Sustainability of supply chain




The cocoa supply chain, such as production, the market and the environment, is at risk!!!




At the beginning of the 21st century, the international media focused on the cocoa supply chain due to irregular employment situations. Subsequently, the international cocoa agreement supported the development of a sustainable cocoa economy (United Nations, 2001).

Studies have been carried out to identify child labor activities, gender disparities and unfair working conditions for thousands of workers, especially in Africa.

Another result of the great concern about situations related to cocoa production was the study conducted by the World Bank (2012) on the agricultural sector of cocoa in Ghana, one of the most important world producers.

This report concluded that various phases of the cocoa supply chain, such as production, the market and the environment, were at risk. 

These sectors are closely associated with the long-term growth and sustainability of the cocoa supply chain.

Since that time, this issue has become extraordinarily relevant in the debates of policy makers and stakeholders on the global cocoa industrial chain. Some characteristics of the three spheres of sustainability (social, economic and environmental) will be slightly clarified. Firstly, the social element of the sustainability of the cocoa industry is quite relevant, considering that this sector is characterized by an intense family activity, about 40-50 million people work in the cultivation of cocoa.

In the 2015/16 harvest, family-based cocoa cultivation was responsible for a worldwide production of 3.9 million tons and an export of products of approximately $ 47 billion (The International Cocoa Organization, 2018 ; International Trade Center, 2019a).

Based on these numbers, ensuring a decent and equitable livelihood for cocoa farmers remains a priority in the sector, along with the importance of education and ongoing training in cocoa farming communities.

Second, on the economy side, the cocoa industry faces difficulties such as fluctuating cocoa bean prices and speculation, low investment, exorbitant taxes, changes in global economic growth and fluctuations in the US dollar relative to the other major currencies. In addition, political and social instabilities in the main producing countries affect cocoa prices (The International Cocoa Organization, 2012).

Thirdly, the environmental aspects of the cocoa industry present some relevant issues, such as the need for environmental instructions for better management of natural resources (i.e., land and water), regulation of the use of pesticides to reduce negative effects on environment and farmers’ health without affecting expected productivity, conservation of local ecosystems and biodiversity and improving the ability to respond to possible climate change and possibly adequately manage the waste generated during cocoa production.

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