The world’s biggest chocolate makers are seeing their profits soar, but are failing to deliver on their promises to improve the wages of farmers who grow cocoa in Ghana, one of the main producing countries, the NGO Oxfam denounces on Thursday in a report.
Oxfam cites in particular the American companies Hershey and Mondelez as well as the Swiss Lindt and Nestlé, which “Together have made nearly $ 15 billion in profits from their confectionery divisions alone since the start of the pandemic, up 16% in average since 2020.
In its statement, Oxfam also notes that the fortunes of the Mars and Ferrero families, who own the giants of the same name, have soared by tens of billions of dollars since 2020, according to the ranking of Forbes.
Meanwhile, the net incomes of 400 cocoa farmers surveyed by the organization across Ghana “have fallen by an average of 16% since 2020, with women’s incomes falling by nearly 22%”, the NGO says. in a press release.
Up to 90% of cocoa farmers in Ghana do not earn enough to afford enough food or other staples, and their situation has deteriorated since the pandemic, the report adds.
The NGO also notes that while Ghana produces around 15% of beans worldwide, it receives only around 1.5% of the annual global benefits of the sector, estimated at 130 billion dollars per year.
Ghana and neighboring Ivory Coast together produce about two-thirds of the world’s cocoa.
The chocolate makers targeted by the report who responded to AFP’s requests all specified that they paid a premium directly to producers to supplement the purchase price of the cocoa.
But Oxfam believes that these premiums are insufficient and calls on the major groups in the sector to “significantly increase the prices paid to farmers and mitigate the impact of inflation” on their costs.
Falling aid and returns
Asked by AFP, Nestlé said “it cannot influence farm gate prices because of the structure of the cocoa trade in Ghana”, but assures that the company is doing “everything it can to help the families of producers”, in particular via bonuses.
Ferrero said it encourages “crop diversification and helps [les agriculteurs] to establish additional sources of income,” while a Mars spokesperson said the group “works with women and their families […] to improve their livelihoods.
Lindt & Sprüngli assured for its part to offer training to producers as well as aid to diversify their income or access financing, and invest in local infrastructure, according to a spokesperson.
Oxfam explains that it has looked into the sustainable development programs of the giants of the sector, “all of which have as a priority to help farmers produce more cocoa”.
But none of these programs achieved their objective—yields even declined—thus failing to increase farmers’ incomes, the report says.
Fair trade labels themselves, if they guarantee a higher income for the producer, are insufficient to allow farmers to earn a decent living, Oxfam told AFP.
“Without fair pricing and decent incomes, there will never be ‘sustainable’ chocolate” for farmers, insisted Amitabh Behar, acting director of Oxfam.
Contacted by AFP, the other chocolate makers mentioned did not immediately respond.