In late September, the Payson Center at Tulane University released its third annual oversight report on efforts to eliminate the worst forms of child labor (WFCL) in the cocoa sectors of Ghana and the Côte d’Ivoire. Overall, the report takes a positive point of view. But hidden in various parts of the report remain serious questions as to the efficacy of the chocolate industry’s engagement with the Harkin Engel Protocol process. Continue reading “A Child Labor Update”
Concentration of the Chocolate Industry Continues
Several news outlets reported today that ADM, one of the largest commodity brokers in the world, has acquired Germany’s Schokinag, one of the largest European makers of chocolate and cocoa powder. “This acquisition will be an excellent fit for our business as we continue to enhance our global presence across the entire cocoa and chocolate value chain,” said ADM’s Cocoa and Milling vice president Bemis. Continue reading “Concentration of the Chocolate Industry Continues”
Child Labor Update
Last week, the Payson Center of Tulane University published its second annual report evaluating public and private initiatives to combat the worst forms of child labor in the cocoa sectors of Ghana and the Côte d’Ivoire. These reports are produced under a contract with the U.S. Department of Labor.
The report concludes that
- Children in the rural areas continue working in cocoa production and in other agricultural and economic activities, some as young as 5 years of age.
- A large percentage of the children working in cocoa report involvement in hazardous work and injuries while performing agricultural tasks, including the use of tools and equipment, carrying heavy loads, and exposure to environmental hazards. Some children are also involved in spraying pesticides and in the application of other chemicals. Some of these activities have been classified worst forms of child labor by the Governments of Côte d’Ivoire and Ghana.
- There is little evidence of the unconditional worst forms of child labor in the cocoa sector – child trafficking, forced labor, etc. – as a percentage of the population. However, there is evidence of child trafficking to Côte d’Ivoire from neighboring countries.
- Of note in the Tulane’s population-based survey of Nov/Dec 2007 was that the vast majority of children in the cocoa-growing areas – 95% in Ghana and 98% in Côte d’Ivoire (weighted data) – do not report exposure to any intervention projects in support of children in the rural areas. While these children may still benefit from interventions indirectly and without their knowledge, these percentages are low enough to merit further field validation (Second Annual Report, page 10).
Shrinking Foods
A couple of weeks ago, I wrote here that Hershey’s price increases might be accompanied by another strategy to pass higher prices on to consumers–decreasing the weight of the product. And, lo and behold, here’s the confirmation. Yesterday, the International Herald Tribune published an article highlighting the shrinking food weights for a number of manufacturers. Skippy Peanut butter jars will contain 16.3oz rather than 18oz and forget the half gallon cartons of orange juice, they’ll contain only 89 rather than 96 fl. oz. As for chocolate, Mars will decrease the volume in some of its candies and others will probably follow.
But then we have already seen the incredibly shrinking package in the chocolate market for some time. When I grew up in Germany, a chocolate bar contained 100 grams of chocolate. For me, that’s a normal size. With the emergence of all the fancy gourmet chocolates over the past decade, however, bar sizes have decreased even before the recent price increases. I guess one way to state the exclusivity of a chocolate bar is to make it small. I wonder what it is in our subconscious that associates small with exclusive rather than rip-off.
Côte d’Ivoire on track to meet July 1 deadline?
Today, Reuters South Africa reports that the Côte d’Ivoire is set to meet the July 1 deadline to certify that its cocoa beans are produced without the worst forms of child labor. Behind the headlines, though, things look a little bleaker. Congressman Engel is quoted in an AFP article that only 50% of the cocoa producing regions will eliminate the worst forms of child labor in their production of cocoa. I doubt even that will be achieved. The Payson Institute report I mentioned earlier shows that the chocolate industry does not have in place anything that looks like certification scheme. It looks like all the players will simply declare compliance on July 1. There will be some remarks about the difficulty of assessing the magnitude of the problem. And after that, everybody will go back to business as usual. The farmers, of course, will be no better off.
March cocoa futures NY: $2151
Côte d’Ivoire Cocoa Spot Price: $2463
