BY: Henry Cofie Fordi
Chocolate is cherished worldwide as a symbol of happiness, celebration, and comfort. However, behind every chocolate bar lies a harsh reality. Millions of cocoa farmers, especially in West Africa, live in poverty despite being the backbone of the industry. This sharp contrast between consumer satisfaction and producer effort reveals significant disparities in the worldwide chocolate supply chain.
The global chocolate industry is worth over $130 billion. Yet, Ghanaian farmers who cultivate the cocoa that fuels this sector earn less than 6% of the final price of a chocolate bar. This glaring inequality exposes deep flaws in global supply chains and raises critical questions about sustainability, ethics, and economic justice.
Ghana, the world’s second-largest cocoa producer, supplies nearly 20% of the global cocoa market. Yet, despite their vital contribution, many Ghanaian cocoa farmers struggle to earn a living wage. Their incomes remain unstable, further strained by price volatility, climate change, and exploitative supply chains. While multinational corporations profit immensely from the chocolate industry, the very farmers who make it possible continue to live in poverty.
🍫 A 2022/23 survey of 600 farming households, conducted jointly by the Swiss Platform for Sustainable Cocoa (SWISSCO) and the Ghana Cocoa Board (COCOBOD), found that the average annual income for cocoa farmers was GHS 24,814 (approximately USD 2,021). Strikingly, 91% of these households earned below the adjusted Living Income Benchmark of GHS 52,970 (USD 4,315), underscoring the significant financial struggles faced by cocoa farmers in Ghana.
🍫 A study by the Imani Center for Policy & Education found that farmers earn an average of $0.60 per person per day, based on a five-person household. This is significantly below the Living Income Community of Practice (LICOP) standard of $1.96 per person per day and the World Bank’s extreme poverty line of $2.15 per person per day.
These figures reveal the economic vulnerability of Ghanaian cocoa farmers, emphasizing the urgent need for systemic reforms to ensure fair compensation and better livelihoods. To create a more equitable and sustainable cocoa industry, immediate action is essential.
Cocoa farmers deserve a greater share of chocolate’s final retail price. While initiatives like Fair Trade and the Living Income Differential (LID) are positive steps, they are not enough; more action is needed to ensure fair compensation and sustainable livelihoods.
🍫 Ghana must prioritize investment in local chocolate production rather than exporting raw cocoa beans. This shift will create thousands of jobs across manufacturing, packaging, marketing, and distribution while keeping more profits within the country instead of benefiting foreign processors. A thriving domestic chocolate industry will strengthen the economy, attract foreign investment, and enhance exports of high-value finished products.
🍫 Stakeholders must demand transparency from chocolate manufacturers regarding sourcing, pricing, and fair compensation for farmers. This is essential to ensure ethical practices, fair compensation, and accountability.
Chocolate shouldn’t come at the cost of poverty and exploitation. Instead, it should be a symbol of shared joy, fairness, and ethical trade. A more equitable chocolate industry is feasible, one in which everyone benefits.
