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What's your impact?

What's your impact?

The global chocolate industry has been growing steadily; since 2011 growth has increased every year until last year. In 2015 the global chocolate confectionery industry revenues reached a record of US$120 billion. Global retail sales values are expected to grow again by 4 percent in 2016 and it is likely that confectionary values will follow the same pattern.

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Chocolate: A growing industry
The global chocolate industry has been growing steadily, since 2011 growth has increased every year until last year. In 2015 the global chocolate confectionery industry revenues reached a record of US$120 billion. Global retail sales values are expected to grow again by 4 percent in 2016 and it is likely that confectionary values will follow the same pattern.

Despite the success of the chocolate market, many cocoa farmers still live below the poverty line
Looking at the economic side of the chocolate industry, one can be optimistic. However, from the revenues obtained with chocolate sales, an estimated 6 percent of value created stays with the cocoa farmer. This means that of the estimated 5 million cocoa farmers worldwide many live in poverty. Furthermore, child labor is still a present issue in several cocoa farming countries despite industry, NGO and government efforts. Low productivity resulting from poor agricultural practices poses a challenge for the future supply of main confectionary companies and means that the younger generations are not attracted to cocoa farming due to low incomes. On the environmental side, protected forest are being cleared for cocoa production.

To address social and environmental concerns companies have been increasing their sustainability efforts
Triggered by the need to create a sustainable supply of cocoa combined with pressure from stakeholders and a company’s own strategic priorities, most chocolate companies have now specific sustainability programs and communicate on their efforts to improve conditions at farmer level. In 2014 KPMG estimated that chocolate companies were investing almost US$1 billion to improve farmer productivity and sustainability.

 

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