Why Child Labor in the Cocoa Industry Isn’t Going Away – and How Operational Thinking Can Help

The image shows a close-up of two open hands held palms-up. The hands are dirty, with visible dust, grime, and small marks, suggesting outdoor work.

When I talk about sustainability in supply chains, I’m often asked: “But is anything really changing?” The issue of child labor in the cocoa industry is a powerful example that shows how difficult it is to address deeply rooted problems – and how logistics and operations can play a central role in the solution.

Roughly 1.56 million children are estimated to work under hazardous conditions on cocoa farms in West Africa, especially in Côte d’Ivoire and Ghana. Many are involved in harvesting, carrying heavy loads, or working with pesticides. Most of them work on family-run farms – families living in extreme poverty, dependent on every helping hand.

Why Most Programs Fail

Over the past decades, many companies and NGOs have launched initiatives to reduce child labor in the cocoa supply chain. Large chocolate manufacturers like Nestlé, Mondelez, or Barry Callebaut have created programs focusing on education, better working conditions, and higher income. NGOs like the International Cocoa Initiative (ICI) work directly with communities to provide alternatives and raise awareness in sustainable supply chains.

Yet the number of children affected has not declined – it has grown. Why?

First: Monitoring millions of smallholders is extremely difficult.
Second: Farmers vary greatly in structure, size, and family composition.
Third: Most programs don’t address the root cause – poverty. As long as families cannot earn a living wage, child labor often remains essential for survival.

Financial and Operational Levers Against Child Labor

My research focuses on how such systemic problems can be solved more effectively in terms of access to credit, unconditional cash transfers, and access to better farming methods and production resources.

One company that puts this into practice is Tony’s Chocolonely. It works directly with farmer cooperatives, ensures full supply chain traceability, and pays higher prices. Their system doesn’t just promise ethical behavior – it is designed to tackle the root causes of child labor in the cocoa industry.

What We Should Take Away

Sustainability in global supply chains is not a PR exercise. It requires operational excellence: systems that address poverty, expose social risks, and manage them actively. And it requires partners who take responsibility – not just tick boxes.

If we take that seriously, reducing child labor becomes possible – not through campaigns alone, but through better structures.

Prof. Dr. Andreas Gernert

Prof. Dr. Andreas Gernert is Assistant Professor for Sustainable Operations at KLU. Prof. Dr. Gernert's current research examines policies, business models, and strategies pertaining to the three dimensions of sustainability - environmental, social, and economic. To facilitate the students' learning experience, Prof. Dr. Gernert utilizes interactive and student-centered teaching methods such as case study discussions and educational games.