How Should The Cocoa Industry Tackle Challenges And Limitations?

 

The cocoa industry is one of the most important in the world. Only two countries supply more than half of the global cocoa products ―Ghana and the Ivory Coast. However, cocoa also comes from countries within the “cocoa belt,” which are within 20 degrees of the Equator, including Nigeria, Madagascar, and the Republic of Congo.

Unfortunately, the cocoa industry is barely meeting global demand due to a series of factors that hinder production and manufacturing. According to the World Bank, cocoa prices rebounded at the end of 2024 after a short period of producer relaxation. The cocoa production rate also slowed down during the same period.

It is difficult for all parties within the industry to tackle environmental and socio-economic challenges, but it is necessary to prevent the sector from heading in the wrong direction. Let’s examine the subject.

Image source: https://pixabay.com/photos/cocoa-men-colombia-farmer-hand-452911/

What are the environmental issues found in the cocoa industry?

Cocoa trees successfully grow and provide crops in a particular environment ― where high temperatures and a lot of rainfall help keep the moisture at productive levels. However, reaching these requirements has become quite challenging due to climate change, which is why finding cocoa wholesale that’s both satisfying and sustainable is difficult:

  • The deforestation in regions like Ghana and the Ivory Coast has led to massive reductions in forest cover. So, the loss of biodiversity affects cocoa crops;
  • The increasing sensitivity to climate change, including severe droughts and intense rainfalls, hinders the creation of optimal growing conditions;
  • The use of chemical fertilizers is putting a financial strain on farmers who need to protect their crops to ensure their income;

Researchers recommend a series of improvements

The demand for cocoa ingredients will increase in the future, but we will only be able to supply it if change happens. Still, climate change poses serious risks to the cocoa sector, and one of the best solutions includes pollination, which could boost yields significantly.

Experts found that insects like midges and thrips lack pollination, affecting both healthy and poor crops. To counteract this, they recommend enhancing pollination by preserving soil organic matter, supporting shading, and reducing the use of chemical fertilizers.

Between hand pollination and natural pollination techniques, we notice that arthropods are a frequent option, but we might not see the opportunity for wind or water pollinators to be included in the process of expanding crops. Cocoa could produce much more pods if pollination were taken more seriously, so pushing for leaf litter and a cooler climate altogether could help the sector tremendously.

Therefore, the cocoa industry could be helped faster without the need for farm expansion. Farmers and companies should work together to push for biodiversity-centered and climate-resilient techniques, which massive pollination can help.

Addressing deforestation through traceable technology

The causes of deforestation in the areas where cocoa grows are directly linked to cutting down forests to make more space for cocoa crops. Since most farmers need to find more land to grow their crops and support their living, this can be considered a never-ending cycle.

First, farmers need better support, especially financially. They are responsible for numerous tasks, from getting their certification to managing mapping and agroforestry, but they rarely receive the income they deserve. Companies must see them as partners and help them find better ways to grow their crops, as well as offer them better salaries and incentives.

Stopping deforestation can also be handled through traceability tools that show the origin of cocoa products. Transparency initiatives are important in the cocoa sector as they show the consumer whether the cocoa was sourced from deforested areas, allowing them to make the right choice.

Reducing the carbon footprint

The way agriculture is done around the cocoa sector is also problematic. Agri-food systems contribute to GHG emissions, and in the case of cocoa, the footprint comes from the production level due to the way the land is used. Land use change, including deforestation and degradation, contributes the most to the carbon footprint, but farm management (growing, harvesting, fermentation, and drying) is also at fault.

Some of the ways carbon footprint can be controlled in the cocoa sector include the following:

  • Switching to agroforestry by approaching different ways to grow cocoa, such as increasing it in mixed shades, rusting shades, or productive shades;
  • Reforestation is also essential, as it could replenish some of the biodiversity lost in countries like Ghana;
  • Climate-friendly farming would also be ideal, such as employing a natural drying process rather than continuing with gas-dried cocoa;

Pushing for corporate responsibility for suppliers

As mentioned before, there are numerous actors involved in the industry, and some of the suppliers responsible for bringing cocoa from their native countries to the entire world have their faults as well. Many have contributed to deforestation, land grabbing, and the growth of using hazardous substances and pesticides on farmers, so companies must impose strict regulations on suppliers.

A code of conduct should apply to direct suppliers and continue within the supply chain to their suppliers. This could mean that suppliers are considered only if they have actionable targets and plans to reduce their impact on the environment and frequently report their greenhouse gas emissions.

It’s always best to work with certification and service providers who support entities in approaching the phases of sustainability:

  • Being aware of the sustainability issues in the cocoa industry;
  • Taking the first step into using sustainability as a competitive advantage;
  • Employing multi-stakeholder initiatives within the sector and civil society;
  • Making sustainability the new norm through institutionalization;

Final considerations

The cocoa industry is one of the most in-demand but is damaged. By ignoring the effects of climate change on nature, we’ve failed farmers and countries whose contribution to the global chocolate and cocoa industry is significant. Now, we are looking for solutions like pollination and sustainable agriculture to save the production of cocoa, especially since the demand for these products will increase in the future. Companies should also work with suppliers who are equally responsible and wary of the strain farmers experience.