Where DEG promotes sustainable cocoa and chocolate production

It could be in the form of a Santa Claus, a gold coin or a bar: during the Christmas holidays, chocolate goodies are part and parcel of the festivities for many people. Yet few think about where and how the chocolate was produced. The sustainable production of cocoa beans and chocolate is highly important for the environment and for the communities involved in their production. Cocoa beans, the main ingredient in chocolate, are primarily grown in developing countries in West Africa, Latin America and Asia. Cocoa bean production has a considerable impact on the lives of millions of small farmers and their families.

For this reason, DEG finances and advises a range of companies that work locally to promote sustainable cocoa bean and chocolate production, high environmental and social standards, and fair labour practices. In 2022, for example, DEG co-financed through the develoPPP funding programme two projects run by enterprises that make the cultivation of cocoa beans in Africa socially and environmentally compatible. In Côte d'Ivoire, support is being provided to ensure sustainable agroforestry together with project partner Sucres et Denrées SA. Due to the spread of monocultures, the country has been seeing an immense decline in its forest areas for many years. The yield obtained by local cocoa farmers is also decreasing, with factors including inadequate soil management and lack of pest control. By contributing a total of EUR 800,000, develoPPP is helping to make local cocoa plantations more productive and resilient to environmental and climate impacts by applying forestry management methods. Up to 5,000 farmers are expected to benefit from the project by the time it is completed next year.

In Ghana, develoPPP funds are being used in cooperation with Dr. Bronner's Europe GmbH and Serendipalm Co. Ltd to promote the shift from traditional plantation cultivation to sustainably managed farms. While the conventional cultivation of cocoa trees is no longer viable at this time for the majority of local smallholders due to low prices on the world market, there is nevertheless considerable demand for sustainable products based on organic standards. The develoPPP project, which is aimed at farmers in Eastern Ghana and the Ashanti region, provides expertise and structural support in modernising farms through sustainable agroforestry management techniques. develoPPP is contributing around EUR 1.6 million to the project, which supports around 900 local farms.

DEG also advises on and finances sustainable chocolate production by companies. Since 2016, it has been promoting sustainable soil management in West Africa likewise through the develoPPP programme, in a pilot project with chocolate manufacturer Tony's Chocolonely. The company focuses on the production of organic fertiliser from the residue of the cocoa harvest for around 800 members of agricultural cooperatives in Ghana and Côte d'Ivoire. DEG is also involved with the chocolate manufacturer Fairafric through its AfricaConnect programme. The company produces fair trade organic chocolate entirely in Ghana, the country of origin – a real break with convention in a chocolate industry traditionally dominated by non-African companies.

So by making a conscious choice to support sustainable chocolate production this Christmas, you are not only spreading joy in the holiday season, but also helping sustainable development.