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Fair trade cocoa facts for kids

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Cacao-pod-k4636-14
A cacao seed inside its fruit, called a pocha, from the cocoa tree.
Cacao
Cocoa seeds drying in the sun before they are roasted.
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Cocoa seeds being roasted.

Fair trade cocoa is a special kind of cocoa bean. It comes from cocoa trees and is grown and sold in a way that is fair to farmers. This means farmers get a good price for their cocoa. It also helps them and their families have a steady income. Companies that use fair trade cocoa can show that they support farmers. They help create a better world for people and the environment.

Why Fair Trade Cocoa Started

In the 1990s, most cocoa came from small family farms. These farms were mainly in West Africa and Latin America. Farmers often sold their cocoa to middlemen. They didn't know how much their cocoa was really worth. Because prices were very low, farmers struggled to make enough money. This sometimes led to very unfair working conditions, including child labor, in some cocoa-growing countries.

To fix these problems, fair trade cocoa certification was created. The first fair trade cocoa product was a chocolate bar called Green & Black's Maya Gold. It was made with cocoa from Belize in 1994. This was a big step! Soon, organizations like Fairtrade International (FLO) started to certify fair trade products around the world. In 2002, Fair Trade USA also began certifying fair trade cocoa in the United States.

What Makes Cocoa Fair Trade?

Fair trade groups have rules to make sure cocoa is fair. Here are some common rules:

  • Fair Prices: Fair trade helps farmers work together in groups. This way, they can get fair prices for their cocoa beans.
  • No Child Labor: Fair trade groups check that no children are forced to work. If they find problems, they act fast to keep children safe.
  • Protecting the Earth: Fair trade rules help farmers grow cocoa in a way that is good for the environment. They do not allow harmful chemicals or GMO crops.
  • Community Help: Farmers get a guaranteed price for their cocoa. Buyers also give extra money for community projects. This money helps build schools, health clinics, and brings clean water to villages. It also helps farmers improve their cocoa quality.

Fair Trade Cocoa in the United States

By 2010, there were 62 groups of cocoa farmers in the US fair trade system. These farmers were in countries like Bolivia, Ghana, and Peru. In 2010, the amount of fair trade cocoa products sold in the US grew a lot. It increased by 67% from the year before!

However, fair trade cocoa is still a small part of the total chocolate market. In the USA, a product can be called "Fair Trade Chocolate" even if only 11% of its cocoa is fair trade. Sometimes, if other ingredients are fair trade, the amount of fair trade cocoa can be even less. In 2010, the Kit Kat chocolate bar started using fair trade cocoa.

How Fair Trade Helps Farmers

More Money for Farmers

Usually, cocoa farmers get only a tiny part of the money from a chocolate bar. In Ghana and Ivory Coast, where most cocoa comes from, farmers can earn as little as 50 cents a day. Their income depends mostly on cocoa farming.

The price of cocoa can change a lot. But fair trade certification sets a minimum price for cocoa. Farmers get either the market price or the fair trade minimum, whichever is higher. In 2011, the minimum price for fair trade cocoa was raised to $2000 per ton. This minimum price helps farmers have a steady income. It gives them financial stability and helps them plan for the future. This leads to a better life for farmers and their families.

Also, the average age of cocoa farmers is about 50 years old. Young people often leave farming because the pay is so low. By increasing wages, fair trade encourages younger generations to stay. This helps the cocoa industry keep going.

CocoaPrice
The world price of cocoa in US dollars per kilogram from February 2013 to March 2017.

Since 1998, Fair Trade USA has helped US companies give over $220 million extra to cocoa farming communities. This money goes directly to the farmers' groups.

Helping Communities Grow

Since 2002, Fair Trade USA certified cocoa companies have given $1.25 million directly to cocoa farmer groups. This money is for community projects. These projects help communities get better healthcare and education. They also support women and protect the environment. Most of these fair trade cocoa groups are in West Africa and Latin America.

More Fairness for Women

Women often work on cocoa farms but get paid less than men, or sometimes nothing at all. In Ivory Coast, women do almost 70% of the farm work but receive only about 20% of the income. They also own only a small part of the land. This makes it hard for women to get loans to improve their farms.

Fair trade cocoa aims to pay everyone equally, no matter their gender. When women earn more, they can invest in their farms. This helps grow more and better cocoa. Also, when women have more income, it often improves the lives of their children too.

How Fair Trade Helps the Environment

Growing cocoa can sometimes harm the environment. For example, in Ghana, which produces a lot of cocoa, farming can lead to problems like water pollution from pesticides.

To get fair trade certified, cocoa companies must follow environmental rules. They have to check how their farming affects the environment. Then, they make plans to reduce any harm. These plans include using water wisely, rotating crops, and reducing carbon pollution. They also protect different kinds of plants and animals. Fair trade rules also ban GMO crops and make sure pesticides are used safely.

Some pesticides used in regular cocoa farming are very harmful. For example, Lindane can cause breathing problems and seizures. Cocoa farmers often work without proper safety gear because they are poor. This means they are exposed to these chemicals for a long time, which can cause serious health issues. Fair trade helps farmers earn more, so they can buy safety gear. Many fair trade groups also encourage farmers to switch to organic farming and ensure safe working conditions.

Companies and Fair Trade Cocoa

The chocolate industry is huge, worth billions of dollars worldwide. In 2015, the US chocolate market alone was worth $22 billion. This means the US can have a big impact on cocoa farmers globally. Theo Chocolate, started in 2006, was the first company in the US to be both fair trade and organic certified. Many other chocolate companies have followed.

Hershey

People have asked Hershey, a very big chocolate maker, to use more fair trade cocoa. As of 2012, these efforts had not made much progress.

Ben & Jerry's

The ice cream company Ben & Jerry's promised to use fair trade certified cocoa in all its ice creams by 2013.

Endangered Species Chocolate

Endangered Species Chocolate, a chocolate company in Indiana, used to be fair trade certified. In 2006, they stopped their certification. Instead, they decided to send the money they would have paid for certification directly to the farmers they work with. This way, they still make sure their cocoa farmers get a fair wage.

Some people worry that if a company doesn't have a fair trade certificate, it might not truly follow fair trade rules. But companies that pay for certification say that money doesn't go to farmers. It's a tricky balance.

Cadbury

In 2009, Cadbury announced that its Dairy Milk chocolate in the UK would be fair trade. This was then done in other countries like Australia and Canada. Cadbury also put the Fairtrade certification mark on its chocolate bars.

In 2017, Cadbury changed its approach. With its parent company Mondelez, it started its own "Cocoa Life" program. This program plans to help 200,000 cocoa farmers by 2022. Some people were worried when Cadbury left the Fairtrade Foundation certification. But both Cadbury and the Fairtrade Foundation said they still work together.

Stopping Child Labor

Because regular cocoa farming pays so little, many farmers cannot afford to hire workers. So, they use child labor instead. In 2009, over 109,000 children in Ivory Coast were involved in child labor. This means many children could not go to school. UNICEF found that from 2008-2012, only about 67% of boys and 55% of girls went to primary school.

Fair trade practices forbid child labor and pay farmers a fair wage. This allows more children to go to school and get an education. Getting an education is a big step toward breaking the cycle of poverty.

Organizations like Global Exchange agree that fair trade cocoa helps end child labor in cocoa production. In 2001, the US cocoa industry set a goal to stop child labor by 2005. But by 2012, this goal had not been met. Global Exchange believes that if more people choose fair trade chocolate, the industry will adopt fair trade certification.

A 2018 report said that systems to monitor child labor are helping. But they are still only reaching less than 20% of the over two million children affected.

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