News article

The environmental impact of cacao growing explained

27 February 2025

The global chocolate industry is worth over $90 billion, yet its impact on the natural world remains a significant concern. Cocoa production, the foundation of this industry, relies on intricate supply chains that are often difficult to trace. This lack of transparency makes it challenging to tackle issues such as deforestation and carbon emissions.

Research indicates that cocoa farming contributes to forest loss in major producing countries like Ghana and Côte d’Ivoire, where expanding plantations have led to a decline in biodiversity. While practices such as agroforestry offer promising solutions, their widespread adoption remains a challenge.

This section examines the complexities of cocoa production and explores how the industry can remain profitable while reducing its impact on nature.

The environmental impact of cacao growing explained

Understanding the background of cacao and its environmental footprint

Cocoa has been a prized crop for centuries, but its modern production raises pressing concerns. Originating in ancient Mesoamerica, cocoa was once a luxury reserved for royalty. Today, it is a global commodity, with over 4.5 million tonnes produced annually. However, this expansion has come at a significant cost to the natural world.

West Africa epitomises this tension. In Ghana and Côte d’Ivoire, which collectively supply much of the world’s cocoa, forest cover has dwindled dramatically as farmland expands. This habitat destruction not only jeopardises biodiversity but also undermines carbon sequestration capacity, exacerbating global emissions.

Smallholders form the backbone of production, with over 90% of cocoa grown on modest plots, predominantly in low-income regions. However, many farmers grapple with inefficient techniques, limited yields, and inadequate access to innovations that could reduce environmental harm.

The cocoa supply chain is highly complex and often lacks transparency. Monitoring both direct and indirect impacts remains difficult, making it harder to address issues such as deforestation and labour practices. Robust traceability systems are essential to improving standards across the industry.

Changing climate patterns add another layer of difficulty for cocoa farmers. Rising temperatures and unpredictable weather affect crop yields, forcing farmers to adapt. Approaches such as agroforestry offer potential solutions, but their adoption at scale remains a challenge.

Cocoa farming expansion threatens forests and biodiversity in West Africa.

Unpacking the "cacao growing environmental impact" in today’s world

Recent studies highlight the hidden costs of cocoa production on the natural world. The term "cacao growing environmental impact" refers to the effects of farming practices on ecosystems, including deforestation and biodiversity loss. In West Africa, for example, the expansion of cocoa farms has led to significant forest loss.

Complex supply chains make accountability more difficult. Many cocoa beans pass through multiple intermediaries before reaching manufacturers, making it harder to trace their origins and assess environmental damage. Research published in Science Advances identifies weaknesses in traceability systems that limit efforts to monitor production practices.

Rising demand for chocolate is putting pressure on producers to expand cultivation in ways that are not sustainable. Farmers often clear forests to increase yields, which threatens biodiversity. In countries like Ghana and Côte d’Ivoire, this has contributed to the loss of protected areas.

Technology plays a key role in tracking cocoa origins. Tools such as satellite mapping help monitor deforestation and improve transparency. Meanwhile, global initiatives are emerging to reduce environmental harm. Approaches like agroforestry encourage more sustainable farming by integrating trees into cocoa plantations.

These efforts aim to improve production methods while reducing environmental impact. Strengthening traceability systems and supporting better agricultural practices will be essential in limiting cocoa farming’s footprint on natural ecosystems.

Examining deforestation and its drivers in cacao cultivation

Cocoa cultivation has emerged as a leading contributor of deforestation across West Africa, with Ghana and Côte d’Ivoire experiencing particularly severe forest degradation. In these nations, swathes of primary woodland have been converted to cocoa plantations, destabilising ecosystems and accelerating global heating through reduced carbon sequestration.

Smallholder farmers play a central role in this issue. Many clear forests to increase yields, driven by low incomes and limited access to more sustainable farming methods. Complex supply chains further complicate accountability, as tracing the origins of cocoa beans remains a challenge.

Research indicates that cocoa cultivation is responsible for over 37% of forest loss in protected areas of Côte d’Ivoire, while in Ghana, the figure stands at around 13%. These statistics highlight the scale of deforestation in key cocoa-producing regions.

The loss of forests disrupts ecosystems by reducing biodiversity. Forests support countless species, and their destruction leads to habitat loss. With fewer trees to store carbon, emissions from land use change increase, worsening global warming.

Government policies and international scrutiny are essential in tackling this issue. Efforts to monitor deforestation and encourage better farming practices are growing. However, further action is needed to ensure cocoa production reduces its impact on forests.

Cocoa farming drives deforestation in West Africa, threatening forests and wildlife.
Agroforestry in cocoa farming boosts biodiversity and improves soil health

Sustainable practices and agroforestry innovations in cacao farming

Agroforestry is reshaping cocoa farming by integrating trees into crop systems. This approach replaces traditional full-sun methods, which can degrade soil and reduce biodiversity. By growing cocoa alongside shade trees, farmers can improve yields while protecting the surrounding environment.

One key advantage of agroforestry is its support for biodiversity. Shade trees provide habitats for wildlife, contributing to a more diverse ecosystem. Research indicates that farms with 30–40% shade cover sustain higher biodiversity levels. This method also reduces the need for chemical pesticides, lowering costs for farmers.

Soil health improves significantly in agroforestry systems. Trees help prevent erosion and enrich the soil with organic matter, enhancing fertility. This leads to healthier cocoa plants and strengthens the long-term viability of farms. Farmers in Ghana and Côte d’Ivoire are already experiencing these benefits.

Agroforestry also increases resilience to changing weather patterns. Shade trees regulate temperature and moisture levels, protecting cocoa crops from extreme conditions. This reduces the risk of crop failure and supports more stable incomes for farmers.

Many cocoa companies are investing in agroforestry initiatives. Programmes such as the Cocoa & Forests Initiative provide trees and train farmers in improved cultivation techniques. These efforts aim to restore forest cover and strengthen farming communities in cocoa-producing regions.

Innovative tools, such as satellite mapping, are helping track agroforestry progress. These technologies improve transparency and accountability in cocoa production. By adopting agroforestry, the industry can maintain productivity while reducing its impact on the environment.

Innovative use of cacao byproducts and circular economy initiatives

Cocoa production generates significant waste, but innovative solutions are transforming byproducts into valuable resources. Around 75% of the cacao pod is discarded during processing, creating inefficiencies in the supply chain. This waste includes husks, pulp, and shells, all of which can be repurposed into useful materials.

One example is the conversion of cacao pod husks into biomass for electricity generation. In Côte d’Ivoire, the Biomass Electricity Production project processes 400,000 tonnes of pods annually to produce energy. This initiative not only reduces waste but also provides a local power source.

Companies are also developing new products from cacao byproducts. For example, cocoa flour made from bean shells is becoming popular as a gluten-free ingredient. Others are using cacao pulp to create refreshing drinks, offering farmers additional revenue streams. These innovations highlight the potential of circular economy approaches in the cocoa industry.

Efforts to reduce waste are also benefiting cocoa-growing communities. Projects in Uganda and Côte d’Ivoire help farmers turn byproducts into compost, animal feed, and renewable energy. These initiatives lessen environmental impact while improving livelihoods for smallholder farmers.

Although challenges such as limited infrastructure and awareness remain, these solutions are gaining momentum. By adopting circular economy practices, the cocoa industry can reduce waste, support farmers, and improve resource efficiency.

Cocoa byproducts are repurposed into biomass, compost, and new food products.
Cocoa farming supports millions of livelihoods but faces challenges such as low farmer incomes, ageing plantations, and supply chain complexities.

Economic and social dimensions of cacao cultivation

Cocoa farming sustains millions of livelihoods worldwide, yet it faces significant economic and social challenges. In countries such as Ghana and Ecuador, cocoa is a major source of foreign exchange and employment. More than five million families rely on the crop as their primary income, making it essential to rural economies. In Ghana, where cocoa contributes 30% of export revenues, the average farmer earns around £1,500 per year—far below the crop’s global market value.

Despite its importance, cocoa production is hindered by ageing plantations and declining yields. Many farms still use traditional methods that limit productivity. A lack of investment and access to modern technology further exacerbates these challenges, leaving many farmers with low earnings. Additionally, complex supply chains often prevent growers from securing fair prices, reinforcing economic hardship in cocoa-producing regions.

Improved cocoa varieties offer one solution. High-yielding, disease-resistant hybrids developed by Ghana’s Cocoa Research Institute have increased yields by up to 40% in some regions, enabling greater community investment in education and infrastructure. Market diversification and advancements in processing technologies are also driving change. Expanding into premium chocolate markets allows farmers to secure prices up to 25% higher than standard commodity rates. This shift not only increases income but also strengthens the cocoa sector in producing countries.

The impact of cocoa farming extends beyond economics. It provides stability and growth opportunities in rural areas, funding healthcare initiatives and women’s cooperatives in countries such as Côte d’Ivoire. However, persistent challenges such as child labour—affecting an estimated 1.5 million children in West Africa—highlight the need for long-term improvements.

Addressing these issues is crucial for a more equitable future in cocoa production. Providing farmers with better resources, improved agricultural techniques, and greater market access will support economic development while ensuring fairer conditions across the industry. Strengthening transparency in supply chains and expanding access to finance could further help farmers secure a more stable and sustainable future.

Government policies, industry actions, and incentives for sustainability

Governments and industry stakeholders are intensifying efforts to transition cocoa cultivation towards ecologically sound practices. In West Africa, nations such as Ghana and Côte d’Ivoire have introduced stringent land-use policies to curb agricultural expansion into forests, prioritising both ecosystem preservation and farmer livelihoods.

The Cocoa & Forests Initiative (CFI) is a key industry-led collaboration. Launched in 2017, it brings together governments, companies, and NGOs to tackle deforestation. The updated CFI 2.0 prioritises traceability and sustainable farming methods, with the goal of ensuring cocoa production does not contribute to forest loss.

New regulations are also reshaping the sector. The European Union Deforestation Regulation (EUDR), set to take effect in 2024, will restrict imports of cocoa linked to deforestation. This legislation compels companies to adopt transparent supply chains and invest in responsible farming practices.

National traceability systems are emerging in major cocoa-producing countries. In Côte d’Ivoire and Ghana, polygon mapping technology is being used to monitor cocoa farms, helping ensure that beans are sourced from areas not affected by deforestation.

Incentive programmes are encouraging farmers to adopt more sustainable methods. Governments and businesses are providing training, resources, and financial support to help improve productivity while reducing environmental harm.

These policies are making a significant impact. By promoting transparency and sustainable practices, the cocoa industry can foster economic growth while reducing pressures on forests. Farmers benefit from improved incomes, and natural landscapes are safeguarded for future generations.

Efforts to improve cocoa farming focus on traceability, sustainable practices, and forest protection.
Advanced research and technology are shaping a more sustainable future for cocoa production.

Research findings and future prospects in cacao growing

Research into cocoa production highlights both challenges and opportunities for sustainability. Recent studies have mapped the entire life cycle of chocolate, from farm to consumer, identifying key environmental impacts. Life cycle assessments (LCA), such as those led by the International Cocoa Organisation, have pinpointed areas like fertiliser use and post-harvest processing, where efficiency improvements could reduce the sector’s carbon footprint by up to 30%.

Technology plays a crucial role in monitoring cocoa farming. Satellite-based forest monitoring platforms, such as Ghana’s Cocoa Forest REDD+ Programme, provide near-real-time tracking of canopy cover. These systems have already improved supply chain transparency across 600,000 hectares of West African cocoa farms since 2020, helping to address deforestation and ensure responsible sourcing.

Shifting climatic conditions are also affecting cocoa-growing regions. By 2050, rising temperatures could render 40% of current cocoa-growing areas in Côte d’Ivoire unsuitable, according to CGIAR modelling. In response, breeding programmes at the University of Ghana are developing drought-tolerant cacao hybrids, which can thrive in degraded soils while maintaining bean quality for premium markets.

Enhancing traceability is another priority. Blockchain initiatives, such as those piloted by Nestlé and IBM Food Trust, allow consumers to verify the origins of their chocolate via QR codes, linking purchases to cooperatives using agroforestry practices.

These developments highlight how cocoa production can reduce its environmental impact while maintaining productivity. By leveraging research and technology, the industry can support farmers, strengthen supply chains, and preserve vital forest ecosystems.

Summing up the environmental journey in cacao cultivation

The shift towards more sustainable cocoa farming is gaining momentum worldwide. While deforestation remains a challenge, agroforestry and circular economy practices are helping to address it. These approaches enhance biodiversity, improve soil health, and support farmer livelihoods.

However, economic and social challenges persist. Many cocoa farmers struggle with low yields and limited resources, restricting their ability to invest in more sustainable methods. Government policies and industry initiatives are playing a vital role in tackling these issues. Programmes such as the Cocoa & Forests Initiative are already contributing to improvements in farming practices and supply chain transparency.

Collaboration remains essential for the future of the cocoa industry. Ongoing research and the widespread adoption of best practices can reduce its environmental impact. By working together, stakeholders can support both the long-term viability of cocoa farming and the protection of valuable ecosystems.

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