in the supply chain.
Transcript
    Towards a Sustainable Cocoa Chain Power and possibilities within the cocoa and chocolate sector This report contributes in various ways to the debate on a sustainable cocoa economy. A sustainable cocoa economy is where each person investing time or money into the supply chain would be able to earn a decent income for themselves and their family, work in good conditions, and in a manner which did not harm the environment. It provides an overview of the various stakeholders in the cocoa and the wider chocolate supply chain. It identifies the concentration and purchasing power of companies as well as the trends in the supply chain. Finally, it makes a series of recommendations to the various stakeholders in the supply chain. OXFAM RESEARCH REPORT      Towards a Sustainable Cocoa Chain  Oxfam International Research Report, January 2009 2 Jan Cappelle - IPIS Commissioned by Oxfam-Wereldwinkels Disclaimer This paper was written by Jan Cappelle (IPIS), as commissioned by Oxfam-Wereldwinkels. The views expressed in the text and its recommendations are those of Oxfam-Wereldwinkels. The author takes responsibility for any errors herein.    Towards a Sustainable Cocoa Chain  Oxfam International Research Report, January 2009 3 Contents 1. Introduction __ 3 2. Cocoa production __ 4 3. The cocoa chain __ 6 3.1. The supply chain in Ghana __6 3.2. The supply chain in Ivory Coast __ 7 3.3. Cocoa bean grinding capacity in Ivory Coast and Ghana __ 8 4. The price of cocoa __ 11 5. The cocoa and chocolate supply chain __ 13 6. The sphere of influence of companies in the cocoa supply chain __ 17 7. Recommendations __ 21 7.1. To the European Commission __ 21 7.1.1. Improve existing instruments __ 21 7.1.2. Strengthen existing multi-stakeholder forums __ 22 7.1.3. Increasing transparency __ 22 7.2. To the companies in the cocoa sector __ 22 7.2.1. Respect legislation and rules __ 22 7.2.2. Take additional measures __ 23 7.3. To the national governments of Ghana and Ivory Coast __ 23 7.4. To the chocolate consumers __ 24 Annex 1 Cocoa production per country __ 25 Notes __ 27 Acknowledgements __ 31      Towards a Sustainable Cocoa Chain  Oxfam International Research Report, January 2009 4 1. Introduction The cocoa tree is an important source of income for millions of farming families in equatorial regions. Cocoa srcinates in the river valleys of the Amazon and the Orinoco in South America. Its discoverers, the Maya people, gave it the name ‘cocoa’ (or ‘God’s food’). Cocoa was introduced to Europe in the fifteenth century. Cocoa imports were heavily taxed, and as a result it was consumed as a drink only by the wealthy. Investment from Great Britain and The Netherlands, combined with the launch of the chocolate bar in 1842 by Cadbury, resulted in a greater demand for chocolate. This led to the gradual expansion of cocoa production, spreading to Africa in 1870. Today West Africa is the largest supplier of cocoa, accounting for 70 per cent of global cultivation. A significant proportion of its cocoa production, however, takes place in particularly bad conditions. Child trafficking, serious forms of child labour 1  and the financing of conflicts 2  are the problems most frequently discussed within the cocoa sector. Many other problems are barely mentioned, but are equally serious, such as the labour intensive nature of production and harvest, poor health and safety measures 3  , the low incomes of the cocoa farmers, lack of access to credit, uncertain property rights, the forest cultivation methods and the use of pesticides and fertilisers (and the effects of these on public health and the environment). Cocoa is traded through a local and international supply chain, and is marketed as a variety of products at different stages in the chain. In addition to the beans themselves, semi-processed products (such as cocoa powder, cocoa butter, cocoa oil and cocoa fats or chocolate tablets) and processed products (such as chocolate bars and other confectionery) are traded. Although Ivory Coast and Ghana, the two largest cocoa-producing countries, produce 56 per cent of all traded cocoa, the consumption of it within these countries amounts to barely 0.6 per cent of the world market. Many cocoa producers have never tasted chocolate. In the meantime, consumer markets in Europe, the United States and Asia are growing. By 2012 it is expected that global chocolate consumption will have increased by 15 per cent compared to 2006. 4  The consumer leads the market, which is currently orientated mainly towards the lower price end. The main players in the cocoa supply chain, however, are coming under increasing public pressure to make the cocoa economy more sustainable. In theory this is possible, because currently a handful of companies dominate the international cocoa trade and in some continents that concentration is even stronger. Those companies could therefore incorporate environmental, human rights and social considerations into their  business activities, including their contracts with suppliers, offering sustainable cocoa and chocolate products to the mass market. 5   This report contributes in various ways to the debate on a sustainable cocoa economy. A sustainable cocoa economy is where each person investing time or money into the supply chain would be able to earn a decent income for themselves and their family, work in good conditions, and in a manner which did not harm the environment. It provides an overview of the various stakeholders in the cocoa and the wider chocolate supply chain. It identifies the concentration and purchasing power of companies as well as the trends in the supply chain. Finally, it makes a series of recommendations to the various stakeholders in the supply chain.
Recommended
View more...
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks