Cadbury Cocoa: The Commodity Chain

Food is no longer just about nutrition, but it also holds other socio-cultural meanings associated with the place where we eat it and where it came from. According to Bell and Valentine (1997), by focusing on consumption patterns, we can consider socio-cultural issues such as health, politics, nationalism, ethics and TNCs, and this makes studying the geographies of food so interesting. Not only should we view the geographies of a food through the production lens. It should also be viewed from the consumption one as well as it brings to the forefront the importance of the economy, cultural symbols and patterns that influence consumption (Conca, 2001). In this essay, the Cadbury Cocoa powder will be examined both from the consumption angle, as well as the production one. It will be investigated in terms of socio-economic, as well as socio-environmental issues. The cultural aspect will not be left out as the consumer impact will be discussed as well.

According to the Cadbury website, the Cadbury confectionary company was established in 1824 in Birmingham, United Kingdom by John Cadbury. In 1866, the first pure cocoa “Cadbury Cocoa Essence” was manufactured. Several years later, in 1906, the company manufactured its first alkalised cocoa (cocoa with carbonate of potash), Bournville Cocoa – its first un-pure cocoa. According to the Cadbury website, the company also manufactures different types of chocolate and chocolate drinks.

Cocoa trees grow best under certain conditions. As of April 2, 2014, The Chocolate Review listed on its website that cocoa grows best 15-20 degrees North and South of the Equator in temperatures averaging 25 degrees and where rainfall is 40 to 80 inches per year. The regions in which cocoa grows the best are West Africa, Central and South America and parts of Asia. Cocoa is Ghana’s greatest industry. It is grown in the southern forest belt on small farms, no more than a few acres large and run and worked on by peasant families (Frankel, 1974). According to the fact sheet on the Cadbury website, Cadbury obtains its cocoa from cocoa fields in Ghana in West Africa where during the months of October and December, harvesting takes place. Approximately 70% of the cocoa that is used by Cadbury is obtained from small Ghanaian cocoa farms, usually run by families. Cocoa was introduced in the south of the Gold Coast in the middle of the 19^th century due to a fall in the price of palm oil, which prompted the search for an alternate export, and a rubber export boom which supplied the capital for land purchase (Kolavalli and Vigneri, n.d.).

By the time the cocoa reaches shelves internationally, it would have already gone through manufacturers, processors and traders. The cultivation of the cocoa pods in Ghana takes place under a specific environmental, economic and social atmosphere. According to Kolavalli and Vigneri (n.d.), cocoa cultivation in Ghana is grown under challenging environmental conditions including pest invasions and land degradation. Capsids tend to attack cocoa trees that are in full-sun more than those in shaded systems. Full-sun trees bring in higher short-term profits, which farmers tend to prefer over the shaded systems (Obri et al. 2007). The cocoa cultivation has also led to forest degradation in the regions in which the trees are grown. Fallowing is not allowed in the growing of cocoa trees and so soil fertility drops. Deforestation has also occurred to make space for the new hybrid cocoa breeds and there is now little to no shade on the fields.

The cocoa industry in Ghana also faces global criticism for alleged child labour taking place within it. In 2009, the US Department of Labour listed Ghana as one of the countries that use children in the production of their cocoa. According to Lotte and Hougee (2010), 997,357 children were working on cocoa fields between 2007-2008, forced to work for long hours with hazardous tools and subject to physical abuse.

Cocoa production in Ghana is also affected by socio-economic factors within the country. The main factors are the predominant poverty conditions and price vulnerability. Cocoa production occurs under poverty conditions in Ghana. According to Lotte and Hougee (2010), the Tropical Commodity Coalition has estimated that a cocoa farming family of about 6 or 7 members earn around US $2500 a year. These low incomes mean that vulnerability to the global market and its fluctuations is great. When prices are low, incomes can drop to below poverty level (Lotte and Hougee, 2010). Similarly, as Ghana is located in the tropic region, the cocoa farmers are especially susceptible to climatic extremities such as droughts. According to an article in the Daily Mail in 2009, in 2007 a harsh drought affected West Africa, leading to poor harvest, a shortage of cocoa beans and a subsequent price hike in chocolate. The vulnerability of these poor Ghanaian cocoa farmers to the climate is worsened by poor access to funding. The limited access to credit makes it harder for farmers to prosper in the face of economic volatility and environmental risks since they have to use their own limited resource to prevent or recover from disaste, further perpetuating poverty and strengthening their reasoning behind using child labour which is cheaper (Lotte and Hougee, 2010).

Socio-political factors in Ghana have also influenced cocoa productivity. Ethnic violence, wars and the resulting displacement of people from neighbouring national conflicts have all jeopardized cocoa production (Lotte and Hougee, 2010). According to Lotte and Hougee (2010), there has also been a brain drain of the youth population due to deteriorating labour conditions from the rural and countryside areas and resulting in a loss of indigenous farming knowledge as the older population is not able to pass on the knowledge inter-generationally. 

Picture 1: A Ghanaian cocoa worker tends to the cocoa beans. 

 

Source: www.independent.ie

Many people do not see, think about or know about the social, economic and environmental aspects of cocoa production when they consume their Cadbury products. After the cocoa pods are harvested, they are taken to the United Kingdom to be manufactured into chocolate and cocoa products. While Bournville is the home of Cadbury, Chirk, located in Wales, is responsible for producing the Bournville cocoa powder. According to the Cadbury website, the beans are sent to Chirk for cleaning and processing on a conveyor belt, roasted in a continuous roaster, broken up into small pieces, and then the shells are blown away, leaving only the nibs. The website goes on to say that a mill grinds the nibs into a liquid called “mass” which is interestingly the basis for all of Cadbury’s cocoa and chocolate products. Cocoa butter is contained in the mass, half of which is pressed out, leaving behind a block which can be ground in order to produce the Bournville cocoa powder. After the processing, it is sent to the Cadbury factory in Bournville, Birmingham for grinding. After it is packaged here, by the Mondelez International manufacturer in a tin, it is time for distribution.

Picture 2: The Cadbury Factory in Bournville, Birmingham. Source: theguardian.com

The company A.S. Bryden and Sons (Trinidad) Ltd. has become Trinidad’s preferred distributor for popular international brand-name commodities. According to the Bryden website as of April 3, 2014, A.S. Bryden and Sons focuses on the distributing fast-moving consumer goods and its main specialization groupings are Hardware and Houseware, Premium Beverage and Food and Grocery. It is in the Food and Grocery grouping that the Cadbury Bournville Cocoa (as well as other Cadbury confectionary) is found and distributed.

A.S. Bryden and Sons imports the Cadbury Bournville Cocoa from the UK for distribution. According to the Bryden website as of April 3, 2014, A.S. Bryden is the preferred distributor for Kraft Foods International when exporting foodstuff to Trinidad and Tobago. Kraft Foods International owns the Cadbury Company. The downmarket distribution takes place next. According to the Bryden website, a van distribution network is employed, distributing the product to supermarkets, convenience stores, parlours and mini marts.

Picture 3: A.S. Bryden and Sons (Trinidad) Ltd. Source: www.brydenstt.com

Picture 4: World Map showing the Cadbury cocoa commodity route from Ghana to the UK to Trinidad and Tobago.

In Trinidad and Tobago, cocoa has a rich heritage and is an important aspect of our history. Although it is not the profitable commodity that it once was, cocoa is still widely used as it is imported greatly. The Cadbury cocoa powder is one of the more popular and preferred cocoa powders on supermarket shelves today in Trinidad and Tobago due to its long history and international acclaim. Cocoa trees are grown in Trinidad and Tobago. However, due to economic vulnerability and competition, as well as the decline in the profitability of agriculture, cocoa is imported more than it is exported. Trinidadians use cocoa, including the Cadbury cocoa, for baking and for making beverages.

Cadbury cocoa is, however, more expensive than many other cocoa brands, especially the local ones. Cadbury cocoa commands a premium price because of two main reasons. The first reason is the type of cocoa produced. The cocoa used in the production of all Cadbury products is Forastero cocoa. Ghana produces the Forastero cocoa breed and it is more vigorous, high quality, less vulnerable to diseases, slightly bitter but its flavour is stronger than the other two types of cocoa pods, Trinitario and Criollo (Afoakwa, 2014). The second reason is that Cadbury now sources all of its cocoa from Fair Trade farmers. The Fair Trade Foundation stated on its website that at the end of summer 2009, Cadbury had achieved Fair Trade certification for its cocoa, which would double or triple cocoa sales for Ghanaian farmers as well as raise the price of its cocoa powder on supermarket shelves.

While cocoa is an influential aspect of Trinidad’s culture and history, Cadbury’s cocoa may not be the brand that Trinidadians may flock to. There are other local brands in Trinidad that produce cocoa, such as Chief, and will sell at a cheaper price than Cadbury. However, Cadbury has managed to stay on the market for years in Trinidad. In this case, taste and relative popularity may be the reason for it having some sort of impact on Trinidadian buying pattern of cocoa. Cadbury is generally seen as a superior brand to the local cocoa powder producers so it is more popular to the local population.

No significant images are used to represent the commodity. However, the design has not changed for years. The orange colour of the tin has become synonymous with the Trinidadian community. On many local packaging, there are images of the cocoa pods. On the Cadbury cocoa powder tin, there are no images of cocoa or anything related to cocoa besides the actual word itself.

What is noticeable about the packaging, however, is the British coat of arms located above the “Cadbury Cocoa” signage. This is a very significant symbol related to the Cadbury Cocoa powder as it stresses unto the consumer the impact of the British in the production and manufacture of the product. The Coat of Arms is also surrounded by the words, “By Appointment To H.M. The Queen” on one side, and on the other side, “Cocoa and Chocolate Manufacturers.” Cadbury, in this way, shows that the cocoa powder is indigenous to the United Kigndom. However, nowhere on the packaging mentions the Ghanaian farms that it has come from. The consumer would most likely end up associating the cocoa powder to the UK in this way.

In Trinidad, and other parts of the Global South, the idea of ‘foreign is better’ is a popular one. It is almost like a subtle reminder to the potential customer that the cocoa is not local in an effort to get the consumer to purchase it as opposed to purchasing the local brands. Stating that it is “By Appointment to H.M. The Queen” may be construed as if it is better than local brands just because it might be “royalty-endorsed.” Simple symbols like this, therefore, influence the buying and consumption patterns of consumers. The British symbols do not assist very much in the contribution to collective identity. Trinidad and Tobago, as well as other Global South countries, was a British colony at one point. These British symbols re-introduce the idea of European supremacy on the market, reminiscent of colonial times when imports from British and other European countries flooded the markets of the British colonies. The importance of local cocoa products may do a better job at encouraging and enforcing the collective Trinidadian identity and culture.

REFERENCES.

Afoakwa, Emmanuel O. Cocoa Production and Processing Technology. Florida: CRC Press, 2014.

Bell, D. and G. Valentine. Consuming geographies: we are where we eat. New York: Routledge, 1997.

Brydens Trinidad and Tobago. “Downmarket Distribution.” Accessed April 2, 2014. http://www.brydenstt.com/index.php?option=com_content&view=article&id=20&sid=4&Itemid=5.

Cadbury. “Fact Sheet.” Accessed March 29, 2014. http://www.cadburyworld.co.uk/schoolandgroups/~/media/CadburyWorld/en/Files/Pdf/factsheet-chocolate-manufacture.

Frankel, Jeffrey A. “Cocoa in Ghana: The Cocoa Farmers, the Cocoa Marketing Board, and the Elasticity of Supply,” Paper, University of California, 1974.

Griek, Lotte and Esther Hougee. “Bitter Harvest: Child Labour in the Cocoa Supply Chain.” Sustainalytics, June 2010, http://www.sustainalytics.com/sites/default/files/Child_labour_in_the_cocoa_supply_chain_SustSustainaly.pdf.

Independent. “Guilt-free chocolate: Cadbury switches to Fair Trade.” Last modified November 27, 2012. http://www.independent.ie/woman/guiltfree-chocolate-cadbury-switches-to-fair-trade-cocoa-26518288.html.

Kolavalli, Shashi and Vigneri Marcella. “Cocoa in Ghana: Shaping the Success of an Economy.” In Yes, Africa can: success stories from a dynamic continent, 201-217. Washington D.C.: The World Bank, 2011.

Obri, B.D., G.A. Bright, M.A. McDonald, L.C.N. Anglaaere and J. Cobbina. “Financial Analysis of Shaded Cocoa in Ghana.” Agroforestry Systems 71: 139-49.

The Chocolate Review. “Where Does Chocolate Come From?” Accessed April 2, 2014. http://thechocolatereview.com/where-does-chocolate-come-from-/where-does-chocolate-come-from.html.

The Daily Mail. “Worst Cocoa Shortage for 40 Years Fuels Chocolate Price Rise Fears.” Last modified September 24, 2009. http://www.dailymail.co.uk/news/article-1215682/Worst-cocoa-shortage-40-years-fuels-chocolate-price-rise-fears.html#ixzz0qXCpQWNv.

The Fairtrade Foundation. “Cadbury Dairy Milk commits to going Fairtrade.” Last modified March 4, 2009. http://www.fairtrade.org.uk/press_office/press_releases_and_statements/archive_2009/march_2009/cadbury_dairy_milk_commits_to_going_fairtrade.aspx.

The Guardian. “Bournville: the town that chocolate built.” Last modified January 23, 2010.  http://www.theguardian.com/business/2010/jan/23/bournville-cadbury-town.