There’s an unfair distribution of value and power in the chocolate industry. Its supply chain starts with the millions of farmers who produce cocoa and ends with the billions of consumers who enjoy chocolate. But what about the bit in the middle? This in-between part is dominated by a group of chocolate giants that profit from keeping the cocoa purchasing price as low as possible. As a result, farmers are forced to live in poverty.. leading to child labor and forced labor.
the problem
Almost everywhere in the world, chocolate lovers are provided for with a wide range of flavors to enjoy. Big Choco companies make a lot of profit. Nothing wrong with that – without profits a company would go bankrupt. So far, so good. Less good, however, is how those profits are made – by the systemic underpayment of and underinvestment in cocoa farmers. Which drives millions into poverty, forcing them to turn to illegal labor practices – especially child labor – and deforestation. This then leads to more exploitation in a vicious but avoidable cycle..
2.5 million farms in Ghana and Côte d’Ivoire produce more than 60% of all cocoa worldwide.
Ghanaian and Ivorian children are involved in child labor because their parents aren’t able to earn a living income from the cocoa they sell. This isn’t normal or acceptable to us.
people are victims of forced labor, as confirmed by recent findings. These adults and children are forced to work on cocoa plantations without getting paid. In reality, this number is probably much higher since no research has been conducted in areas in which cocoa is being farmed illegally.
Today, many companies’ existing commitments are vague and opaque. What’s more, many of their sustainability initiatives focus only on what farmers need to improve – and not on how companies need to change their purchasing practices.
Tony’s Open Chain currently sources around 0.5% of all West African cocoa. Our ambition is to increase this market share 10 times over the next 10 years, totaling 5% of the West African cocoa market. These numbers show: there is still plenty of work to be done to ensure accountability across 100% of the supply chain. While we are doing our part, Big Choco (also) needs to step up to the plate to have big impact on bean volumes.
And what about certified beans, you ask? They, too, have their problems – they don’t, for example, guarantee humane labor conditions. In contrast, all beans sourced through Tony’s and our Mission Allies come from farms whose households are covered by the CLMRS. Which brings us back to the topic of working together via Tony’s 5 Sourcing Principles to make a long-lasting systemic impact.
what?! forced labor?
The cocoa sector today is still full of human rights violations, including forced labor and child labor. The systemic underpayment of cocoa farmers is exploitation. Which drives them into poverty, forcing them to turn to illegal labor practices – especially child labor. This leads to more exploitation in a vicious and avoidable cycle.
so.. what do we mean exactly by forced labor?
We call any form of “work that is performed involuntarily or under the treaty of penalty” (ILO Convention 130) forced labor. It refers to work that is done by any person under duress and for which they’ve not offered themselves voluntarily.
child labor, in a cocoa shell
Just before, we talked about forced labor, but we want to be very clear: child labor and forced labor are not the same thing. Dangerous working conditions or working during school hours are forms of child labor, not forced labor. Child labor occurs far more often than forced labor, and can occur in different levels of severity, as shown in the ILO table below:
Together, we’ll end all forms of exploitation in the cocoa industry. How? Well, it won’t be easy as it’s a complex issue, but we know we’ll accomplish it with the help of Tony’s road map. This map points us in the direction of fairer chocolate on the basis of our 3 pillars of action.
Tony’s road map to end exploitation in cocoa
Together, we’ll end exploitation in cocoa. Not just the cocoa in our chocolate, but in all chocolate worldwide. To help get us there, we’ve created a road map that outlines our long-term goals. Every year we take (small and large) steps that move us towards these goals. Our road map consists of 3 pillars of action:
We believe it’s important to raise awareness about what child labor is – and how to protect children’s rights – among cocoa farmers and people in cocoa communities. Because change will only happen once awareness becomes widespread. Community Facilitators and Tony’s Ambassadors work to achieve this through ongoing education and events like public talks and get-togethers aimed at raising awareness and celebrating successes while informing and inspiring parents and children.
We want all Choco Fans to be aware of the injustice in the cocoa industry. If retailers and Choco Fans actively demand ethically produced chocolate, chocolate companies are more likely to take responsibility for making it happen. That way, Choco Fans will know what’s going on and can join us in our commitment to change the industry.
We lead by example and show that chocolate can be made differently, so chocolate makes everyone in our supply chain happy. For this to work, we have to make commercially successful chocolate without the use of forced labor or exploitation.
We invest in long-term partnerships with cocoa farmers, make fairer price agreements and show cocoa farmers how to be more organised and improve their productivity so they can achieve a living income. We make chocolate with 100% traceable cocoa.
We inspire other key players to take action and are actively seeking partners to share our sourcing model with via Tony’s Open Chain. We encourage chocolate brands to source cocoa according to Tony's 5 Sourcing Principles by showing them what impact we’re making, sharing lessons we’ve learned and always being open to discussion. We’re very critical of our own efforts and we’re constantly looking to see how we can make more impact. We’re always happy to follow good examples set by others, such as the Child Labor Monitoring & Remediation System (CLMRS). We maintain an ongoing dialogue with politicians, NGOs and academia to increase the pressure on the industry to adopt Tony’s 5 Sourcing Principles to end exploitation in cocoa.
From weighing to buying to selling cocoa beans, everything is carefully documented. Lookin’ good!
Boekie visiting farmers in Aponoapono. Nice convertible, mane dancing in the wind.. travelling in style.
Tony’s 5 Sourcing Principles
Tony’s 5 Sourcing Principles are our tried-and-tested solution for ending exploitation in cocoa. Following these principles addresses poverty by enabling cocoa farmers to earn a living income. This is crucial for putting an end to forced labor, child labor and deforestation on cocoa farms in West Africa.
We believe all chocolate companies must adopt Tony’s 5 Sourcing Principles when doing business with cocoa farmers. Not 1 principle, not 2 principles but – and this is very, very important – all 5 principles are needed to change the norm in cocoa!
1. traceable cocoa beans
The beans we use for our cocoa mass and cocoa butter are 100% traceable. And we’re proud of that! There’s no anonymous ‘pile’ of beans to hide behind in our supply chain. We purchase directly from our partner cooperatives in Côte d’Ivoire and Ghana (find out more about them in our latest annual FAIR report).
All our partners keep records of their cocoa stock in BeanTracker, our digital logging system. From the plantation all the way through to storage (be it in Antwerp or Chicago): we maintain 100% transparency on the number of beans, where they are coming from and where they are going.
All our partners have access to BeanTracker. So, whenever a container arrives in the Antwerp port, the managers at our partner cooperatives know where it is. And they know that when the beans arrive, payday is just around the corner.
By working this way, we can guarantee that all the beans in all our bars come from the partner cooperatives we work with. This is what makes us (and our Mission Allies) unique! We take 100% responsibility for the beans we source.
2. a higher price
Until there is a sustainable solution for the ongoing low cocoa prices, we bridge the gap between the farmgate price (aka the price farmers are usually paid) and the Living Income Reference Price (LIRP) (aka the price they should be paid to learn a living income) pay paying premiums. These premiums consist of 2 parts: the Fairtrade premium and the additional living income premium. The additional premium is determined at the start of each cocoa season, based on the minimum farmgate price determined by the governments of Ghana and Côte d’Ivoire. When the new farmgate prices are set, we check if our farming costs and livelihood data are still correct. We then adjust our additional premium to ensure the farmers we work with are being paid a price that enables them to earn a living income.
The living income premium over the 2022/23 main-crop farmgate price was €505 per metric ton of cocoa in Côte d’Ivoire and €669 per metric ton of cocoa in Ghana. These figures are on top of the Fairtrade premium of €563 per metric ton cocoa, also paid by Tony’s in Côte d’Ivoire and €247 in Ghana. In the past year, we worked with 17,740 farmers who got paid these extra premiums.
the living income premium
So, is every farmer immediately able to escape poverty when we pay a higher price? No. It’s not that simple (for example: some farmers have income from multiple sources or sell their cocoa to other companies who don’t pay the LIRP). This is why all 5 of Tony’s 5 Sourcing Principles need to be implemented by all chocolate companies to end exploitation in cocoa. No cherry picking, remember?
3. strong farmers
Collaborating with cocoa partner cooperatives to enhance and professionalize cocoa farming practices, as well as implementing sustainability programmes, represents the path towards lasting change in the cocoa sector. When farmers work together, they can collectively address and transform the inequalities present in cocoa. Strong cooperatives have a better negotiating position and can buy fertilisers, training and equipment in bulk. We are proud of the commitment shown by the farmers we work with. In both Ghana and Côte d’Ivoire, there is a huge turnout at the annual member meetings. The halls are full! We make sure that delegates from the Tony’s Open Chain team are there too to foster direct connections and build relationships at eye level.
4. the long-term
We work with partner farmers for a minimum of 5 years. That way they know they’ll receive the living income premium for their harvest for the next few years and can invest in their farms beyond the end of next week, next month, or even the end of next year.. They can buy new cocoa plants that produce a better harvest or invest in farming equipment or training. As a result of our long-term relationships, the farmers also gain awareness of the consequences of child labor. We implement projects that address pressing issues, such as child labor and farmers’ rights.
One such initiative is the Child Labor Monitoring and Remediation System (CLMRS), which surveys the partner cooperatives and helps improve cocoa farmers’ living conditions. Because before we can talk about eliminating child labor or forced labor, we have to help ensure supportive conditions in the communities.
And by the way, our collaboration agreement contains a transparency clause. We’re happy for our partner cooperatives to share our agreement with other potential buyers. That way they can negotiate the same commitments and agreements.
5. quality & productivity
When it comes to cocoa cultivation, it is vital to invest in agricultural knowledge and skills in collaboration with partner cooperatives. Developing expertise in farming practices leads to improved quality and increased cocoa yields from farms. This enables farmers to generate additional income and helps prevent deforestation.
The living income premium also encourages farmers to improve their crop. As their farms become more profitable, their motivation increases. A win-win! It also enables them to invest in production resources, like better fertilizer, and to deploy professional pruning brigades and plant new cocoa trees. This increases the quality of their beans and can double their productivity.
Of course, while all this can happen relatively quickly, it doesn’t happen overnight. Change takes time, but we see progress over time.
so.. are the solutions working?
The short answer? Yes! But there’s still much work to be done. The long answer? Read Tony’s Open Chain 2022/23 Impact Report to sink your teeth into the latest data and findings.
We can’t achieve our goals alone. By ourselves, we’ll end exploitation in our cocoa supply chain. But together, we can change the industry across the globe. The more people join us and share our story, the sooner we’ll end exploitation in cocoa together. The choice is yours.. Are you in?
all hands on deck!
All of the players in the cocoa supply chain have responsibilities. The following 5 Key Players must work together to end exploitation in cocoa. Each player contributes to changing the status quo in their own way.
chocofans
cocoa companies
commit to Tony’s 5 Sourcing Principles:
retailers
cocoa farmers
governments in cocoa-producing countries
