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Transcript of Cocoa industry
5 themes of Geography
Place - Cocoa is grown in areas that are humid along the equator like Brazil and the Dominican Republic.
Region - Cocoa is produced in countries in a belt between 10ºN and 10ºS of the Equator. In order to thrive, cocoa needs constant amounts of rain fall and plenty of rain.
Location - Cocoa is grown in less developed countries along the equator that have a suitable climate for growing cocoa trees. Africa, South America and Indonesia are primary cocoa producers.
Human environmental interaction - Cocoa is a plant which is in increasing demand. Chocolate has the potential to become unaffordable for some people due to rising cocoa prices.
Social - With chocolate prices rising, daily consumption of chocolate may not be as common as it previously was. Chocolate has the potential to become a delicacy that only the rich can afford.
Technological - Cocoa is shipped to chocolate factories where the cocoa beans are compressed to extract cocoa butter which is an essential ingredient when making chocolate.
Economical- 90% of cocoa is grown on small family farms in developing countries. Each farm has 2 to
5 hectares of land which is very small considering that this provides most of the world’s cocoa.
Environmental - Insects and a variety of diseases prevent almost 30-40% of cocoa production in some years. When fungus attacks a cocoa tree, the affected branches do not produce any cocoa pods.
Political - There have been many projects that have been developed with the intent of helping smallholder cocoa farmers get paid fairly for their product.
Who are the stakeholders?
Stakeholders are companies or individuals that have a financial interest in an industry. All Chocolate companies are stakeholders in the cocoa industry.
What is their view on the issue?
Stakeholders are greatly concerned about the cocoa industry because there is a increase of demand for chocolate which has resulted in increased prices.
Why do they hold this view?
The cocoa crisis is very important to stakeholders because in some countries, such as Ghana, cocoa farming provides more than half of the household incomes.
Courses of action
To help make the Cocoa industry sustainable, there are schools that help train farmers to be more productive. They are taught to make their production methods more efficient and how to use old pods as fertilizer for cocoa trees.
This is essential for the industry because farmers are being taught to make their business even more productive and successful.
There have been initiatives to improve Cocoa quality and flavor, as well as the promotion of cocoa products and pest management which are all important if the cocoa industry is to become sustainable.
In the united nations, there is a branch called the Common Fund for Commodities or CFC. Essentially this is a bank that provides money to initiate projects. In 2004, the CFC provided US$ 3,916,120 to small cocoa farmers to make quality cocoa at lower production costs.
There are many projects that are improving the sustainability of cocoa production. This is essential because the cocoa industry provides millions of jobs from planting cocoa trees, harvesting the cocoa beans, to the production and sale of chocolate.
Who - The main cocoa producers are Cote d’livore, Ghana, Nigeria, Cameroon. They produce the
greatest amount of cocoa in tons for the world. (faostat data, 2013)
What - Cocoa beans are needed to make chocolate.
Where - In western Africa along the equator, most of the world’s cocoa is produced. South America and Indonesia are also major cocoa producers.
When - This issue has become more evident in the past 12 months, due to the rising cost of cocoa.
Why-" Chocolate used to be a delicacy but is now common in less developed countries like India. "emerging markets are causing cocoa producers to raise prices because of increased demand."
How- Cocoa plants are grown and then shipped to a chocolate company like Hershey and cocoa butter is used as a key ingredient for chocolate.
Movement - Cocoa is bought from farmers then is transported to a port that globally distributes cocoa to chocolate companies.
Cocoa farmers do not get paid directly by the chocolate companies, they receive payment through middlemen who transport the cocoa. These middlemen work for large shipping companies that transport the cocoa globally by boat.
If something happens to the cocoa industry, then that will affect chocolate companies such as Hershey’s.
To have a sustainable industry, many things are needed. Standard of living for the farmers needs to be higher, workers need to be supported and shown techniques and practices to help improve their productivity to keep up to an increasing demand.
Without farmers being taught how to successfully meet the increasing demands of the cocoa industry, small family farms are at risk of not being able to sustain their production of cocoa.
Insects like mirids, which are most common in West African countries such as Ghana, can damage cocoa plants.
Due to large number of insects and damage done to the plants by the insects, pesticides are necessary. This solves the insect problem but, this also affects the quality of the cocoa by spraying chemical on the plants.
These Fair Trade projects were initiated to increase a farmer’s productivity and help increase their well being.
" Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade.
It contributes to sustainable development by offering better trading conditions and securing the rights of disadvantaged producers and workers - especially in the South"
There have been many projects piloted by the ICCO, the International Cocoa Organization that have the intention to make the chocolate industry more sustainable.