Paving the Way for Sustainable Cocoa Value Chains in West Africa

Key challenges in cocoa production

In West Africa, the cocoa sector is vital for smallholder farmers, often serving as their primary source of income and bolstering local economies. Despite its importance, cocoa production faces significant challenges, including deforestation, biodiversity loss, pests, diseases and soil depletion which threaten its financial viability and sustainability. Cacao production is a major driver of deforestation, accounting for over 37% of forest loss in Côte d'Ivoire, affecting protected forest areas and leading to disputes over land use. Climate change further compounds these challenges, as changing weather patterns and unpredictable rainfall make it harder for farmers to maintain stable yields.

Economic inequalities in the cocoa value chain also weigh heavily on farmers. Due to low international cocoa prices and the unequal structure of the global value chain, on average smallholder farmers receive only 6% of the final value of a bar of chocolate. Additional obstacles such as aging plantations, limited access to capital and poor rural infrastructure further worsen their circumstances. On the social front, issues such as child labor, gender disparity and limited access to education remain persistent in some parts of the cocoa supply chain, driven by the economic pressures on smallholder families to meet production targets with limited resources. These social challenges hinder the sector's ability to contribute meaningfully to long-term rural development and poverty reduction.