What? Abusive child labor in cocoa production?
Child labor and even child slavery on West African cocoa farms were recently uncovered by UNICEF, the US State Department, and the International Labor Organization. This is a major issue for the US chocolate industry because 43% of the world's cocoa comes from the Ivory Coast, while West Africa produces over 70% of the world's crop.
What is causing this?
West Africa cocoa revenues average $30-108 per year per family member, not nearly enough to cover their costs or meet their basic needs. Low cocoa prices are the fault of big companies like M&M/Mars that have control over the world market. For every dollar spent on chocolate, these huge companies get 70 cents while farmers get only 5 cents.
How does this relate to the USA?
America is the world's largest chocolate consumer. In 2002, we ate 3.4 billion pounds and spent $13.1 billion on it. We could be spending this on Fair Trade.
The industry says that child slavery is rare, and that child labor just a part of West African culture.
The industry says things like this to cover up their role in causing child labor and lack of access to education, and to make it seem like other cultures are choosing conditions like this that are in fact forced upon them. West African producers want their children to go to school and be well-treated just as Americans do, but they cannot choose these things because of the poverty inflicted by major corporations like M&M/Mars.
Isn't the industry working on this problem?
The US chocolate industry has a "Protocol" to end child slavery, but it doesn't guarantee the stable and sufficient cocoa prices that producers need to cover their labor costs and basic needs. It also places the blame for child slavery on producers rather than admitting that the chocolate industry is keeping farmers poor and thus dependent on child labor. The "Protocol" was developed in 2001 and has a deadline of 2005, but no progress has been made yet.
Why are you targeting M&M/Mars
M&M/Mars (Masterfoods USA) is the world's largest chocolate company, earns more than $16 billion annually, and its three owners are each worth $10.4 billion. Their largest sales are to children - just like the child laborers on cocoa farms. Clearly, this company has the responsibility to offer Fair Trade Certified chocolate, and lead the industry as a whole towards supporting Fair Trade.
What is the solution?
Fair Trade, an international third-party monitoring and certification system that guarantees a living wage and prohibits abusive labor. Fair Trade producers can provide for their families with dignity and send their kids to school instead of needing them to work.
The industry has incorrectly stated that a certification system for cocoa is "unprecedented," though Fair Trade indeed has a long history and involves over 800,000 producers in 48 countries. Fair Trade far surpasses the industry's Protocol and other development projects because it is an already in place, covers every aspect of the industry Protocol, reaches more farmers than any of the industry's projects, and ensures that producers will always be self-sufficient instead of needing corporate charity.
How do companies get Fair Trade cocoa?
Fair Trade cocoa is produced by democratic cooperatives representing more than 42,000 small-scale farmers from 9 countries in West Africa and Latin America. TransFair USA connects companies with Fair Trade cooperatives.
In 2000, Fair Trade cocoa co-ops produced 89 million pounds of cocoa, but sold only 3 million pounds at Fair Trade prices. US chocolate companies could buy this Fair Trade cocoa right now if they would only trade some of their profits for struggling producers.
Is it hard for producers to get into the Fair Trade system?
The Fair Trade cocoa system involves democratic cooperatives of small-scale farmers. (The Fair Trade Certified system for bananas and tea allows plantations.) More than 90% of the world's cocoa is grown on small family farms. With some basic start-up help,these producers could easily form cooperatives and join the Fair Trade system.
What kind of demand is there for Fair Trade?
Global Exchange formally asked M&M/Mars to offer Fair Trade Certified chocolate two years ago, and more than 200 other organizations endorsed this request. Through Global Exchange's campaign efforts alone, M&M/Mars has received an outpouring of requests for Fair Trade chocolate -- including over 1,000 letters and cards from schoolchildren, and more than 4,500 faxes and countless e-mails and phone calls from concerned consumers.
What is the Fair Trade chocolate/cocoa market like in the US
Since Fair Trade Certified chocolate and cocoa came to the USA in 2002, company participation, retail distribution, and sales have all increased steadily. Internationally, sales increase by about 25% each year. Sales in the USA are less than 1% of the international Fair Trade market, so there is lots of room for growth. Fair Trade coffee has really taken off since it was introduced in 1999, and Fair Trade chocolate/cocoa will follow this trend as we educate more people about it.
Is Fair Trade more expensive?
M&M/Mars has enough revenue to use Fair Trade cocoa without needing to raise prices or cut worker salaries in the USA.