The Cacao Farmer

Cacao Farmers constituTe the front line of chocolate production.

A family Affair

Smallholder farms, operated by families owning modest parcels of land (usually between 2-5 hectares), are the backbone of the global cacao supply, contributing 90% of its volume. These farms experience two harvest seasons annually, with the harvesting period stretching over weeks due to the staggered maturation of cacao pods. During the intervals between harvests, families engage in pruning, soil cultivation, planting new seedlings, and general upkeep.

Cacao cultivation on these farms is more than just agriculture; it's a revered tradition, woven into the fabric of family life and passed down through generations. Elders teach the youth venerable, time-tested methods, ensuring that every cacao plant, and thus every batch of cacao, embodies the essence and heritage of their community. This cycle of learning and passing on knowledge not only supports the family's sustenance but also fortifies the cultural identity of cacao-producing areas, with each harvest celebrating their deep-rooted bond with the earth.

With an average household size of six, farm children often contribute to the family's efforts post-school. Given the modest returns from cacao alone, it's common for farming families to diversify their income through additional ventures, underscoring the resilience and adaptability inherent in the life of a cacao farmer.

FinanCe

This data was gathered on February 29, 2024, the date this analysis was conducted. It's important to note that these figures are subject to change, hopefully trending towards improvement.

  • A 3.5 hectare farm will often produce 1.6 metric tons of cacao.

  • Commodity price: $6,049/metric ton. (we typically pay 2-4 times that)

  • If the farm gate is 70%, the family farm receives $6,674 for 1.6mt.

  • Each person in the household earns $1,129; ~$3.84/day/person.

The global benchmark for "extreme poverty" is defined by the inability to meet essential living costs like housing, food, and other basic needs. For context, in the U.S., this threshold is $56 per day per person, while in many cacao-producing regions, it's $2.15. Not long ago, these farmers lived well below the poverty line, making as little as $0.78/day. The current earning of $3.84/day/person a significant improvement, albeit with more progress needed.

Increasing global demand for chocolate and consumer advocacy for fair compensation, as seen through "Fair Trade" and "Direct Trade" initiatives, have positively influenced these economic dynamics. An even better rate can be obtained when selling to artisan bean to bar makers (like Flight Chocolate).

Farmers often seek not just higher payments but broader opportunities and better access to social services. Their priorities include safety, food security, and health. Enhancing their income is crucial, yet in some cases, the provision of shared resources, access to healthcare, education, and utilities can be equally transformative.

What to Grow?

A pressing issue within the fine chocolate sector is the sustainability of fine (flavor) cacao bean cultivation. Similar to the agricultural challenges faced by tomatoes and roses, which have seen diminished variety due to the commercial prioritization of specific traits, cacao beans are encountering a parallel dilemma.

In an effort to mitigate risks associated with weather and disease, and to enhance yields, certain cacao beans have been genetically selected or engineered. These beans are typically used in chocolate production due to their robustness, but their flavor profiles often fall short, tending towards bitterness— typically countered with more sugar and “dutching”— and lacking the nuanced tastes characteristic of fine cacao.

Efforts to enhance these beans through advanced fermentation and drying techniques have shown promise, improving their flavor profiles to some extent. Nevertheless, heirloom cacao varieties continue to reign supreme in the realm of fine chocolate, celebrated for their unparalleled and distinctive flavors.

It's clear why farmers might opt to cultivate more lucrative crops or genetically modified beans—to mitigate risks and boost yields. To put this into perspective, consider the yield potential of different cocoa bean varieties: Forastero beans can be seen as the baseline, yielding 100% potential. In comparison, Trinitario yields are about 75% of Forastero's, while Criollo and Nacional varieties yield roughly 50%. That said, artisans are willing to pay 5 times the price for heirloom beans.