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Cacao farmers in West Africa typically earn less than US$1 a day, far below the World Bank’s extreme poverty threshold of US$2.15. Female farmers face even steeper challenges. The African Development Bank reports that those who work in the Ivory Coast receive only about 20 per cent of the income despite performing much of the labour. These women encounter patriarchal barriers that restrict their decision-making authority and land ownership rights, crucial factors for selling their crops.

Chocolate companies often deflect responsibility for ensuring fair compensation onto their suppliers, who operate on tight margins and resist absorbing additional costs, according to the international non-profit organisation Oxfam. So, farmers find themselves at the weakest point in the supply chain, with minimal leverage over pricing as buyers exert downward pressure.

This low-income cycle leads to child labour, as desperate families rely on their children’s work to survive. A 2020 study by NORC at the University of Chicago revealed that over 1.5 million children work in Ghana and Ivory Coast engaged in hazardous labour. These minors, aged between five and 17, face risks including exposure to toxic chemicals without proper protection, handling sharp machetes for harvesting and carrying loads too heavy for their developing bodies.

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Reuters has reported that over the past 60 years, Ghana and Ivory Coast have lost approximately 94 per cent and 80 per cent of their forests respectively, with about one-third of this deforestation attributed directly to cacao cultivation.

Cacao trees, particularly those grown in monoculture systems, decline in yield as they mature. This productivity drop has prompted farmers to encroach upon protected forests with nutrient-rich soils illegally. This approach threatens critical wildlife habitats, accelerates soil depletion and releases stored carbon into the atmosphere. Such farming practices also typically rely heavily on pesticides and chemicals, risking contamination of soil and water resources that local communities depend upon.

On the other hand, the chocolate industry’s heavy dependence on West African production creates price volatility when crops are threatened by disease or natural disasters. Chocolate prices have now reached a 50-year high and continue climbing, with cacao recently hitting US$10,000 per tonne—a bitter pill for manufacturers and consumers alike.

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In 2017, the private-public partnership Cocoa & Forests Initiative launched with promising ambitions, bringing together major chocolate companies and the governments of Ghana and Ivory Coast to reduce the rate of deforestation. Yet a fundamental challenge persists in its execution and monitoring: traceability. Many companies struggle to track their supply chains, particularly those purchasing cacao beans through intermediaries rather than directly from producers.

Similar limitations affect certification programmes that guarantee farmers a minimum payment and encourage sustainable practices. Certification costs can burden already-struggling farmers, while monitoring compliance remains particularly challenging in remote growing regions.

The bean-to-bar movement offers one plausible path forward, encouraging makers to oversee every aspect of production from sourcing cacao beans to crafting the final product. Direct trade models, where chocolate producers purchase beans from farmers without intermediaries, could improve farmer compensation while ensuring quality and ethical standards.

Technological innovations also have the potential to transform the industry if they are funded, properly deployed and supported in cacao-growing markets. Advanced agricultural solutions can boost yields sustainably, while sophisticated monitoring satellites and AI systems help prevent deforestation.

In a particularly sweet development last year, food scientists from Zurich’s prestigious Federal Institute of Technology pioneered making chocolate using cacao fruit rather than just the beans. This approach addresses surging cacao bean prices while combating poverty among farmers, who can earn additional income by utilising the whole fruit, especially if processing occurs in countries of origin.

In 2023, the European Union—the region processing the most cacao beans globally—adopted the European Deforestation Regulation, which will come into effect in December 2025, banning the sale of products linked to deforestation. Combined with rising consumer demand for ethical chocolate, the industry’s darker practices may finally emerge from the shadows.

This story was adapted from Tatler Gen.T’s Deep Dive newsletter. Subscribe for weekly updates on the ideas and trends shaping Asia’s future. 

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