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Faculty of Social Sciences

Low wages for cocoa farmers threaten sustainability

May 09, 2023

cocoa farmers

(Cocoa farmers in Western North Region of Ghana discuss the income they receive from cocoa. Credit: Marshall Adams)

Low wages for cocoa farmers in West Africa threaten sustainability of the chocolate industry

MUNICH – Persistently low farmer incomes drive unsustainable cocoa practices in in two small countries in West Africa: Ghana and Côte d’Ivoire, where two-thirds of the world’s cocoa is grown. The Governments of Ghana and Côte d’Ivoire have joined forces to demand that the cocoa industry pays the Living Income Differential (LID). This additional US$400 per ton is meant to be directly transferred to cocoa farmers.

Using a rigorous policy evaluation method that engaged over 50 experts, both internationally and in Ghana, a published in the journal World Development () shows that there is widespread agreement on the need to increase farmer incomes, but opinions diverge on whether the LID is viable. Specifically, there are fears that that the LID will increase unsustainable production methods including widespread deforestation in biodiversity hotspots.

UVic professor Sophia Carodenuto, who led the study, says: “It is clear that global cocoa trade needs structural changes in pricing to ensure environmental sustainability. Right now, the poorest farmers pay the price of sustainability in terms of market exclusion. The chocolate industry is trying to invest in sustainability, but success remains limited and deforestation rates continue to increase.”

Carodenuto’s research engages cocoa commodity traders to better integrate social considerations into corporate sustainability programming. Learn more about her work here:

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