The crisis in the cocoa agricultural sector is the result of a series of processes and phenomena that have been occurring for several decades and that now, driven by climate change, have exploded into a crisis that threatens the survival of the chocolate industry worldwide. In this article, we will examine some of the causes that have led to this crisis, seeking to raise awareness among chocolate consumers and help them understand the reasons for the sudden rise in chocolate prices. Therefore, we will begin with some history of cocoa. The cocoa tree originates in the Americas, being one of the most important species for ancient civilizations such as the Aztecs. The first cocoa trees grew approximately 4,000 years ago, naturally in tropical rainforests near the Amazon and Orinoco Rivers in South America. The fruits of this marvelous tree would later reach Europe through Spanish colonizers, who, attempting to replicate a recipe traditionally prepared by the Mayans, mixed cacao seeds with honey, sugar, and milk to create a unique beverage exclusively for royalty and the clergy. However, chocolate consumption soon became popular and spread throughout Europe. In 1657, the first shop selling chocolate bars opened in London; however, this commodity remained a luxury, as its price was excessively high. By the early 19th century, cacao was introduced to Africa. Many sources claim that this introduction was carried out by the Portuguese; however, it is also possible that it was the Spanish who introduced cacao to the African continent, where, as soon as it arrived, it began to spread easily due to European colonial rule over these territories. The introduction of cocoa to the African continent marked a turning point in the production of this commodity, as Africa's social, geographical, and political conditions provided a favorable environment for mass cocoa production. This also paved the way for a gradual decline in cocoa prices and thus increased its consumption. So much so that today the largest cocoa producers for the industrial sector are located in Africa (Ivory Coast and Ghana). Currently, according to Statista figures, three-quarters of global cocoa production comes from Africa, representing more than 3 million tons for the 2022-2023 season. However, mass cocoa production, which allowed this product to maintain a relatively low price, is now at serious risk, as it has had to confront social and climatic phenomena that threaten it. Among them, the most notable are: 1. Working conditions of farmers 2. Deforestation 3. Lack of inputs to improve their production 4. Long waiting times between sowing and harvesting 5. Climate change
All of these factors are deeply interrelated. The first is at the social, political, and economic levels of the African continent. It's important to note that the cocoa sector isn't the only one facing this difficult situation. There is a huge gap between what cocoa farmers in Africa receive and the profits of large chocolate companies worldwide.
Basically, the problem is that many cocoa farmers in Africa earn close to US$2 per day, a situation that forces farm owners to employ child labor, often from their own families and sometimes from undocumented immigrant children purchased solely to work on cocoa farms. A study conducted by a university in the United States revealed that in 2019, there were 790,000 children working on cocoa plantations.
The situation of child labor on cocoa plantations adds to the dangers of work in these places, where workers must use dangerous tools and harmful chemicals without any safety precautions, all with the goal of reducing production costs.
Precarious working conditions are compounded by the deforestation caused by the expansion of cocoa plantations. According to data found on the blog Mon Planeta, 40% of deforestation in protected areas is caused by cocoa, equivalent to 1.5 million hectares of forest lost since 2000.
The reality of the deforestation of native forests in Africa is better understood when we look at the levels of extreme poverty in these countries, where cocoa farmers, seeking to increase their income, resort to cutting down native trees in their areas to plant cocoa and thus increase the amount of beans they can sell.
These two phenomena can and should be addressed through the adoption of policies to protect children and forests. However, the problem runs deeper and will not be solved solely by adopting protection policies. The root of the problem is poverty, and this will only be resolved if the amount received by farmers for cocoa beans increases sufficiently to enable them to live with dignity and employ people under adequate conditions.
On the other hand, there is a problem stemming from the lack of chemical inputs to treat pests in cacao trees. This is because cacao trees have a long production period, and therefore, companies responsible for producing fertilizers, seeds, and pesticides are not interested in focusing on the development of biochemicals that contribute to the care of these plantations, as their rotation is relatively limited.
Thus, the chemicals currently on the market are dangerous and very expensive, making it difficult for farmers to access the necessary inputs to keep their plantations in optimal condition. For this reason, it is increasingly common to find plantations with diseased trees that produce cacao unfit for sale.
This problem with chemical inputs exacerbates the deforestation issue, as when entire crops are attacked by pests or diseases, farmers resort to clearing native forests to start new plantations.
The expansion of crops and the clearing of native forests is a major environmental problem and often fails to solve production issues, as once a cacao tree is planted, it will take three to five years to grow sufficiently to produce ripe fruit. Therefore, it is not a crop that can be implemented in the short term.
Additionally, it is a tree that produces only two harvests per year: a main harvest with a greater quantity of available fruit and an intermediate harvest in which the volume of fruit decreases. Therefore, we also find that cocoa is a seasonal product whose price fluctuations are not being offset by the final chocolate market.
The problem with the seasonality and long ripening times of the cacao tree is that many of the hectares that currently produce the cacao exported for chocolate have trees that are more than 20 years old and are no longer in their optimal state of production, thereby reducing the amount of beans available.
All of this problem is seriously exacerbated by climate change, which has had a negative impact on cocoa crops, especially in Africa. To understand this point, it's important to know that cocoa is a tree native to South America, so the climatic conditions suitable for it are quite specific: it requires a little rainfall and can withstand short periods of drought.
Currently, the climatic conditions on the African continent are very different and do not meet the needs of cocoa farmers. Excessive rainfall has been observed during certain seasons of the year, while excessive drought has also affected cocoa production. Thus, it is possible to understand that, while climate change is not the main cause of the cocoa crisis, it is one of its aggravating factors.
This article aims to clearly and simply explain the deep roots of the current crisis in the cocoa sector, which has led to a significant increase in chocolate prices. It is important to understand that this crisis goes far beyond the effects of climate change, as it is the result of a set of situations and problems that have developed over time. Climate change is just one of the factors exacerbating this situation.
We also seek to raise awareness about this situation, understanding that behind the rising price of chocolate are deep social and economic crises that affect the lives of hundreds of thousands of people in countries like the Ivory Coast and Ghana, where farmers have even resorted to child labor to survive in a sector plagued by mass production. This makes it increasingly difficult to meet the level of productivity demanded by the market, which not only impacts people but also seriously impacts the environment.
