Green
Cocoa: A Bittersweet Supply Chain
Click to view a larger version of this infographic
Cocoa: A Bittersweet Supply Chain
From bean to bar, the cocoa supply chain is a bittersweet one. While the end product is something most of us enjoy, this also comes with a human cost.
Based on how much cocoa comes from West Africa, it’s likely that most of the chocolates we eat have a little bit of Cote d’Ivoire and Ghana in them. The $130B chocolate industry relies on cocoa farming for supply of chocolate’s key ingredient. Yet, many cocoa farmers make less than $1/day.
The above graphic maps the major trade flows of cocoa and allows us to dive deeper into its global supply chain.
From Bean to Bar: Stages in the Cocoa Supply Chain
Cocoa beans go through a number of stages before being used in chocolate products.
- Harvesting, Fermenting, and Drying
First, farmers harvest cocoa beans from pods on cacao plants. Next, they are fermented in heaps and covered with banana leaves. Farmers then dry and package the cocoa beans for domestic transportation. - Domestic Transportation, Cleaning, and Exporting
Domestic transporters carry packaged cocoa beans to either cleaning warehouses or processing factories. Cocoa beans are cleaned and prepared for exports to the chocolate production hubs of the world. - Processing and Chocolate Production
Processing companies winnow, roast, and grind cocoa beans and then convert them into cocoa liquor, cocoa butter, or cocoa cakes—which are mixed with other ingredients like sugar and milk to produce chocolate products.
Cocoa farming and trade are at the roots of the chocolate industry, and the consistent supply of cocoa plays a critical role in providing us with reasonably-priced chocolate.
So where exactly does all this cocoa come from?
The Key Nations in Cocoa’s Global Supply Chain
Growing cocoa has specific temperature, water, and humidity requirements. As a result, the equatorial regions of Africa, Central and South America, and Asia are optimal for cocoa farming.
These regions host the biggest cocoa exporters by value.
Rank (2019) | Exporting Country | Value (US$, millions) |
---|---|---|
1 | Côte d’Ivoire 🇨🇮 | $3,575 |
2 | Ghana 🇬🇭 | $1,851 |
3 | Cameroon 🇨🇲 | $680 |
4 | Ecuador 🇪🇨 | $657 |
5 | Belgium 🇧🇪 | $526 |
Côte d’Ivoire and Ghana are responsible for 70% of global cocoa production, and cocoa exports play a huge role in their economies. Although the majority of exporters come from equatorial regions, Belgium stands out in fifth place.
On the other hand, most of the top importers are in Europe—the Netherlands and Germany being the top two.
Rank (2019) | Importing Country | Value (US$, millions) |
---|---|---|
1 | Netherlands 🇳🇱 | $2,283 |
2 | Germany 🇩🇪 | $1,182 |
3 | U.S. 🇺🇸 | $931 |
4 | Malaysia 🇲🇾 | $826 |
5 | Belgium 🇧🇪 | $719 |
In third place, the U.S. primarily sources its cocoa from Côte d’Ivoire, Ghana, and Ecuador. Mars, Hershey, Cargill, and Blommer—some of the world’s biggest chocolate manufacturers and processors—are headquartered in the U.S.
Finally, it comes as no surprise that the biggest importers of cocoa beans are among the biggest chocolate exporters.
Rank (2019) | Country | Value of Chocolate Exports (US$, millions) |
---|---|---|
1 | Germany 🇩🇪 | $4,924 |
2 | Belgium 🇧🇪 | $3,143 |
3 | Italy 🇮🇹 | $2,100 |
4 | Netherlands 🇳🇱 | $1,992 |
5 | Poland 🇵🇱 | $1,834 |
Not only is the Netherlands the biggest importer of beans, but it’s also the biggest processor—grinding 600,000 tons annually—and the fourth largest exporter of chocolate products.
Belgium is another key nation in the supply chain, importing cocoa beans from producing countries and exporting them across Europe. It’s also home to the world’s largest chocolate factory, supporting its annual chocolate exports worth $3.1 billion.
Breaking Down the Cocoa Supply Chain: Who Gets What
Without farmers, both the cocoa and chocolate industries are likely to suffer from shortages, with domino effects on higher overall costs. Yet, they have little ability to influence prices at present.
Farmers are among the lowest earners from a tonne of sold cocoa—accounting for just 6.6% of the value of the final sale.
Low incomes also translate into numerous other issues associated with cocoa farming.
The Bitter Side of Cocoa Farming
The World Bank has established the threshold for extreme poverty at $1.90/day. Cocoa farmers in Ghana make $1/day, while those in Côte d’Ivoire make around $0.78/day—both significantly below the extreme poverty line.
Farmers are often unable to bear the costs of cocoa farming as a result of low incomes. In turn, they employ children, who miss out on education, are exposed to hazardous working conditions, and get paid little or no wages.
Country | Cocoa Farmers Making $1/day or less | Children in Cocoa Agriculture |
---|---|---|
Côte d’Ivoire 🇨🇮 | 600,000 | 891,500 |
Ghana 🇬🇭 | 800,000 | 708,400 |
To make matters worse, cocoa farming is primarily responsible for deforestation and illegal farming in Côte d’Ivoire and Ghana—adding environmental issues to the mix.
These interconnected problems call for action, so what is being done to fight them?
Combating Cocoa’s Concerns
Mars, Nestlé, and Hershey—some of the world’s biggest chocolate manufacturers—have made several pledges to eradicate child labor in cocoa farming over the last two decades, but haven’t reached their targets.
In addition, organizations such as UTZ Certified, Rainforest Alliance, and Fairtrade are working to increase traceability in the supply chain by selling ‘certified cocoa’, sourced from farms that prohibit child labor.
More recently, Côte d’Ivoire and Ghana announced a fixed premium of US$400/tonne on cocoa futures, aiming to improve farmer livelihoods by creating a union for cocoa, also known colloquially as the “COPEC” for the industry.
While these initiatives have had some positive impacts, more still needs to be done to successfully eradicate large-scale child labor and poverty of those involved in cocoa’s bittersweet supply chain.
Agriculture
Fertilizer: Why it’s More Important than You Think
Fertilizer usage dates back to as early as 6,000 to 2,400 BC and remains just as crucial for crop production today.

Fertilizer: Why It’s More Important Than You think
The global population is expected to reach nearly 10 billion people by 2050. So, in order to feed our growing world sustainably, increased crop production is essential.
Over recent decades, farmers have been able to more than double their production of crops thanks to fertilizers and the vital nutrients they contain.
When crops are harvested, the essential nutrients are taken away with them to the dining table, resulting in the depletion of these nutrients in the soil. To replenish these nutrients, fertilizers are needed, and the cycle continues.
The above infographic by Brazil Potash shows the role that each macronutrient plays in growing healthy, high-yielding crops.
Food for Growth
Nitrogen, phosphorus, and potassium (NPK) are three primary macronutrients that are the building blocks of the global fertilizer industry. Each plays a key role in plant nutrition and promoting crop growth with higher yields.
Let’s take a look at how each macronutrient affects plant growth.
Nutrient | Why it’s needed? | What does it do? | What happens without it? |
---|---|---|---|
Nitrogen (N) | Needed for the formation of all plant and animal proteins. | Nitrogen ensures that energy is available when and where it is needed to maximize yield and regulate water and nutrient uptake. | Nitrogen deficiency in crops causes stunted and spindly plants, low protein content in seed and vegetative parts, and fewer leaves. |
Phosphorus (P) | Vital for plant photosynthesis. | Phosphorus allows plants to convert the sun’s energy into food, fiber, and oil. It improves how efficiently the plant absorbs water and macronutrients such as nitrogen. | Phosphorus deficiency causes stunted growth, reduced crop yields, low quality harvests, and moisture stress. |
Potassium (K) | Essential for robust high quality crops. | Potassium helps regulate water pressure in plant cells and maximizes crop yields by strengthening plant stems to make them more resilient to drought, flooding, and temperature swings. | Potassium deficiency causes a slower growth rate of plants, delayed pollination and maturity, underdeveloped leaves, reduced crop yields, weakened stalks, and moisture stress. |
If crops lack NPK macronutrients, they become vulnerable to various stresses caused by weather conditions, pests, and diseases. Therefore, it is crucial to maintain a balance of all three macronutrients for the production of healthy, high-yielding crops.
The Importance of Fertilizers
Humans identified the importance of using fertilizers, such as manure, to nourish crops dating back to nearly 6,000 to 2,400 BC.
As agriculture became more intensive and large-scale, farmers began to experiment with different types of fertilizers. Today advanced chemical fertilizers are used across the globe to enhance global crop production.
There are a myriad of factors that affect soil type, and so the farmable land must have a healthy balance of all three macronutrients to support high-yielding, healthy crops. Consequently, arable land around the world varies in the amount and type of fertilizer it needs.
Fertilizers play an integral role in strengthening food security, and a supply of locally available fertilizer is needed in supporting global food systems in an ever-growing world.
Brazil is one of the largest exporters of agricultural goods in the world. However, the country is vulnerable as it relies on importing more than 95% of its potash to support crop growth.
Brazil Potash is developing a new potash project in Brazil to ensure a stable domestic source of this nutrient-rich fertilizer critical for global food security.
Click here to learn more about fertilizer and food production in Brazil.

-
Demographics1 day ago
Mapped: The World’s Happiest Countries in 2023
Where do the happiest people on earth live? This map is a snapshot of the world’s most (and least) happy countries in 2023.
-
Money5 days ago
The Richest People in the World in 2023
The world’s five richest people are worth a combined $729 billion. From luxury moguls to Asia’s rising titans, we show the richest in 2023.
-
Money6 days ago
Charted: 30 Years of Central Bank Gold Demand
Globally, central banks bought a record 1,136 tonnes of gold in 2022. How has central bank gold demand changed over the last three decades?
-
Money6 days ago
Mapped: Minimum Wage Around the World
This infographic shows the net minimum wage across 67 countries, as of January 2023. A breakdown by U.S. state is also included.
-
Datastream7 days ago
Will Connected Cars Break the Internet?
By 2025, connected cars could produce 10 exabytes (exabyte = 1B gigabytes) of data per month, a thousand-fold increase over current volumes.
-
Economy7 days ago
The Growing Auto Loan Problem Facing Young Americans
After a borrowing spree during COVID-19, younger Americans are struggling to keep up with their auto loan payments.
-
Finance2 weeks ago
Ranked: The World’s Most Valuable Bank Brands (2019-2023)
-
Money6 days ago
Charted: 30 Years of Central Bank Gold Demand
-
Markets4 weeks ago
Retail Investors’ Most Popular Stocks of 2023 So Far
-
VC+2 weeks ago
NEW FEATURE: Unlock the VC+ Archive in March
-
Money5 days ago
The Richest People in the World in 2023
-
Countries4 weeks ago
How the Russian Invasion of Ukraine Impacts Science and Academia
-
Datastream2 weeks ago
The Drive for a Fully Autonomous Car
-
Demographics1 day ago
Mapped: The World’s Happiest Countries in 2023