Traceability Deep Dive Series: Chocolate

| By Hive Team

What is traceability and why does it matter?

Traceability, in a nutshell, means you know where something comes from and how it got to you. It’s a term we use to describe how transparent a company is with their sourcing and supply chains. And it’s a pretty big deal. Because when a supply chain is questionable, it typically means the production process includes poverty, child labor, and deforestation. Some common high risk and poorly regulated supply chains include coffee, tea, sugar, nuts, and yes, chocolate. 

Traceability Deep Dive Series: Chocolate


Do you know where your chocolate comes from?

The truth is, the chocolate industry pays its farmers, quite literally, in pennies. A woman cultivating cacao in West Africa, where the majority of chocolate now grows, can expect to earn 30 cents per day for her crop. Male farmers fare a little better, averaging almost $1. To put these numbers in perspective, the World Bank draws the international poverty line at $1.90, meaning cacao farms operate under severe hardship by even the lowest of standards. 

In the top two cocoa-growing countries alone (Côte d’Ivoire and Ghana), well over two million minors contribute to cacao production. More than half a million of these young laborers are under the age of eleven, and almost 95% toil under exceptionally hazardous conditions: chemical pesticides, backbreaking loads, dangerous tools, exhausting hours, and nighttime shifts. Some children work for their families, but countless more are illegally trafficked, abused, and enslaved in the name of affordable chocolate, a situation that has worsened in recent years. 

In an effort to grow their operations and earn more, farmers also expand their cacao farms into the rainforest, including protected national parks. Côte d’Ivoire, cacao’s global epicenter, has lost 80% of its forests to cocoa production in the past 60 years. Nearly half of that loss occurred in the last few years alone. Farmers also over-rely on pesticides and fertilizers. They use levels far beyond what’s considered safe for human and environmental health. 

The Big Problem

The complex process of making chocolate is one of the biggest hurdles to reforming the process itself. By the time cocoa has been fermented, roasted, crushed, and blended to become chocolate, the origins can get lost. This widespread lack of transparency in chocolate’s global supply chain makes it difficult to enforce higher standards. Making matters more complicated, no company wants to admit that their actions, or inactions, cause human rights abuses. 

The Fair Trade Road to Solutions

“Fair trade” broadly implies that producers are compensated with higher prices. Third-party compliance mechanisms, like certifications, are some of the more reliable steps toward ensuring fairer compensation and ethical practices. The most reputable fair trade certifiers, Fairtrade America and Fair Trade USA, set economic, social, and environmental standards for cocoa and other poorly regulated supply chains, like sugar. Although fair trade premium prices have historically been criticized for falling short of the goal of lifting cocoa farmers out of poverty, the organizations are now working alongside West African governments to ensure farmers’ incomes reach livable levels.

Knowing What to Look For

Fairtrade America

Fairtrade America’s Standards support small producer organizations and agricultural workers in the Global South. The black logo means all of a product’s Fairtrade-eligible ingredients are certified Fairtrade. The white logo means that only specified ingredients are certified Fairtrade. 

Fair Trade USA

Fair Trade USA became an independent organization so they could expand fair trade certification to workers on larger farms, farmers that aren’t part of organized cooperatives, and farmers in the Global North.

Direct Trade

Some chocolate companies have opted to trade directly with cacao farmers and cooperatives. This way, they can bypass traders that may underpay their suppliers or fail to trace the sources of their raw ingredients. Instead of certifications, chocolate companies often publish their own transparency reports and identify their farmer partners and their pay rates. 


Hive’s Partners & Standards

Our chocolate brand partners often pay above fair trade premiums or source directly from cacao cooperatives. Even for products that contain only small amounts of chocolate. And we partner with chocolate companies, like Tony’s Chocolonely, that tirelessly work to improve the livelihoods of farmers and laborers in West Africa.

Our Brands:

  • Alter Eco sources their Fair Trade-certified cocoa, coconut, cane sugar, and vanilla from 24,300 farmers in 8 cooperatives around the world, paying cacao farmers an additional 33% more than the Fair Trade premium. They assist cooperatives with food security, biodiversity, and gender equality. 
  • Tony’s Chocolonely exists to make 100% slave-free chocolate the norm. They purchase cocoa beans directly from Fairtrade-certified cooperatives in Ivory Coast and Ghana. Not only does Tony’s pay producers an extra premium above the Fairtrade price, they also commit to working with farmers for a minimum of five years to ensure the long-term success and good practices of their partner farms. 
  • Taza created the chocolate industry's first third-party certified Direct Trade cacao sourcing program. They pay their organic farmers well above the market price for their cocoa. As part of their direct trade sourcing principles, they also visit their cooperative partners in Ghana, Haiti, and the Dominican Republic at least once a year. 
  • Unreal uses exclusively Fair Trade-certified cocoa and sugar, as well as RSPO-certified palm oil, for their chocolate candies. 
  • Equal Exchange’s cocoa is sourced from Fair Trade, organic smallholder farmer co-operatives in the Dominican Republic, Panama, Ecuador and Peru, and their sugar is fairly traded from a co-op in Paraguay. The business is also one of the largest democratic worker-owned cooperatives in the U.S., giving all of its members an equal stake in the business. 
  • Cocoa Santé uses an Equal Partner Direct Buying Program to purchase their ingredients directly from the farm cooperatives in the Dominican Republic and South America.  
  • 88 Acres purchases the organic, fair trade chocolate used in their seed butters and bars from a female-led co-op in Peru. 
  • The GFB incorporates fair trade, organic chocolate into their gluten-free bites, which are made by employees who also earn at least 20% above living wages. 
  • Banner Road intentionally uses chocolate from Askinosie Chocolate for their granola. The cocoa is 100% traceable and fairly procured, and Askinosie is a small business from Missouri.

Here’s one last simple and free way to support ethical chocolate. Sign Tony Chocolonely’s Petition for 100% Responsibility, which aims to improve the enforcement of anti-slavery laws in the U.S., the U.K, and E.U. 


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