Cocoa Supply Chain Sustainability

I have yet to meet a person who dislikes the taste of chocolate. We buy chocolate when we want to boost our spirit, and we give it to others to show love and affection. If not a vital part of life, it is for many indispensable. The global chocolate industry is worth an estimated $100 billion, and the leading actors are global brands such as Nestlé and Mars – some of the largest firms in the world. This whole industry is dependent on one specific input, namely cocoa beans.

It has been predicted for many years that in 2020, the world cocoa bean production will not meet the demand. By some estimates, there will be a 1 million ton shortfall, or 25 percent of 2012 global output. There are certainly many underlying reasons for this projected shortage, but the main theme is that cocoa bean production is not sustainable for the farmers. Even with a doubling in market price from 2006 to 2015, the farmers have seen little improvement. There is a disconnection among stakeholders in the value chain. To explore this notion further, we have to look to the main source of cocoa beans, namely Western Africa.

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Daniel Espeland is currently working as an intern for the Goodvertising Agency in Copenhagen, and is a recent graduate student from Copenhagen Business School, Denmark and EGADE Business School, Mexico. His dissertation concerned the global cocoa value chain, and how to work towards making it a sustainable industry for all involved stakeholders. The focal point of the thesis was responsible supply chain management. Daniel has also funded a social business that is working with importation of chocolate products from Mexico to Denmark.