The fifth edition of the Chocolate Scorecard, released this week, ranks chocolate companies so consumers can use their spending power to contribute to positive change in the global cocoa trade.
Macquarie Business School Professor John Dumay, who is lead academic on the report produced by charity Be Slavery Free, says consumers can play a small but significant role in helping lift the farmgate price paid to cocoa growers and reduce child labour by choosing to buy more responsible brands.
"Some companies have better practices than others at supporting things like the living income for West African farmers and preventing child labour, and Chocolate Scorecard ranks these to helps consumers make purchasing decisions that prompt companies to improve,” says Professor Dumay.
"It comes down to personal finances, but if you can afford to support companies ranked higher on the Chocolate Scorecard we encourage people to do so."
High cocoa prices not helping farmers
Professor Dumay says while the price of cocoa is at a record high of more than $USD8000/tonne – which might be higher if not for inflation and current cost-of-living pressures – grassroots cocoa producers through West Africa are not reaping the rewards.
"The price of cocoa has tripled in the past 18 months but farmers in Ghana and the Ivory Coast are not getting the money, farmers receive a farmgate price which is considerably lower than world prices," says Professor Dumay.
"These are big countries, similar in size to Germany, so it could be 600 or 700 kilometres from the plantation to where it has to go to reach market, and there are lots of middlemen working in those production and distribution supply chains.
"There is also currently a deficit in cocoa production, El Nino weather conditions and a mealybug infestation in the Ivory Coast and Ghana which are all severely impacting supply, with a 374,000-tonne deficit predicted for 2024.
"This means the farmer is further disadvantaged. Not only are they getting a lower farmgate price but they are now working to fill forward contracts which can't be satisfied because of reduced crop sizes, meaning they can't make a living."
The Chocolate Scorecard fifth edition – released on March 20, 2024 – reveals 83 per cent of the chocolate businesses providing data for the report recognise a living income is “a basic human right" but only seven per cent of the companies listed are "paying 100 per cent of their farmers a living income price".
The good eggs
The latest edition of the Chocolate Scorecard features 63 companies, including nine smaller brands producing less than 1000 tonnes with 38 medium and larger businesses, and covers more than 95 per cent of the cocoa supply chain.
Original Beans, Beyond Good and Ritter Sport take the Good Eggs title in 2024, while Kruger and Tesco are named Bad Eggs for showing a lack of transparency by making claims without publicly verifying the declarations.
Chocolatemakers takes the Innovation Award – reducing its carbon footprint by sailing the cocoa from Ecuador to Amsterdam, then distributing its products through Europe by pushbike. Tony’s Chocolonely claims the Achievement Award after rating a top green overall score for the past five years.
Naming and 'faming'
Professor Dumay says the Chocolate Scorecard's purpose was to encourage positive change, and rather than naming and shaming, the report looks to “name and fame”.
"The important thing to remember is we are not criticising companies, we are saying this is the playing field and this is where companies sit on that playing field. Every company that's listed in the scorecard agreed to be included," Professor Dumay says.
"The companies we're working with use this to judge their performance, then seek assistance to improve in the areas where they're not so strong. We are helping them by providing the resources to do this.
"Even if a company ends up at the bottom of the list we are thankful for their inclusion and they should be congratulated for participating."
This year's winners:
1. Tony’s Chocolonely – the Achievement Award for being a leader and attaining green credentials five years in a row
2. Ritter – for overall best practices for a large chocolate company
3. Original Beans and Beyond Good - tied for best overall practices for a small chocolate company
4. Chocolate Makers for the Innovation Award
5. Lidl and Pladis - joint winners of the Gender Award for innovation in supporting females in cocoa growing
John Dumay is a Professor in the Department of Accounting and Corporate Governance in the Macquarie Business School.
