The Chocolate Industry Exposed: Child Labor, Trafficking and Fair Trade Mislabeling

Our favorite chocolate brands look sweet, but what lies beneath the wrapper?

With Valentine’s Day behind us and Easter just a few weeks away, I thought there was no better time to write a post on the chocolate industry than now, when ‘chocolate season’ seems to be in full bloom. Even though it may seem that I am taking somewhat of a detour from my current series on fashion by writing about all things cocoa, the fact is, the chocolate and textile industries share much in common. Both produce things that give people around the world pleasure, and yet that pleasure often comes at a cost. My previous posts on fashion, conflict minerals and technology have attempted to reveal the obstacles in maintaining transparency across our global supply chains, and chocolate is no exception here. If glamor is a facade that often hides the exploitation behind the fashion industry, then the sweetness of chocolate found within the brightly foiled wrappers can be an easy distraction from the gritty, sad reality of how that chocolate is made. The ultimate irony is that an industry that especially caters to children’s Willy Wonka fantasies too often relies on the trafficking of children to make it.

A child labors in the cocoa fields (photo courtesy of ethical living).

Here are the hard facts. Two million cocoa farms across West Africa produce around 73 percent of the world’s four million tons of cocoa. Exports from the Cote d’Ivoire account for 10 percent of its GDP, bringing in $2.3 billion to the region annually. This lucrative business relies on more than 1.8 million children, most of whom work without pay and in hazardous conditions, which include exposure to harmful pesticides and forced use of machetes in their work. Between 200,000 and 800,000 children under the age of 18 are working under the ‘worst forms of child labor,’ and it is estimated that over 10,000 are trafficked annually in West Africa alone.

The child labor situation in the cocoa industry is tragic, and yet too little has been done to institute the needed regulations to ensure that this exploitation does not occur. In 2001, a few members of U.S. Congress proposed a federal system to certify and label chocolate products as slave free: right on the wrapper, next to the calories and ingredient list where it sometimes says “may contain peanuts,” it would read “may contain child labor.” This proposal—the Harkin-Engel Accord—passed the House of Representatives, but lost by a razor-thin margin in the Senate when chocolate manufacturing giants like Hershey, Mars, Nestle and agricultural giant Archer Daniels Midland threw their money into a massive lobbying effort.

Thanks to the efforts of Senator Harkin and many others committed to see a change, a ‘voluntary protocol’ was nonetheless negotiated. That meant cocoa companies could try and stop child labor, if they wanted to. It set goals for ending abusive and forced child labor on cocoa farms by 2005. These terms have still not been implemented, due to a lack of certification standards, the Ivorian Civil War in which ‘blood chocolate,’ along with conflict minerals, was making money for the militants, and a lack of political will among cocoa corporations. I mean, they didn’t see fit to end child labor before—why was a law with no teeth going to change their behavior now? Every few years, the law gets reviewed, the lobby pushes back, and a new deadline for implementation is set. Meanwhile, kids are enslaved in the cocoa fields. Farmers dream of making as much as $1 a day—a dream as far off as tasting a chocolate bar most never have, since it’s too expensive. At the same time, kids in the West buy cheap chocolate, and dollars pile into coffers of the same giant companies that continue to bat down this legislation.

The Harkin-Engel Protocol addressed again, in 2010. A commitment or wish list? (photo courtesy of candyusa.com).

What do we have to show for these efforts, a decade later? Miki Mistrati and U. Roberto Romano wanted to find out, and launched an undercover investigation into the cocoa industry, which they revealed in their startling, award-winning documentary, The Dark Side of Chocolate. The film reveals that, contrary to the chocolate industry’s claims, child trafficking is still very much central to the production of cocoa in Western Africa, especially the Ivory Coast. Many of these children come from the poorest families in the region, and are tricked into thinking they will be paid for their work so that they can help support their families. Children as young as eight years old travel miles from countries like Burkina Faso or Mali, and are forced to labor in hazardous conditions from sunrise to sunset and live in small shacks in the plantations.

Who is to blame for 8-year old Hussein working on a cocoa farm? Is it corporations, farmers, suppliers, consumers or governments? Or is everyone to blame? (photo courtesy of Jessica Dimmock for CNNMoney).

But who is to blame here exactly? Much like the fashion industry, the transnational nature of the cocoa industry makes it difficult to ‘pin the blame’ on any particular person, country, or institution. The chocolate companies point fingers at farmers, who in turn have argued that what they’re paid for cocoa is too little for them to pay adult wages—so they hire cheap children instead—or worse. The Ivorian government has similarly accused chocolate companies of not paying farmers enough for their produce since farmers must sell their beans to middlemen at dramatically low prices, even though the prices for cocoa in the commodities market have risen. In response, chocolate companies have countered that it is too complex to track where their cocoa beans come from, especially since global commodities exchanges might mix Ivorian cocoa with other cocoa. The suppliers in turn argue that they can’t be held responsible because they don’t control the farms. Meanwhile, consumers claim that it is difficult to know where their chocolate was produced given the distance between consumers and producers.

Raise the Bar, Hershey! campaign is revealing the hidden costs of their sweet chocolate.

So what can be done? Mistrati recently gave an interview on the issues of transparency revealed in The Dark Side of Chocolate, and he believes that if major manufacturers who are located in the Ivory Coast are truly concerned about where their cocoa comes from, then they should buy the fields and control the cocoa directly. He also doesn’t think companies are spending enough money on projects fighting child slavery in Africa relative to the revenue they make. For example, take Hershey, which owns a whopping 42 percent of the U.S. market for cocoa, making it the country’s largest purchaser of West African chocolate. Although the company is investing in a $4 million, five year program that helps to train Western African farmers on good farming and labor practices, scorecards recently released by Not for Profit Uniting Church Across Australia and the International Labor Rights Forum revealed Hershey is lagging far behind retailers like Mars and Nestle in eliminating child labor in its supply chain. Hershey has since announced its plan to produce 100 percent certified cocoa for all of its products by 2020, which, if met, could have a profound effect on an industry in which only five percent of its cocoa volume is certified.

Students protest in Times Square in front of the Hershey store (photo courtesy of United Students for Fair Trade).

Still, as I have written before, there is always a potential that companies will resort to greenwashing when they are not legally bound to follow through with their promises, and Hershey thus far has been somewhat vague on what their certification plan would entail. In fact, Whole Foods Markets Inc. just recently pulled Hershey’s ‘artisan’ chocolate brands Scharffen Berger and Dagoba off the shelves after activists in International Labor Rights Forum, Green America, and the Organic Consumers Association raised concerns about the company’s lack of transparency in their social accountability programs. One of Hershey’s largest shareholders has filed a suit against the company for its alleged use of child labor. The ‘Raise the Bar Hershey‘ campaign, which involves elementary school children as its core base, aims to pressure the company to ethically source 100% of its cocoa by its proposed deadline of 2020. Many children have given up eating chocolate from Hershey’s until the brand makes the full switch. One can only hope that a company built by Quakers on a foundation of educating disadvantaged children would once again become an industry leader.

A young boy dries out cocoa beans in the Ivory Coast. Would more Fair Trade certification make it possible for him to go to school? (photo courtesy of IRLF).

The Hershey example outlined above clearly demonstrates why companies must operationalize according to a ‘logic of distance’ between producer and consumer as a way to maximize their profits. This logic assumes that the further removed a consumer is from the conditions under which a producer labors, the less likely they will be to have awareness and ultimately, motivation to protest. This is perhaps why Mistrati believes that change in cocoa production methods will be more likely to happen when consumers demand change and pressure chocolate manufactures to increase their purchases of Fair Trade cocoa. The standards for the Fair Trade certification mark prohibit child labor according to the ILO conventions, and qualified auditors are supposed to routinely check producer organizations to ensure that these standards are being rigorously met. By working to strengthen the position of farmers and workers in international supply chains so that they do not have to rely on child labor, a convincing argument can be made for the elimination of child trafficking by creating a greater demand for Fair Trade chocolate. And when children are not forced to work the argument is that they will have greater opportunities to go to school, which is one of the most effective ways to break the cycle of poverty that fuels child trafficking in the first place.

However, sometimes transparency in labeling for even movements we trust can be suspect. While Fair Trade advocates have always touted transparency throughout the Fair Trade supply chain as central to its mission, there is a growing concern that as more businesses incorporate the Fair Trade label into their products in an effort to gain new consumers, the high bar for accountability might become filtered. The Fair World Project decided to go to various stores to investigate how transparent various chocolate brands were about their labeling. They were shocked to find out that two “privately labeled chocolate bars,” one of which was from Trader Joe’s and the other from Whole Foods, claimed to be Fair Trade when in fact, only a few of their ingredients were certified Fair Trade. So if Whole Foods’ brand chocolate bar has fair trade cocoa butter, how does the consumer know that the sugar and vanilla included in the bar was not made with exploited labor? Trader Joe’s is even more secretive about its Fair Trade ingredients, with none being identified in their ingredient list (this lack of transparency on sourcing and labor practices is not just limited to chocolate at the cheap retailer, as this article points out).

Misleading labels: This Trader Joe’s bar is cheaper than other Fair Trade chocolate bars, but how do we know the ingredients on this bar weren’t made with exploitative labor when the labeling isn’t transparent?

This is egregious not just because it allows these companies to sell a Fair Trade product without being fully transparent about their supply chains, but also because these private brands are cheaper than true Fair Trade companies like Alter Eco, Divine, and Equal Exchange, all of which invest in fair prices and premiums to ensure that more money is going directly to cooperatives controlled by farmers. Their bars clearly indicate which ingredients are Fair Trade, and furthermore, they include relevant information and pictures about the co-ops they work with in the inserts of their packaging and on their websites. Still, consumers have become so conditioned to trust the label, they might buy a cheaper product that has fewer Fair Trade ingredients (and yes, I was one of those consumers. I’m not exactly a fan of being lied to, so hence. this. post.).

What is so strange is that the Swiss-based Institute for Marketecology (IMO), a certifier for companies using the ‘Fair for Life’ label, requires that a product be 80% fair trade by weight in order to display the Fair for Life logo on the front. Furthermore, neither of these bars indicates the audited company responsible for manufacturing the bar, a key component of IMO’s Fair for Life program. So, what explains these misleading labels?

Certifier IMO failed to intervene when Theo, a Fair Trade certified company, did not uphold its Northern workplace standards.

Even more difficult to explain is the recent lapse in Fair Trade workplace standards that was revealed a few weeks ago when the International Labor Rights Forum (ILRF) released a report titled Aiding and Abetting. The report documents how certifier IMO neglected to uphold its commitment to international labor standards promoted by its Fair for Life label when it failed to intervene on behalf of workers at Theo Chocolate who were attempting to organize at their North American factory. In fact, IMO then proceeded to initiate new labor standards that included recommendations for employer-hired consultants who discourage union organizing to be included in a list provided to its workers. While one can argue that this violation was a failure to uphold their Northern workplace standards, not necessarily their ‘Fair Trade’ standards, we should still question, if the certification system wasn’t working in North America, whether it would work for producers in the Global south.

The question is then, how do we make the system financially accountable to the people it is supposed to help, namely both workers and consumers? According to Rachel Taber, who worked at Theo Chocolate for three and a half years as a tour guide, one of the central problems lies with the fact that auditors are being paid by the management of companies like Theo, thus setting up a potential conflict of interest. This is why the ILRF is recommending that complaints by workers be reviewed not by company-associated auditors, but by an independent “International Fair Trade Board of Appeal.” As Judy Gearhart, Executive director of ILRF noted in an interview with me:

“We definitely need more accountability and transparency in our system. And we need to acknowledge that not all of these systems are treated equally. Fair Trade International, which is based in Europe, can partly attribute its more rigorous Fair Trade standards to more robust support by the labor movement there. And that makes a big difference. While we feel that Fair Trade has the right social justice commitments, we need to work harder to ensure that farmers have a strong share in these companies.”

Yes. Because ultimately, farmers and producers, not labels, are at the heart of this movement. There are some wonderful company leaders who are indeed staying true to their Fair Trade ethics, in that they are constantly striving for transparency and are committed to giving their workers a platform to voice their concerns. They’re reaping economic benefit on a more equitable level and taking unique approaches to do it.

Children of the families of the Dominican cocoa co-operative CONACADO, a partner of Equal Exchange, at their elementary school.

Take for example, Equal Exchange, the oldest Fair Trade coffee company in the United States. Of the nine seats on their board, six are reserved for non-management worker-owners, and all nine are nominated and elected by the workers themselves. They share worker testimonials on their online site, and as Rocio Motato of the Columbian cooperative ASPROCAFE put it, “We have not only a commercial relationship through the coffee, but more importantly, a very human relationship.” Their commitment to environmental sustainability and organic food practices is evident in the quality of their products—the chocolate bars sourced from purely made ingredients are some of my favorites in the business (and I know my chocolate!).

Farmers in Madagascar gather their beans after sun-drying. Madecasse works with cooperatives to keep the profit in the region so that farmers do not have to rely on cheap child labor (photo courtesy of madecasse.com).

There are other notable models that should also be highlighted. Divine is a Fair Trade company in which farmers own 45% and share the profits, and there is a special focus on women leadership. Alter Eco Foods works with small-scale cooperatives in countries that include Bolivia, Peru, and Thailand, and is an interesting company because its environmental commitments include organic agriculture training for farmers and also partnering many of their cooperatives with reforestation projects. And then there are other chocolate producers that are not certified Fair Trade, but are making quality chocolate that benefits local communities. For example, the Chuao cooperative in Venezuela sells to high-end chocolatiers, and the farmers organize and distribute money fairly among themselves and make really amazing chocolate that is culturally appropriate to their land-based indigenous background. The Granada Chocolate company makes organic chocolate in Granada using their own cocoa beans, while Madecasse, a chocolate company sourced and manufactured from bean to bar in Madagascar, keeps the profits local.

The certified Fair Trade and non-certified Fair Trade companies highlighted above are all excellent examples of models that work, and provide a compelling rationale for why consumers need to start looking beyond the label to truly transform the system, because the Fair Trade seal, which traditionally used to symbolize rigorous monitoring and transparent labeling, is in danger of being diluted and hijacked. Furthermore, we need to start thinking more deeply about whether we should rely solely on a certification to bridge the gap between producers and consumers. While the Payson Center proposal of an oversight committee on certifiers is a good, easy starting point for where we are now, to create a more accountable workplace, Rachel Taber believes that we can go even further to institute a real system of “checks and balances.” As she told me:

You need a union, a real functioning democratic co-op, a way that workers themselves can communicate directly with consumers in a way that their own words will be heard. I mean really, skyping with interpreters would probably be much cheaper than paying out of country auditors.”

On a related note, NGO-sponsored ‘worker tours’ which include a small panel of workers sharing their personal narratives of laboring within global commodity chains are proving to be a powerful way for producers and activists to build coalitions with schools, congregations and most urgently, unions.

Two Cacao farmers from the cooperative CONACADO speak on tour:

Finally, we need to encourage civic engagements and direct action of consumers and workers together to hold abusive companies responsible and reward companies that have implemented worker and consumer demands on them and are actually following through on their commitments. Organizations like the United Students against Sweatshops (USAS), Coalition of Immokale Workers (CIW), and even the Raise the Bar, Hershey! campaign have given corporations a taste of the power of consumers rising against them.  For example, after learning that Nike had failed to pay $1.54 million in severance pay to over 1,800 workers in Honduras, USAS led several University boycotts of the brand which led to Nike ultimately agreeing to pay the workers the severance that was owed to them. It is clear that the corporate accountability model is capable of working, in that costing companies money gets things done. You might be surprised just how much your voice can make a difference.

USAS organizers, here with BJ&B workers, have had some key victories (photo courtesy of USAS).

Here is the deal. Child trafficking in the cocoa industry is very real, and it is tragic. If we are going to seriously address it, then we need to not just resort to knee-jerk responses such as ‘buy Fair Trade chocolate’ if we don’t even know what that means. Though I want to be clear here, my issue isn’t with the person who buys an Equal Exchange bar over a Hershey bar knowing that the former supports democratic co-ops while the latter is potentially trafficking children to supply their cocoa. We do need to demand more ethically sourced chocolate, and supporting disenfranchised farming communities is a very powerful choice.

Where we get into a problem is when we buy products because we trust the label and we don’t realize that the label might be diluted. Or when we think of ourselves only as consumers and not also as citizens who have the power to organize for system-wide changes, such as the Harkin-Engel accord, or anti-corporate campaigns against cases of abuse. We need to get to know the companies behind the labels to see which ones best represent our values of social justice and transparency, and take cues from organizations we respect, such as the Fair World Project, or a faith-based organization which is active in Fair Trade issues, or any of the ones mentioned above. In the words of Public Enemy, ‘Don’t believe the hype.” In order to better direct the energy of the labor rights movement, we need to think critically, ask questions, and ultimately, refuse to lower the bar for justice.

Update: In late March, Hershey announced that it would commit to 100% Fair Trade cocoa by 2020, and that it would source through certifiers UTZ, Fair Trade USA, and Rainforest Alliance. While this is certainly a step in the right direction, we need to keep in mind that these three certifiers are known for being less rigorous than other Fair Trade certifiers. The Fair World Project’s list of credible Fair Trade certification programs does not include any of these certifiers. Here are links to criticisms of Fair Trade USA,  Rainforest Alliance and UTZ. This demonstrates again, the importance of sustained conversation, and thinking beyond the label!

In late 2012, IMO wrote this letter to the Fair World Project promising that they would remove the Fair for Life logo on the front of their label until they had ensured that they had corrected the Fair Trade ingredients percentage in their chocolate. The Fair World Project confirmed that as of 2014, the private labels are sourcing fair trade sugar.

Trader Joe’s has pulled the Fair for Life logo from their fair trade chocolate, but they are still not indicating who it is that is certifying their chocolate as fair trade, if anyone.

Fair Trade USA has repeatedly been criticized for its labeling policy that lacks transparency and its low percentage of required fair trade ingredients. They have made some changes, such as agreeing to mandate a percentage disclosure and to not exempt milk from calculations of fair trade ingredients. But they are still excluding sugar and vanilla as mandatory in products labeled ‘fair trade.’

In December 2015, a food blogger published a series of posts on DallasFood.org investigating how the Mast Brothers – an “artisanal” chocolate company known for its “bean to bar” production and  commitment to authenticity and transparency – did not always make its chocolate from scratch and is less than transparent about its production sources.  As this Quartz piece noted, the story highlights how a company’s marketing, which in this case included beautiful packaging and bearded, hipster founders, can successfully launch a product of questionable quality into the market and help shape it into a consumer and media darling.

Take Action:

• Want to email companies like Hershey and Nestle, as well as the World Cocoa Foundation, pressuring them to abide by Harkin-Engel? Check out this page where you can also message Tom Harkin and Eliot Engel!
• Get involved in the Hershey, Raise the Bar! Campaign, where you can find petitions and some great resources!
• Check out 10 Campaign’s excellent breakdown of the main issues around child labor in the chocolate industry, and be sure to download their comprehensive but clear “Campaign Briefing Document.”
• Sign this petition initiated by the Food Empowerment Project asking Clif Bar to disclose where they get their cocoa beans.
• The Global Cocoa Project has some great resources for increasing awareness about the realities behind the cocoa industry.
• Looking for more ideas on how to get young people involved? Or how you can raise awareness by hosting your own ‘chocolate party?’ Stop the Traffick can hook you up!
• How about hosting a screening of ‘A Dark Side of Chocolate’ as a way to spread awareness among your peers and larger community? You can purchase it on ILRF’s website. And check out their ‘Take Action’ page.
  
• Concerned about Theo’s recent actions against its workers, and IMO’s failure to uphold Fair Trade standards? Want to hold accountable and improve the parties involved? Sign this petition demanding that IMO’s Fair for Life certification label adopt reforms to protect workers.
• Share this video testimonial of a former Theo worker.
• Share this amazing TEDx talk by ChocoSol founder Michael Sacco, where he discusses the horizontal trade model that emphasizes community supported agriculture, diversity of production, and intercultural relationships. Watch the ChocoSol philosophy here.
• Share this video about chocolate company TCHO‘s work in Costa Rica.
• Screen Nothing Like Chocolate, a documentary by Kum-Kum Bhavnani, which focuses on how Mott Green of the Grenada Chocolate Company and independent cocoa farmer Nelice Stewart produce chocolate sustainably and ethically. You can watch the trailer here.

Good Chocolate List:

• You should take these recommendations with a grain of salt given some of the points made in this post, but this is a good basic list of which chocolate companies source from areas in West Africa where child slavery is the most pervasive, as well as ethical and sustainable alternatives.

Additional Resources:

• Fair World Project has an overview of different Fair Trade certification labels as well as an article that reviews the strengths and weaknesses of claims for different fair trade certifications. They also recently published an excellent article on the Rainforest Alliance label that reveals its misrepresentation as a ‘Fair Trade’ label when it actually lacks fair trade commitments.
• Understand that the International Cocoa Initiative and the World Cocoa Foundation are aid projects initiated by the chocolate industry. The sequel to A Dark Side of Chocolate, named Shady Chocolate, explores these industry efforts.
• Want to learn more about how a worker’s cooperative like Equal Exchange operates? You can watch this video, check out Equal Exchange’s co-op page or contact Rodney North, the ‘Answer Man’ here.
  
• Check out Labor is Not a Commodity, a collaborative blog space for organizations such as International Labor Rights Forum and SweatFree Communities. Some great resources here!
• This video provides a good starting point for the steps you can take to avoid products made with child labor. Check out Green America and Unite Here! for lists of manufacturers of union-made apparel and other goods.
• Want to check out a great blog that explores the commitments of a company ‘behind the label?’ Check out Tout Le Monde!
• Check out Counter Culture Coffee’s Direct Trade certification program for a unique approach to developing direct, sustainable relationships with farmers.

My Related Posts:

• Ethical Fashion: Introduction to an Ongoing Series
• Ethical Fashion: How to Navigate the Industry
• Mamafrica: Sewing Women’s Lives for a Better Future in Conflict-Ridden Congo
• The iPhone 5 and the Latest Technology: Why We Consume at the Expense of Others
• New York Fashion Week-the Fantasy and the Fire