Cacao

Cacao

 

Cameroun, Bafia

How is it produced?

Cacao in Cameroon is produced by smallholder farmers who cultivate it on plots of less than three hectares. The country’s tropical climate and fertile soils support cacao farming, particularly in the Centre, South-West, and Littoral regions. Farmers harvest cacao pods, extract the beans, ferment, and dry them before selling to intermediaries. Limited access to modern farming tools and fertilizers keeps productivity low, while reliance on manual labor, including child labor, is common due to poverty.

Describe the supply chain to the store shelf in Canada:

The cacao supply chain begins on small farms in Cameroon, where beans are harvested, fermented, and dried. Farmers sell the raw beans to local traders or cooperatives. These beans are then exported by multinational corporations like Barry Callebaut and Cargill. After being processed into chocolate products in factories, the finished goods are distributed globally. Retailers in Canada stock these products, making them available to consumers in stores.

What is the power balance between the producer and seller?

The power balance is heavily skewed in favor of multinational corporations and retailers. Cameroonian farmers earn only 6-7% of the retail price of a chocolate bar, while corporations control much of the pricing and distribution process. Middlemen and exporters further reduce farmers’ income through exploitative pricing practices. Farmers have minimal influence over market prices, which are set on international commodity exchanges.

Can you recommend changes to the system to improve the balance?

Improving the power balance requires collective action. Recommendations include supporting farmer cooperatives to strengthen bargaining power, implementing more effective certification programs like Fairtrade, and enforcing corporate accountability for ethical sourcing. Additionally, investing in farming infrastructure, education, and sustainable agricultural practices could help increase productivity and incomes for farmers.

References/Resources:

  • Food and Agriculture Organization (FAO). (2021). Global Cacao Production Report.
  • International Cocoa Organization (ICCO). (2018). Annual Cocoa Market Review.
  • International Labor Organization (ILO). (n.d.). Cacao Farming and Child Labor.
  • Rodrik, D. (2011). Globalization and Economic Development.
  • Ellwood, W. (2015). The Global Cacao Trade.
  • Global Forest Watch. (2021). Deforestation Data for Cameroon.
  • Stiglitz, J. (2006). Making Globalization Work.