Treat with caution: Chocolate prices are soaring as the pressure on cocoa farmers rises
For many of us, advent calendars are an integral part of the build-up to Christmas.
This daily ritual was invented by the Germans in the 1800s. And once confectionary firms began filling those calendars with chocolate in the 1950s, generations of children (and adults) were hooked.
But for the farmers who make these tasty treats possible, the feelgood factor is in short supply.
Smallholders in West Africa produce more than 70 per cent of the world's cocoa. Many operate on plots of less than five hectares - a size smaller than five rugby pitches - and are facing a perfect storm of challenges.
This includes climate unpredictability, pest and disease outbreaks, ageing trees, and illegal mining activity.
The result has been a sharp decline in cocoa output and a corresponding rise in global chocolate prices.
How to reverse rising chocolate prices
Yet there is cause for optimism. Beyond the economic headlines lies a deeper story – one of cultural resilience, indigenous knowledge, and the potential for a more inclusive and sustainable future.
In Ghana, people still hold to the concept of 'sankofa', a belief in looking back to retrieve something valuable from the past to inform the future.
It is a philosophy that offers a pathway to those seeking solutions to the cocoa crisis. Having visited some farms across Ghana, I have seen first-hand how traditional farming methods – once sidelined in favour of agrochemical approaches – are being re-evaluated.
My grandparents, who farmed near Kumasi - capital of the Ashanti region in Ghana - never used synthetic fertilisers or weedkiller. They relied on their animal and farm wastes as sources of organic manure.
Their cocoa trees were intercropped with other food crops, which provided shade for the cocoa trees and food for the household, while replenishing soil nutrients to boost cocoa productivity.
Today, there is a growing movement to embed these methods into local sustainability initiatives.
Anchoring sustainability in tradition
Rather than imposing them as ‘new’ Western-influenced standards, these efforts should emphasise their alignment with traditional practices. The shift to planting shade trees, rearing livestock, and preserving biodiversity is not just ecological, it is cultural.
Across sub-Saharan Africa, the collectivist ethos runs deep. The southern African philosophy of 'ubuntu' – ‘I am because we are’ – captures the spirit of mutual obligation and shared success. In rural cocoa communities, this ethic shapes everything from land allocation to supply chain governance.
My research into cocoa supply chains in Ghana reveals how community-based farming co-operatives have responded to international demands for supply chain traceability and sustainability.
Under pressure from European and North American buyers, these informal groups have reorganised their operations, relying on trusted community leaders – chiefs, elders and chief farmers – to vouch for oral agreements and to mediate disputes.
This informal governance system offers a compelling alternative to rigid written contracts and digital tracking technologies like blockchain, which remain out of reach for many rural farmers.
By leveraging trust and social cohesion, these communities have built resilient supply chains capable of adapting to disruptions – from climate shocks to market volatility.
Yet even as these cultural strengths offer hope, another threat looms: illegal gold mining or 'galamsey'.
Driven by poverty and the lure of quick profits, some farmers have sold parcels of their land to miners or joined the trade themselves. The consequences are devastating for the soil and rivers, while reports of child labour raise alarms about modern slavery.
Here again, indigenous culture may hold the key. The principles of ubuntu – respect, dignity and communal responsibility – could help counter the temptations of short-term gain.
Creating more ethical supply chains
In a context where formal regulation is weak, cultural norms and moral values can serve as powerful deterrents, encouraging farmers to consider the long-term wellbeing of their communities and environment.
For Western buyers and logistics firms, as well as chocolate manufacturers, these insights should prompt reflection.
Supply chain sustainability cannot be achieved through metrics alone. It requires an understanding of the social fabric in which production is embedded.
Recognising the role of traditional leaders, informal governance, and collectivist values can help build more equitable relationships with upstream actors.
It can also enhance supply chain resilience by fostering trust and collaboration rather than competition and control.
In the end, the future of confectionary firms, or any companies with an upstream supply chain for that matter, may depend not just on technology or trade policy, but on a willingness to listen – to the farmers, to the communities, and to the wisdom of the past.
Meanwhile, for the farmers of West Africa, the collectivist ethos of ubuntu could be the model for building a more inclusive future for the communities of the region and securing protection for the local environment. The path forward may begin with looking back.
Further reading:
Involving marginalised communities in sustainability initiatives
Three ways to nudge customers to buy green products
Six ways businesses can maximise social impact
Regulating AI use could stop its rampant energy use
Ghadafi Razak is a Houlden Fellow in the Operations Management Group at Warwick Business School. He teaches Supply Chain Management and Project Management on the Undergraduate portfolio and Customer Value Management on the MSc Management.
Discover more on Business and Sustainability. Receive our Core Insights newsletter via email or LinkedIn.