Cocoa

Table of Contents

Cocoa is grown predominantly by a large number of small-holder producers; approximately 90 percent of cocoa producers are small-holder farmers. Traceability systems should facilitate the participation of small producers who may have less administrative, technical, and financial capacity. Cocoa sector experts have also noted that it is important that any traceability initiative benefits farmers and does not detract from farmer and worker livelihoods.¹
Existing traceability efforts in cocoa supply chains often focus on downstream companies’ direct cocoa sourcing.² However, a large percentage of cocoa production occurs outside of direct supply chains and thus largely outside of traceability systems. Efforts to pilot or expand traceability systems should incorporate strategies for indirect sourcing.
Cooperatives can provide an important infrastructure for supply chain traceability and other sustainability programs. They can provide companies with a means to gain visibility into the lower tiers of the supply chain, as well as a means to support implementation of monitoring and remediation programming.³ Supply chain mapping can help to identify whether producers are organized into cooperatives as a first step to designing subsequent traceability systems suited to the structure and capacity of supply chain actors.
Cocoa grown by different producers and producer organizations is typically mixed at multiple levels of the supply chain. This mixing makes it difficult to trace cocoa back to the individual farm level, where most of the supply chain risks originate, so product tracking methods that permit mixing of goods such as bulk commodity or mass balance may be more feasible.⁴
The cocoa trading and grinding industries are highly concentrated. Roughly half of global trade of cocoa is controlled by three companies. Actions by these companies, such as cascading down certain human rights or traceability requirements, could have a substantial impact on the cocoa supply chain.⁵ Given the influence that downstream actors have over their supply chains, the mid-tier gatekeeper method at the cooperative or other intermediary level may be suitable as companies could develop rigorous due diligence systems with substantial oversight and accountability.

Forced Labor or Trafficking in Persons cited by U.S. Government

Child Labor cited by U.S. Government

Risk of Forced Labor or Trafficking in Persons cited by other source

Risk of Child Labor cited by other source

Documented presence of migrant workers

Documented presence or significant likelihood of third-party labor recruiters

Documented presence of other vulnerable workers

The U.S. Department of Labor has cited the presence of forced labor in the production of cocoa in Nigeria and Côte d’Ivoire.⁶ The U.S. Department of State has noted reports of human trafficking for forced labor on cocoa plantations in Côte d’Ivoire, internally as well as of workers from Burkina Faso and Mali.⁷
The U.S. Department of State has noted reports of child trafficking for potential exploitation on cocoa plantations in Cameroon, Burkina Faso, Côte d’Ivoire, Ghana, Guinea, Mali, and Togo.⁸ The U.S. Department of Labor has identified child labor in cocoa production in Brazil, Cameroon, Côte d’Ivoire, Ghana, Guinea, Nigeria, and Sierra Leone.⁹
Other sources have reported forced labor and forced child labor in the production of cocoa in Ghana and Côte d’Ivoire, which are also the most researched and top exporting countries.¹⁰ One source noted that forced labor risk in the Côte d’Ivoire cocoa sector appears to be limited primarily to recently arrived migrant workers, who are in their first year of employment, including both adults and children. These may be internal migrant workers as well as foreign migrants stemming primarily from Burkina Faso and Mali.¹¹
Other sources have documented the presence of child labor in Brazil,¹² Cameroon and Guinea,¹³ Nigeria,¹⁴ Côte d’Ivoire and Ghana. Children may be subject to the Worst Forms of Child Labor (WFCL) as they may perform extremely hazardous work.¹⁵
Migrant workers comprise a significant portion of the workforce in Ghana and Côte d’Ivoire. Sources have noted that there is a high prevalence of migrant workers from Mali and Burkino Faso in Côte d’Ivoire, and that these migrant workers are most often young boys.¹⁶ Other reports have found that while there is a small presence of transnational migrant workers in cocoa production in Ghana, internal migration is significant.¹⁷
Third-party labor recruiters in Côte d’Ivoire’s cocoa sector may engage in deceptive recruitment practices, and through these intermediaries, workers, especially migrant workers, may incur debt related to recruitment and transportation.¹⁸

Large numbers of dispersed, unorganized, or informal small producers or other worksites

Multiple points of aggregation, co-mingling, and/or transformation across supply chain

Complex, opaque supply chains and/or lack of vertical integration

High degree of flexibility in procurement practices of downstream entities

Smallholders make up around 90 percent of all cocoa farmers.¹⁹
Almost half of all cocoa entering the supply chain comes from informal sources that are not part of a company’s direct supply chain, so the corresponding farms and farmers and their conditions remain invisible.²⁰ Cocoa from different farmers is often mixed together at multiple levels of the production cycle.²¹ It seems to be common practice for cocoa cooperatives to meet quality standards of buyers by mixing volumes of certified and conventional cocoa, which remains undisclosed and is not documented.²²
In Côte d’Ivoire, it is estimated that between 30 percent and 50 percent of all cocoa producers participate in a cooperative, even though only approximately 20 percent of cocoa is sold through cooperatives.²³ While big exporters prefer sourcing from cooperatives, as they are relatively well structured and organized, smaller exporters follow less formal and structured channels by working with intermediaries.²⁴

Scale or nature of risk varies significantly based on geographic area of production

Scale or nature of risk is strongly associated with certain types of suppliers/entities

Scale or nature of risk is present across multiple tiers or nodes of supply chain (including in associated downstream or upstream goods)

Incidences of hazardous child labor appear to be most concentrated in newly established cocoa growing areas and/or remote geographic regions.²⁵
Cocoa farms which are part of a cooperative structure may, depending on the efficacy and capability of the cooperative, be less prone to forced labor or child labor risks.²⁶

Cocoa supply chains may take on a variety of forms, depending on their overall level of integration and whether they are part of a cooperative structure. However, a simplified cocoa supply chain can be described as follows; cocoa pods are cultivated and harvested on farms/ plantations. The pods may then be sent to fermentaries to be split, fermented, and dried; however, small-holder farmers most commonly perform fermentation and drying steps themselves. Intermediaries may buy beans directly from farmers and then sell them to wholesalers and exporters, while in other cases, intermediaries will buy the beans from farmers and then transport them to a cooperative.²⁷ Sometimes, farmers sell to cooperatives directly.²⁸ Cooperatives and/or intermediaries may then process the cocoa beans locally or sell them for further processing and exporting abroad. Exporters may grind the purchased cocoa beans into cocoa liquor locally, but the majority will ship the cocoa beans to processing facilities in North America or Europe where they are ground and processed into cocoa butter, cocoa powder, or other forms. The cocoa trading and grinding industries are highly concentrated, with only three corporations controlling nearly half of the global cocoa trade.²⁹

Manufacturers purchase cocoa powder, cocoa butter, and other forms of processed cocoa beans from traders/grinders in order to make chocolate and other cocoa products. In cocoa manufacturing as well, a small number of companies who create internationally popular candies and chocolates represent a large portion of the market share.³⁰

Farm/Plantation

Cooperative Collectors

Fermentation and Drying Centers

Refineries and Grinders

Manufacturing

Retail

Food and Beverage

Cocoa is used in the production of chocolate and chocolate confectionary products.

Cosmetics and Personal Care

Cocoa is used in the production of cosmetics and pharmaceuticals that are based on the cocoa derivative cocoa butter.

Côte d’Ivoire³²
Ghana
Indonesia
Nigeria
Ecuador
Cameroon
Brazil
Sierra Leone
Peru
Dominican Republic

Rainforest Alliance (Identity Preservation)Rainforest Alliance (Mass Balance)Rainforest Alliance (Segregation/Bulk Commodity)Fairtrade International (Mass Balance)Fairtrade International (Identity Preservation + Segregated/Bulk Commodity)

1
P. Stoop, N. Ramanan, H. Geens, A Lambrecht, S. Dekeister. “Technical Brief on Cocoa Traceability in West and Central Africa.” C Lever, 2021. www.idhsustainabletrade.com/uploaded/2021/04/Cocoa-Traceability-Study_Highres.pdf
2
P. Stoop, N. Ramanan, H. Geens, A Lambrecht, S. Dekeister. “Technical Brief on Cocoa Traceability in West and Central Africa.” C Lever, 2021. www.idhsustainabletrade.com/uploaded/2021/04/Cocoa-Traceability-Study_Highres.pdf.
3
Assessment of Forced Labor Risk in the Cocoa Sector of Côte D’Ivoire. Verité, February 2019, pp. 50-51, www.verite.org/wp-content/uploads/2019/02/Verite-Report-Forced-Labor-in-Cocoa-in-CDI.pdf.
4
An Investor Brief on Impacts that Drive Business Risks. Cocoa. Engage the Chain, October 2020, p. 4, engagethechain.org/sites/default/files/commodity/Cocoa%20Brief%20Engage%20the%20Chain%20Oct2020_0.pdf.
5
An Investor Brief on Impacts that Drive Business Risks. Cocoa. Engage the Chain, October 2020, p. 6, engagethechain.org/sites/default/files/commodity/Cocoa%20Brief%20Engage%20the%20Chain%20Oct2020_0.pdf.
6
List of Goods Produced by Child Labor or Forced Labor. U.S. Department of Labor, 28 September 2022, www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods?tid=All&field_exp_good_target_id=5771&field_exp_exploitation_type_target_id_1=All&items_per_page=10.
7
2021 Trafficking in Persons Report. U.S. Department of State, 2021, www.state.gov/wp-content/uploads/2021/09/TIPR-GPA-upload-07222021.pdf.
8
2021 Trafficking in Persons Report. U.S. Department of State, 2021, www.state.gov/wp-content/uploads/2021/09/TIPR-GPA-upload-07222021.pdf.
9
List of Goods Produced by Child Labor or Forced Labor. U.S. Department of Labor, 28 September 2022, www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods?tid=All&field_exp_good_target_id=5771&field_exp_exploitation_type_target_id_1=All&items_per_page=10.
10
Bitter sweets: prevalence of forced labour and child labour in the cocoa sectors of Côte d’Ivoire and Ghana. Tulane University & Walk Free Foundation, 2018, respect.international/wp-content/uploads/2020/03/Cocoa-Report_181016_V15-FNL_digital.pdf.
11
Assessment of Forced Labor Risk in the Cocoa Sector of Côte D’Ivoire. Verité, February 2019, p. 6, www.verite.org/wp-content/uploads/2019/02/Verite-Report-Forced-Labor-in-Cocoa-in-CDI.pdf.
12
Brazil: Survey by Intl. Labor Org. & Labor Prosecution Office reveals 8,000 children and teenagers under child labour in the cocoa supply chain. Business and Human Rights Resource Centre, 5 December 2018, www.business-humanrights.org/en/latest-news/brazil-survey-by-intl-labour-org-labour-prosecution-office-reveals-8000-children-and-teenagers-under-child-labour-in-the-cocoa-supply-chain/.
13
Rooting out child labour from cocoa farms. Paper no. 3. Sharing Experiences. International Labor Organization, 2007, www.ilo.org/ipec/Informationresources/WCMS_IPEC_PUB_6446/lang–en/index.htm.
14
Williams, Oringa, et al. Perception of Nigerian Cocoa Farmers on Child Labour: Implications for Hazardous Child Labour. Asian Journal of Agricultural Extension, Economics & Sociology 10(3), 2016.
15
Final Report. 2013/14 Survey Research on Child labor in West African Cocoa Growing Areas. Tulane University, 30 July 2015, www.dol.gov/sites/dolgov/files/ILAB/research_file_attachment/Tulane%20University%20-%20Survey%20Research%20Cocoa%20Sector%20-%2030%20July%202015.pdf.
16
Robson, Paul. Ending Child Trafficking in West Africa. Lessons from the Ivorian cocoa sector. Anti-Slavery International, December 2010, p. 12, resource-centre-uploads.s3.amazonaws.com/uploads/4086.pdf.
17
Final Report. 2013/14 Survey Research on Child labor in West African Cocoa Growing Areas. Tulane University, 30 July 2015, www.dol.gov/sites/dolgov/files/ILAB/research_file_attachment/Tulane%20University%20-%20Survey%20Research%20Cocoa%20Sector%20-%2030%20July%202015.pdf.
18
Assessment of Forced Labor Risk in the Cocoa Sector of Côte D’Ivoire. Verité, February 2019, p. 47, www.verite.org/wp-content/uploads/2019/02/Verite-Report-Forced-Labor-in-Cocoa-in-CDI.pdf
19
An Investor Brief on Impacts that Drive Business Risks. Cocoa. Engage the Chain, October 2020, p. 5, engagethechain.org/sites/default/files/commodity/Cocoa%20Brief%20Engage%20the%20Chain%20Oct2020_0.pdf.
20
Stoop, P., et al. Technical Brief on Cocoa Traceability in West and Central Africa. C-Lever.org, 2021, p. 33, www.idhsustainabletrade.com/uploaded/2021/04/Cocoa-Traceability-Study-20.7L.pdf.
21
An Investor Brief on Impacts that Drive Business Risks. Cocoa. Engage the Chain, October 2020, p. 4, engagethechain.org/sites/default/files/commodity/Cocoa%20Brief%20Engage%20the%20Chain%20Oct2020_0.pdf.
22
Stoop, P., et al. Technical Brief on Cocoa Traceability in West and Central Africa. C-Lever.org, 2021, p. 32, www.idhsustainabletrade.com/uploaded/2021/04/Cocoa-Traceability-Study-20.7L.pdf.
23
Assessment of Forced Labor Risk in the Cocoa Sector of Côte D’Ivoire. Verité, February 2019, p. 50, www.verite.org/wp-content/uploads/2019/02/Verite-Report-Forced-Labor-in-Cocoa-in-CDI.pdf.
24
Financing responsibly the cocoa supply chain in Côte d’Ivoire: the “leverage” role of the financial sector in eliminating child labor. International Labour Organization, July 2021, p. 3, www.ilo.org/wcmsp5/groups/public/—africa/—ro-abidjan/documents/vacancynotice/wcms_811440.pdf.
25
Commodity Atlas. Cocoa. Verité, www.verite.org/project/cocoa-3/.
26
Assessment of Forced Labor Risk in the Cocoa Sector of Côte D’Ivoire. Verité, February 2019, pp. 50-51, www.verite.org/wp-content/uploads/2019/02/Verite-Report-Forced-Labor-in-Cocoa-in-CDI.pdf.
27
An Investor Brief on Impacts that Drive Business Risks. Cocoa. Engage the Chain, October 2020, p. 4, engagethechain.org/sites/default/files/commodity/Cocoa%20Brief%20Engage%20the%20Chain%20Oct2020_0.pdf.
28
Stoop, P., et al. Technical Brief on Cocoa Traceability in West and Central Africa. C-Lever.org, 2021, p. 13, www.idhsustainabletrade.com/uploaded/2021/04/Cocoa-Traceability-Study-20.7L.pdf.
29
An Investor Brief on Impacts that Drive Business Risks. Cocoa. Engage the Chain, October 2020, p. 5, engagethechain.org/sites/default/files/commodity/Cocoa%20Brief%20Engage%20the%20Chain%20Oct2020_0.pdf.
30
An Investor Brief on Impacts that Drive Business Risks. Cocoa. Engage the Chain, October 2020, p. 6, engagethechain.org/sites/default/files/commodity/Cocoa%20Brief%20Engage%20the%20Chain%20Oct2020_0.pdf.
31
List of exporters for the selected product in 2021. Product: 180100 Cocoa beans, whole or broken, raw or roasted. ITC Trade Map, www.trademap.org/Country_SelProduct.aspx?nvpm=1%7c%7c%7c%7c%7c180100%7c%7c%7c6%7c1%7c1%7c2%7c1%7c1%7c2%7c1%7c1%7c1.
32
Crops and livestock products. Food and Agriculture Organization of the United Nations, www.fao.org/faostat/en/#data/QCL.

Funding is provided by the United States Department of Labor under cooperative agreement number IL‐35805. 100 percent of the total costs of the project or program is financed with federal funds, for a total of USD 4,000,000. This material does not necessarily reflect the views or policies of the United States Department of Labor, nor does mention of trade names, commercial products, or organizations imply endorsement by the United States Government

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Supply Chain Characteristics that Impact Traceability

Traceability Takeaways

Nature of Labor Rights Risk/Vulnerable Workers

Features of Production and Supply Chain

Distribution of Labor Risk in Various Production Areas

Linked Upstream and Downstream Risks

Risk in Nodes in Cocoa Production

Associated Downstream Goods and Consumer Sectors

Top Global Countries

Examples & Resources: Traceability Efforts Associated With Cocoa

Footnotes