6TH EDITION

INSIGHTS

THE STARK REALITY OF THE COCOA INDUSTRY STRUGGLES

Key Insights

The Chocolate Crisis: Time to Act

The cocoa industry is in turmoil. Low supplies are driving cocoa prices sky-high, and now companies are feeling the pressures that farmers have faced for years. The burden of risk cannot fall on farmers alone.

Scattered initiatives aren’t enough. What’s needed is coordination—a unified strategy. We’re calling on companies, governments, civil society, and consumers to step up. This is a shared responsibility.

Together, we can drive real change for the planet, people, and primates. It’s time to act. Will you?

Transparency
Drives
Credibility and Accountability

fully disclosed child labor data

The chocolate sector is opening up.
More companies are stepping up, sharing data, and building trust as shown in the Chocolate Scorecard.

The proof? In the 6th edition, 82% of the big companies disclosed child labor data—up from 58% in the 5th edition and just 45% in the 4th edition. The trend is clear: transparency is rising, and with it, accountability.

But there’s more to do. Is your favorite chocolate brand part of the shift?

Retailers
It’s Time
to Step Up!

If companies can be transparent, so can you. Your private-label products sit right next to big company brands on the shelves—competing on price, packaging, and procurement. But when it comes to supply chain responsibility, most retailers are a long way behind.

The reality is: 
1 out of 33 retailers scored green. 
4 out of 33 retailers scored yellow. 
28 out of 33 retailers scored orange or worse.

Consumers expect better. Will you step up?

Toxic &
Unacceptable

Pesticide use remains dangerously high, poisoning the health of farming communities—especially children and pregnant women—and damaging the environment. And the industry is not doing enough. There is very little improvement.

That’s unacceptable. 100% organic and green-scoring companies (CÉMOI, HALBA, and Tony’s Chocolonely)—prove there’s a better way.

The harm is real. The solutions exist. Who will step up next?

Fair Pay
Fair Prices
No More
Excuses

Everyone deserves a living income. Yet companies can only confirm for 16% of farmers that they are earning enough to live on. There’s little proof that real change is happening—too many farmers remain trapped in extreme poverty.

Meanwhile, at the other end of the supply chain, consumers face shrinkflation and soaring prices. Who’s really benefiting here?

The system is failing. It’s time to fix it.

Deforestation
Regulations
WORK
Now We Need
Global Action

56%

Cocoa traceable and deforestation-free

Regulations have pushed over half (56%) of the cocoa supply to be traceable and deforestation-free. Regulations can drive results.

But we’re not there yet. It’s time for global commitments and stronger regulations to ensure the entire supply chain is deforestation-free. Promises aren’t enough—we need enforcement, accountability, and real action.

Who’s ready to lead?

Child Labor
A Small Step
Won’t Cut It
We Need a
Giant Leap

Everyone knows child labor is rampant in West Africa, but we still don't really know the extent. Companies sent us over 1,000 documents, reports, policies, pilot programs, and evaluations for the Chocolate Scorecard (yes, we looked at them all).

Companies are doing more but: 25 years after the first promises to eliminate child labor, it’s still happening. Small steps aren’t enough. The industry must take a bold leap forward—innovate, tackle root causes, and drive real, systemic change.

The time for half-measures is over.
Who’s ready to lead?

With Great Wealth Comes Great Responsibility

The six biggest chocolate brands make over USD215 billion combined. Meanwhile the combined GDP of Ghana and Cote d’Ivoire, the two leading cocoa producers, is approximately USD155 billion.

These companies have the power—and the profits—to drive real change. Yet, too many farmers remain trapped in poverty while chocolate giants profit.

GDP of Ghana and Cote d’Ivoire

$155

billion usd

6 biggest chocolate brands make

$215

billion usd

It’s time for the industry’s biggest players to step up. Will they?

Traceability and Transparency

If You Can’t See It, You Can’t Fix It

What we need now is for companies to be more transparent and open to being held accountable.

Traceability isn’t just a buzzword – it’s probably the most important key to solving many problems in the cocoa industry. Without knowing where cocoa comes from, how it’s grown, and the conditions farmers face, we’re blind. Transparency means companies must openly share their sourcing practices and data. It’s about accountability. It’s about action. It's about working together.

When companies refuse to participate in initiatives like the Chocolate Scorecard, it’s a red flag.

But here’s the hard truth: It signals a lack of transparency and a refusal to be held accountable. If they won’t show us their supply chains, how can we have confidence they’re doing the right thing?

Traceability is increasing. Companies are now able to trace most cocoa to country level. Traceability to farmer group and individual farm levels are also increasing. Increasingly companies are shifting from mass balance (where certified and non-certified cocoa is mixed) to segregated or identity preserved sourcing methods (where cocoa can be traced throughout the supply chain).

Living income

The Farmers’ Struggle

What do higher cocoa prices mean for farmers? In theory, it should mean more money in their pockets. But for many, this far from the reality.

less cocoa produced

fixed prices half the market price

increase in production costs

West African farmers are producing less cocoa. Prices may be up, but they have less to sell. They’re trapped in a cycle of shrinking yields and rising costs.

In Côte d’Ivoire and Ghana, the situation is dire. Government regulators set the farmgate price, which at times in 2024, was less than half of the global market price. Farmers are forced to sell their cocoa at a fraction of its value, while the world pays record prices elsewhere.

Even in countries where farmers are getting higher prices, the benefits may be slim. The cost of living is rising. Producing cocoa is becoming more expensive and time-consuming, with stricter regulations and more demanding buyers. The extra money from cocoa sales doesn’t necessarily guarantee a living income.

AND THE FUTURE?

It’s uncertain. Countries like Ecuador and Brazil are investing heavily in cocoa production. In a few years, their trees will start fully producing. When that happens, prices might crash, leaving farmers worse off than before.

WHAT ARE COMPANIES DOING? NOT ENOUGH TO SECURE THE FUTURE.

Companies love to talk about their commitments, but the numbers tell us that more is needed:

DOES THE COMPANY KNOW HOW MANY FARMERS ARE EARNING A LIVING INCOME IN THE SUPPLY CHAIN?

YES - are earning a living income

NO - are not earning a living income

Don't know either way

79% of big companies and 87% of retailers claim to have a policy stating that a living income is a basic human right. This policy however did not always apply to farmers.

Despite these policies, in reality, companies can confirm that 16% of cocoa farmers are known to be earning a living income. For 47% companies know farmers are not earning a living income. For the remaining 37% companies simply do not know either way.

Here’s the catch: only 49% of big companies and 53% of retailers have policies that actually include paying a price for cocoa which would allow a farmer to earn a living income. When this is looked at in terms of volume of cocoa, it is even more problematic.

Only 37% of the cocoa volume is covered by policies of living income for farmers. 

Small companies, on the other hand, are doing far better – over 95% of their farmers earn a living income.

Child Labor

A Promise Too Far Away

In 2001, the chocolate industry made a bold promise: to eliminate child labor from cocoa farming. They set deadlines, missed them, and set new ones. By 2020, they vowed, no child would work in hazardous conditions on cocoa farms. Yet, in 2025, that promise remains unfulfilled.

Do 1.5 million

children

still work on

cocoa farms?

The last major research project, in Côte d’Ivoire and Ghana, is now seven years old. The numbers were staggering. Where child labor is still happening they still carry heavy loads, handle toxic pesticides, and miss out on school. Childhoods are stolen, development is thwarted and their futures are uncertain.

The Industry’s Efforts: There is Progress, But More Needs to be Done

All 60 participating companies and retailers have policies to monitor, remediate, reduce, and eliminate child labor. All companies and 47% of retailers have systems in place to actually address child labor.

Companies are becoming more transparent — a positive sign that they’re not only willing to be open but also have better data at their fingertips.

MEDIUM AND LARGE COMPANIES COMPANIES REPORTING ON CHILD LABOR CASES

Transparency is improving. In 2023, only 45% of companies shared child labor data. By 2025, that number has risen to 82%.

Child Labor Monitoring and Remediation systems (like but not limited to CLMRS) coverage is expanding. Company systems covered 63,000 households in 2023 and now cover 70,000 in 2025. Many of these systems are through the membership and support of the International Cocoa Initiative (ICI).

If companies can’t find the cases, they can’t fix them.

PERCENTAGE OF CHILDREN FOUND IN CHILD LABOR (AS REPORTED BY COMPANIES)

Companies are finding about 11 children in child labor for every 100 children covered by the system. This decreased from 14 cases per 100 children in 2024.

Despite these efforts, current systems still need to scale up and shift fully from reporting to real remediation. Improving their quality will require ongoing innovation, continuous improvement, and a stronger focus on tackling root causes.

Deforestation

A Crisis Unfolding

West Africa currently produces around 75% of the world’s cocoa. But this comes at a devastating cost. In the last 60 years, Côte d’Ivoire has lost 94% of its forests, and Ghana has lost 80%. A third of this destruction was to make way for cocoa farms.

The Congo Basin (covering Cameroon, Gabon and The Republic of the Congo), is Africa’s largest rainforest and home to gorillas, chimpanzees, and countless other species. It is now under threat.

Cocoa farming is driving deforestation in the Congo Basin at seven times the rate of other crops. Protecting the world’s last remaining rainforests is of utmost importance.

94%-80%

forest loss in the last 60 years

75%

of the world’s cocoa is produced in West Africa, mostly in Côte d’Ivoire and Ghana

Addressing deforestation

The industry is trying to address deforestation. Companies and the governments of Côte d’Ivoire, Ghana, Colombia, and Cameroon have committed to ending cocoa-driven deforestation through the Cocoa & Forests Initiative (CFI). New regulations such as the European Union Regulation on Deforestation-free Products (EUDR) are also aimed at addressing deforestation.

The Industry’s Response: Promises and Gaps
Companies are taking steps to address deforestation:

The response

98%

have policies to tackle deforestation.

90%

have commitments to deforestation-free supply chains.

82%

have commitments for all cocoa purchases with 76% committed to achieving this by 2025 or earlier.

IS THE COCOA DEFORESTATION FREE?

Known to be deforestation free

Deforested or unknown

The results

Companies are using tools to monitor their commitment. 98% of companies are using geolocation data (GPS points or polygons) to map cocoa farms.

However, only around one-third of companies are combining this with maps that show where deforestation is taking place (remote sensing) or using on the ground checks to verify their findings.

Only 56% of cocoa bought by companies is confirmed deforestation-free. The remaining 44% – nearly 3 million tons – comes from deforested or unknown sources.

The EUDR: A Looming Deadline

By December 30, 2025, all cocoa entering the EU must be deforestation-free and traceable. Companies that have a 100% deforestation free commitment for 2025 are already buying deforestation free cocoa.

However, only 72% of their cocoa volume is confirmed to be deforestation free. Over 1 million tons still come from deforested or unknown sources.

Meanwhile, farmers are left to bear the burden. Many companies are abandoning farmers who aren’t EUDR-compliant, leaving them without support or alternatives.

Agroforestry

A Path to Healing the Planet

Cocoa has been a major driver of deforestation, but it can also become a way to re-green the planet. Imagine a world where cocoa farms are lush, diverse ecosystems – where cocoa trees grow alongside fruit trees, timber, and shade plants. This is agroforestry, and it’s a planet-changer.

Monoculture cocoa farming – growing cocoa alone – leaves farms vulnerable to droughts, floods, pests and diseases. It’s bad for biodiversity and inevitably bad for farmers. But agroforestry? It’s a win-win.

Benefits of Agroforestry

A

Capture more carbon, helping to fight climate change.

B

Improve soil health and retain moisture, making farms more resilient.

C

Support biodiversity, creating habitats for birds, insects, and other wildlife.

D

Diversify farmers’ incomes, so they’re not solely dependent on cocoa.

When farmers grow multiple crops, they’re no longer at the mercy of cocoa price shocks. They can better feed their families, earn a living, and protect the planet – all at the same time.

Full-sun monoculture

Diverse agroforestry systems in place

Old-growth forest with (risk of) new cocoa farms encroaching

The Reality: Agroforestry’s Untapped Potential

Weak definitions

Less than half

of large companies go beyond these basic frameworks.

Small scale

6,000 farmers = 1%

of their total purchases

Support is lacking

90% non-cocoa trees planted

in agroforestry projects die.

Agroforestry is gaining momentum, but it’s still far from its potential.

Definitions are weak. Some companies define agroforestry as simply planting shade trees. Others rely on Rainforest Alliance or Cocoa & Forests Initiative (CFI) standards, which are often limited or optional. Less than half of large companies go beyond these basic frameworks.
The scale is often too small. For example a project with 6,000 farmers might sound impressive, but when a company sources from hundreds of thousands of farmers, it’s just a tiny fraction. For some companies, 6,000 farmers represent less than 1% of their total purchases.
Support is lacking. Commitments are often vague, with targets set for 2030 or later. And without proper monitoring, up to 90% of non-cocoa trees planted in agroforestry projects die.

Agroforestry is region-specific. What works in Ghana might not work in Ecuador. Yet, less than two-thirds of companies have policies that are tailored to specific countries.

Pesticides

A Silent Crisis

Every year, 44% of farmers and farm workers globally suffer acute pesticide poisoning. Cocoa is no exception with children are exposed to these toxic chemicals, risking chemical burns, migraines, vomiting, paralysis, and even death.

Pesticides also devastate the environment, killing pollinators like midge flies that cocoa trees rely on. These pollinators are highly sensitive to the chemicals regularly used in cocoa production.

Pesticide policy

13%

of the large companies

33%

of the retailers

don’t even have a pesticide policy

1 million tons of cocoa are produced without any safeguards

Certifications

31%

of the large companies

67%

of the retailers

rely solely on certifications like Rainforest Alliance or Fairtrade. These are a start,
but they’re not enough.

Companies are beginning to understand the issue. About half of large companies have identified specific chemicals to phase out. But the next step – actively collecting data and supporting farmers to transition to safer practices – is lagging. For example there needs to be a safe way to dispose of pesticide containers. Here, companies are still not engaging actively enough.

We determined that only 20% of companies were actively collecting data on pesticides in their supply chains.

Gender Equality

The Overlooked Key to Sustainability

Women are often equally involved in cocoa farming. However, cocoa farming is traditionally seen as a “man’s job.” Female farmers are disadvantaged due to gender-based cultural, institutional and social norms. They often have less access to training, finances, land-tenure and other resources. For a sustainable cocoa supply chain, interventions must therefore include ways to address gender inequality.

Research shows that gender equality:

Reduces child labor. Empowered women are more likely to send their children to school.
Improves family welfare. Educated women invest in their families’ health, nutrition and education. Their children are less likely to be involved in hazardous work.
Boosts sustainability. Women-led farms often adopt more sustainable practices.

Furthermore, a focus on gender equality can help increase the welfare of the entire family.

Encouraging numbers

80%

of companies have a gender strategy

73%

Tener en cuenta el género en su política contra el trabajo infantil.

56%

Include gender in living income plans

The next step will be to translate these strategies into concrete practices that work in real farming communities. This is the second year that gender has been included in the Chocolate Scorecard. In the next survey we will focus more on application and impact.

Supply chain

67%
of companies know how many women hold leadership positions at one or more of the farmer groups that they buy from.