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The Economics of Chocolate$
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Mara P. Squicciarini and Johan Swinnen

Print publication date: 2016

Print ISBN-13: 9780198726449

Published to Oxford Scholarship Online: March 2016

DOI: 10.1093/acprof:oso/9780198726449.001.0001

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Beyond Fair Trade

Beyond Fair Trade

Why are Mainstream Chocolate Companies Pursuing Social and Economic Sustainability in Cocoa Sourcing?

Chapter:
(p.213) 12 Beyond Fair Trade
Source:
The Economics of Chocolate
Author(s):

Stephanie Barrientos

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198726449.003.0012

Fair trade has grown rapidly in cocoa under the auspices of different certification bodies, and is likely to continue as demand for certified cocoa grows. Large confectionery chocolate manufacturers are also promoting their own and industry initiatives providing economic and social support for smallholder cocoa farmers. This chapter examines the underlying drivers, including restructuring of the cocoa–chocolate value chain since the 1980s, livelihood challenges now facing smallholders in cocoa, and predicted risks of a future shortage in cocoa supply. Drawing on research in Ghana, it throws light on the fragility of a value chain where cocoa productivity is low, poverty is prevalent amongst cocoa smallholders, cocoa farming is often seen as unrewarding, and many younger farmers are leaving the field to pursue alternative livelihoods. It questions whether current initiatives are sufficient to address deeply embedded economic and social issues in the cocoa sector.

Keywords:   corporate sustainability initiatives, Fairtrade, livelihoods, smallholder cocoa farmers, supply risks

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