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Ivory Coast's Cocoa Economy

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The spread of cocoa cultivation in Ivory Coast was significantly influenced by France's interventionist and restrictive colonial policies. Unlike other West African producers, the large-scale diffusion of cocoa occurred later in Ivory Coast, where coffee cultivation was also integrated with cocoa farming starting in the 1930s. This approach fostered a distinct "pioneer front" for cocoa cultivation, particularly between the 1950s and 1980s, which rapidly expanded from the center to the south-west of the Ivorian forest zone.[1]

Ivory Coast, or Côte d'Ivoire, was once celebrated for its religious harmony and strong economy after independence from France. However, an armed rebellion in 2002 divided the nation, leading to cycles of violence and peace efforts. Despite this instability, Ivory Coast remains the world's largest cocoa exporter, providing relatively high incomes for its citizens. The country's colonial history laid the foundation for its modern economy, centered on cocoa farming.[2]

The $100 Billion Chocolate Disparity

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In the 2022/23 season, Ivory Coast authorized 102 companies and cooperatives to export cocoa and coffee, including 52 export companies, 41 cooperatives, and nine grinding companies. This authorization was granted by the Coffee and Cocoa Council (CCC), the industry regulator.[3]

Despite producing over 45% of the world’s cocoa, Ivorian farmers receive only about 4% of the $100 billion chocolate industry revenue. This economic imbalance reflects ongoing challenges related to historical exploitation, with the global chocolate market's benefits largely going to international corporations rather than the local farmers who drive production.[4]

A farmer in Ivory Coast cultivating cocoa, showing the role of cocoa production in the country's economy and livelihoods.

Struggles of Ivorian Cocoa Farmers

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Millions of Ivorian cocoa farmers live on less than $0.78 a day, reflecting the ongoing economic challenges within the industry. Efforts to address these issues include initiatives aimed at ensuring fair compensation, reducing child labor, and combating poverty, but progress remains slow due to entrenched systemic issues.[5]

Ivorian cocoa farmers face significant challenges, contending with climate change, market inequality, and rising production costs. Recent yields have dropped from 600 kilos per hectare to just 300 kilos, impacting their livelihoods. Although cocoa prices recently increased to 1500 CFA francs ($2.48) per kilogram, farmers continue to seek fair compensation for their efforts.[6]

Notably, women play a crucial role in Ivory Coast's cocoa sector, doing about 70% of the work on cacao farms while receiving only about 20% of the income. Despite challenges such as limited land ownership—only 25% of landowners are women—they are increasingly gaining leadership skills and advocating for fair compensation through initiatives like the Women’s School of Leadership.[7]

Towards a Fairer Cocoa Industry

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In 2022, Ivory Coast solidified its position as the world's largest exporter of cocoa beans, with exports totaling $3.33 billion. The leading markets for Ivorian cocoa beans were the Netherlands, Belgium, the United States, Malaysia, and Germany. Notably, Brazil, Canada, and Mexico emerged as the fastest-growing export markets between 2021 and 2022. Despite being a top exporter, Ivory Coast imported a minimal amount of cocoa beans, primarily from the United Arab Emirates, France, Ghana, and Belgium. Prominent companies like Barry Callebaut played a significant role in exporting cocoa beans from Ivory Coast to the United States in 2023.[8]

Ivory Coast's Cocoa Economy reflects the country's efforts to build a fairer and more sustainable cocoa farming system. Through initiatives like farming schools and reforestation, the nation is addressing past differences and aiming to transform its role in the global chocolate market. UN Deputy Secretary-General Amina Mohammed’s 2022 visit noted the developments in these efforts.[9]

See also

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References

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  1. ^ William Gervase Clarence-Smith, "Cocoa Pioneer Fronts since 1800: The Role of Smallholders, Planters and Merchants," Palgrave Macmillan UK, 1996, [1].
  2. ^ "Ivory Coast country profile". BBC News. 2011-05-04. Retrieved 2024-09-05.
  3. ^ "Ivory Coast authorises 102 companies to export cocoa and coffee in 2022/23". Retrieved 2024-09-05.
  4. ^ Tom Collins, "Ivory Coast battles chocolate companies to improve farmers’ lives," Al Jazeera, 22 December 2022, [2].
  5. ^ Title of the Work: Cocoa's bittersweet supply chain in one visualization, Published by The World Economic Forum and Visual Capitalist, Nov 4, 2020]
  6. ^ Ferdjani, Hannane. "Ivorian cocoa farmers 'barely survive' while chocolate company profits soar". Al Jazeera. Retrieved 2024-09-05.
  7. ^ Jez Fredenburgh, "The ‘invisible’ women at the heart of the chocolate industry," BBC Future, 2023.
  8. ^ The Observatory of Economic Complexity. "Cocoa Beans in Cote d'Ivoire." The Observatory of Economic Complexity.
  9. ^ The original version of this article was written in French by Benoît Gohoun, Communications and Advocacy Officer at the UN Resident Coordinator Office in Côte d'Ivoire. The piece was edited and translated to English by the UN Development Coordination Office (DCO). "Sustainable cocoa farming in Côte d'Ivoire: UN deputy chief notes significant progress and calls for greater international support," UN Sustainable Development Group, 17 May 2022. [3]