- The cost of maintaining cocoa trees increases over time and farmers turn to new forests, causing cocoa resources to decrease.
- The cocoa bean shortage has led to the near closure of processing plants in Ivory Coast and Ghana, two countries responsible for 60% of global production.
- Cocoa researcher Michael Odijie explained the problems in the industry and talked about the need for sustainable solutions and cocoa alternatives.
The cocoa bean shortage has led to the near closure of processing plants in Ivory Coast and Ghana, two countries responsible for 60% of global production. There are significant concerns about chocolate prices and the impact on farmers’ livelihoods, as chocolate producers rely on West Africa for cocoa. Cocoa researcher Michael Odijie explains the causes of the famine to The Conversation he explained.
There are environmental, economic and humanitarian reasons for the decline in cocoa production in West Africa. One environmental factor is the impact of the El Niño weather phenomenon, which causes drier weather in West Africa. This situation led to problems such as viruses on farms. As a result, Ghana has lost harvest from approximately 500,000 hectares in recent years.
The economic cycle of cocoa production refers to the patterns of expansion and contraction inherent in cocoa farming. For example, as cocoa trees age, they become susceptible to diseases and require high maintenance costs. Historically, farmers have tended to abandon old farms and start their businesses from scratch in new forests. While finding new forests is becoming increasingly difficult, a fair solution for sustainable cocoa production cannot be provided.
The human factor includes challenges such as illegal mining, which has taken over many farms in Ghana. Sometimes farmers lease their land to illegal miners in exchange for payment. These mining activities deteriorate the quality of the land, making it unsuitable for cocoa cultivation.
The global market for chocolate and chocolate products is on the rise. It is predicted to grow faster than 4% annually over the next few years. This growing demand for cocoa underscores the urgency of addressing intertwined issues regarding the sustainability of the sector.
Have West African governments intervened to help cocoa farmers and how has the economy of cocoa-producing countries been affected?
In February 2024, the Ghana Cocoa Board (Cocobod), the regulator of the country’s cocoa sector, secured a US$200 million World Bank loan to rehabilitate plantations affected by the viruses. The board will take over diseased farms, remove and replace affected cocoa trees, and nurture the new plantings to the fruiting stage before returning them to farmers.
Cocobod’s practice of providing loans to help farmers in Ghana has been a long-standing one. A $600 million loan received from the African Development Bank in 2018 was used to rejuvenate aging cocoa plantations affected by diseases. Recently, Cocobod benefited farmers by increasing the producer price due to global price increase. Additionally, a task force was created to protect cocoa farms from mining impacts and combat cocoa smuggling to neighboring countries.
In response, Ivory Coast has taken limited measures, focusing on curbing cocoa smuggling caused by shortages in neighboring countries that have driven up prices. Although multinational companies benefit from sustainability programs, the lack of transparency of some companies hinders academic analysis.
Although the increase in cocoa prices initially seemed beneficial to farmers, reduced production and economic difficulties such as high inflation and devaluation, especially in Ghana, mean that farmers cannot earn more. This production decline also reduces local processing. Major facilities in Ivory Coast and Ghana may cease operations, leading to an increase in global chocolate prices and affecting local production units.
Will chocolate manufacturers turn to cocoa alternatives?
This is inevitable because it is unsustainable to continue growing cocoa under current conditions. In fact, this process has already begun with the rise of cocoa butter substitutes, cocoa extracts and artificial flavors. The German company Planet A Foods is a leader in this field. Cocoa-free chocolate is produced to transform ingredients such as oats and sunflower seeds into substitutes for cocoa mass and butter.
Demand for cocoa has resulted in mass deforestation and significant carbon emissions, which are likely to worsen due to climate change. Moreover, the pressure for planting led to various forms of labor violations. Exploring cocoa alternatives is part of the solution.
Compiled by: Esin Özcan
