# Swiss chocolate makers focus on incomes to end child labour Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-12-03 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Swiss Chocolate Makers Address Child Labour in Cocoa Supply Meta Description: Find out how Barry Callebaut and Lindt are working to improve cocoa farmers' income and eradicate child labour in the cocoa supply chain. URL: https://financedigest.com/swiss-chocolate-makers-focus-on-incomes-to-end-child-labourhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-12-03t092018z1lynxmpehb20b8rtroptp4reuters-next-cocoa-1736836717207-compressed.jpg) By Silke Koltrowitz ZURICH (Reuters) – Swiss chocolate makers Barry Callebaut and Lindt & Spruengli said improving cocoa farmers’ income was crucial to ending child labour in the cocoa supply chain. An estimated 1.56 million children work in cocoa production in West Africa and chocolate makers, under pressure from consumers and investors, are finding it tough to tackle. Lindt Chief Executive Dieter Weisskopf and Barry Callebaut [CEO Peter Boone both reiterated their support for the living income](https://www.financedigest.com/fineco-ceo-expects-fixed-income-demand-to-help-managed-assets.html "Fineco CEO expects fixed income demand to help managed assets") differential (LID) at the Reuters Next https://reutersevents.com/events/next conference. The LID is a premium on cocoa beans from [top growers Ivory Coast and Ghana that was introduced just over a year](https://www.financedigest.com/2017-cfo-outlook-top-priorities-as-new-year-gets-underway.html "2017 CFO Outlook: Top Priorities as New Year Gets Underway") ago. [Barry Callebaut](https://www.financedigest.com/factory-shutdown-to-hit-barry-callebaut-after-9-month-sales-rise.html "Factory shutdown to hit Barry Callebaut after 9-month sales rise"), which supplies food groups, is one of the biggest chocolate producers, processing almost a million tonnes of cocoa beans a year, about a fifth of the global volume. Lindt, which does not publish its volumes, is much smaller. Barry Callebaut has vowed to eradicate child labour from its supply chain by 2025, which Boone said was an important [target to show that the company](https://www.financedigest.com/britain-toughens-up-diversity-targets-for-uk-companies.html "Britain toughens up diversity targets for UK companies") was tackling the challenge. “It is a tremendous kind of objective, there is still a lot of work,” Boone, who took over as CEO in September, said in an interview, adding it would unleash creativity and action. We cannot close our eyes to something which is out there we know should not be part of our [supply chain.”](https://www.financedigest.com/ge-shares-slump-as-supply-chain-inflationary-woes-threaten-profit-outlook.html "GE shares slump as supply chain, inflationary woes threaten profit outlook") Barry Callebaut found just over 21,000 cases of child labour in its [supply chain in its financial](https://www.financedigest.com/g7-finance-leaders-pledge-financial-stability-supply-chain-diversity.html "G7 finance leaders pledge financial stability, supply chain diversity") year to August and uses remediation to resolve them. “By getting to know more of these farmers, we also know where the risk is and where we have to sit down with them, with the community to make sure it’s not going to happen,” he said. Child labour is a big issue I’m not happy with, but I try to [focus most of my time](https://www.financedigest.com/why-manufacturers-mustnt-lose-their-green-focus-in-troubled-times.html "WHY MANUFACTURERS MUSTN’T LOSE THEIR GREEN FOCUS IN TROUBLED TIMES") on just getting the farmers a better income,” Boone said, adding the LID was one tool to achieve this, but teaching farmers how to increase their productivity thanks to tree pruning or fertilisers was also essential. Jeroen Douglas, executive director of the Solidaridad Network which works with small-scale farmers, said the [scope for companies to influence price differentials was limited](https://www.financedigest.com/digital-euro-will-be-free-but-limited-in-scope-ecb-says.html "Digital euro will be free but limited in scope, ECB says") by the long-term arrangements of price setting. He said the cocoa market and prices were completely controlled by Ivory Coast and Ghana and big [financial institutions hedging future](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") volumes of production three years in advance. They are the ones that are [regulating the market](https://www.financedigest.com/gecko-governance-launches-compliance-solution-for-ico-market-following-approval-by-isle-of-man-regulator.html "GECKO Governance Launches Compliance Solution For ICO Market Following Approval by Isle of Man Regulator"). That is the missing angle,” [Douglas told Reuters in an interview](https://www.financedigest.com/the-rise-of-connected-commerce-interview-with-douglas-hartung-diebold-nixdorf.html "The Rise Of Connected Commerce: Interview With Douglas Hartung, Diebold Nixdorf"). What it boils down to is that the farmers need a larger [scale of operation](https://www.financedigest.com/russia-promises-to-scale-down-operations-in-northern-ukraine.html "Russia promises to scale down operations in northern Ukraine") to be successful,” he said. STEP BY STEP Weisskopf said Lindt’s farming programme was aimed at improve poverty through yield enhancement, infrastructure programmes and organic fertilising, while farmer training and visits and external verification should help [change behaviours](https://www.financedigest.com/changing-face-b2b-business-practices-understanding-timeless-behaviour-important-ever.html "The changing face of B2B business practices – why understanding timeless behaviour is more important than ever."). It’s step by step going forward, but at the [end of the day](https://www.financedigest.com/amazon-to-lay-off-staff-in-u-s-canada-and-costa-rica-by-end-of-day.html "Amazon to lay off staff in U.S., Canada and Costa Rica by end of day") I have to tell you it’s a very, very difficult challenge we have here,” Weisskopf said. He said he was ashamed how [little the industry had achieved in the last 10-15 years](https://www.financedigest.com/scottys-little-soldiers-become-incentive-fm-groups-chosen-charity-in-three-year-partnership.html "Scotty’s Little Soldiers Become Incentive FM Group’s Chosen Charity In Three Year Partnership") to improve the situation on child labour despite the efforts of NGOs, governments and the industry. A recent [survey by the University of Chicago found that among children in agricultural households in Ivory Coast and Ghana cocoa growing](https://www.financedigest.com/euro-zone-economy-faces-growing-risk-of-recession-survey-shows.html "Euro zone economy faces growing risk of recession, survey shows") areas, 45% were engaged in child labour. Weisskopf said it was good all industry players had to pay the LID because it meant nobody had a [competitive advantage](https://www.financedigest.com/turning-big-data-compliance-into-a-competitive-advantage.html "TURNING ‘BIG DATA’ COMPLIANCE INTO A COMPETITIVE ADVANTAGE"). To watch the Reuters Next conference please register here https://reutersevents.com/events/next (Reporting by Silke Koltrowitz, additional reporting by Nigel Hunt; Editing by Alexander Smith) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---