IMPORTANT DEFINITIONS Cacao: The tree and the bean from which cocoa is extracted.
Cocoa: a substance made from the fermented, dried and processed seed/bean of the cacao tree. With the addition of ingredients like fats and sugar, cocoa is the primary ingredient of chocolate
Two-thirds of the world's cocoa is produced in West African countries like the Ivory Coast and Ghana. For 90% of farmers in these two countries, cocoa is their main source of money. In over 30 countries, more than 14 million people earn their money/living off of farming cocoa. But they can barely survive on the money they are receiving for their work.
For every $1 spent on cocoa... 7 cents goes to cocoa farmers. 7 cents goes to a tax from the exporting country. 41 cents goes to the chocolate manufacturer. 28 cents goes to the chocolate retailers. 17 cents goes to government taxes. This all equals up to 100 cents.
Cocoa is the world's third largest traded food ingredient. Average household incomes for cocoa farmers in West Africa were between $44 and $158 per year.
Usually, the farmers children have to work on the farms. This means they can not attend school (usually they can't afford it anyway) and it puts them into dangerous work environments. Approximately, more than a quarter of a million children have no choice but to work in hazardous conditions on cocoa farms in West Africa.
Children have to use dangerous tools like machetes and apply hazardous pesticides. Up to 60% of children working on these farms in the Ivory Coast have never been to school.
The world's six large chocolate companies control 80% of the cocoa market. The companies ensure that the farmers get a low profit so they can keep the high profits for themselves.
The main importers of Conventionally Traded Cocoa are Europe and the United States. The main importers of Fair Trade Cocoa are United Kingdom, United States, France, Germany and the Netherlands.
The conventionally traded price of cocoa in 2008 was $1400/tonne. The fair trade price of cocoa in 2008 was $1600/tonne, fair trade premium: $200/tonne and organic premium $150/tonne.
Hazards for children working on the farms are: injuries, poisoning and long term health problems for chemicals, snake and insect bites, exhaustion, skin cancer, sexual abuse and stress.
Fair Trade farmers receive enough money to cover the costs of sustainable production. They also receive a fair trade premium to invest in initiatives in their communities.
Some of the Fair Trade Standards are: Producers are small family farms. No use of dangerous agrochemicals. No forced labour of any kind, including child labour, is permitted. (there are many more.)
Cocoa Facts: Chocolate is made from fat, sugar and cocoa. Canada is the world's 14th largest consumer of chocolate. Many cocoa farmers have never tasted chocolate. More than 15,000 children have been sold into slavery to work on cocoa, cotton and coffee farms.