Upon returning to Australia after some years living in Mexico, our quest for cacao led us to a readily available Peruvian wholesale option that seemingly checked all the boxes: certified organic, “sustainably farmed”, and adorned with the coveted "fair trade" seal of approval. It was a tempting proposition. With promises of higher profit margins, simplified logistics, and an array of certifications to boast, it appeared to be the perfect solution.

Yet, upon sampling the cacao, we were disappointed (to say the least). Its quality and taste left much to be desired. And, we soon discovered that the same cacao was being used in virtually all the so-called "ceremonial-cacao" products available on the market at that time. This trend continues to this day.

As we delved deeper into the complexities of cacao production and distribution, and forged direct relationships with small-scale farmers, we were confronted with the stark reality of the costs involved in harvesting and processing cacao. The inexplicably low prices of wholesale cacao in Australia became increasingly perplexing, and alarming.

Operating our business has been challenging as we struggled to maintain competitive pricing against companies uses this supply chain model. Despite our cacao's superior quality, our profit margins are substantially compromised. Retail prices of “ceremonial cacao” in the UK, North America and all throughout Europe are substantially higher than the prices in Australia, due to the market share of this Peruvian wholesaler.

This experience prompted us to scrutinise the fair trade movement and its proclaimed benefits. While advocates argue that it fosters economic development in developing nations and ensures fair wages, critics contend that it merely exploits developed-world guilt.

Research supports these concerns. Investigations reveal instances of uncertified products being sold as fair trade, with workers often paid below minimum wage. Moreover, fair trade initiatives may inadvertently prioritise retailers over suppliers, perpetuating a false sense of philanthropy.

Examining the economic impact of Fairtrade International reveals a stark reality: a meagre contribution to producers' livelihoods, amounting to less than a few pence per day. A study published in the Journal of Business Ethics underscores this disparity, revealing that only a fraction of the premium paid for fair trade products reaches the farmers, with the majority absorbed by middlemen and administrative costs.

Furthermore, the historical pricing of cacao beans during the era of slavery continues to influence current prices, irrespective of origin.Historically the commodity price has been unethically low. Studies showed 73%-90% of commodity cacao farmers don’t make a living income as defined by the World Bank, and 30%-58% earn an income below the extreme poverty line.

This, coupled with the lack of transparency in the chocolate supply chain, obscures the true value received by cocoa farmers, with retailers claiming a disproportionate share of the profits.

In light of these disparities, it becomes evident that the fair trade model falls short of its altruistic intentions. Despite its noble aspirations, it risks perpetuating poverty rather than alleviating it.

OUR STANCE

Given the complexity and corruption inherent in the cacao industry, the clunky supply chains and questionable nature of so-called “fair-trade” prices, we negotiate our prices directly with the cacao farmers and/or collectives where we source our cacao. We can therefore trust that our funds (and yours) are contributing to the livelihoods of our cacao farmers and their families, not exploiting them by paying outrageously low prices.