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Illegally Cultivated Cocoa from Nigerian Rainforest Funneled to Suppliers of Leading Chocolate Manufacturers

In Business, Agriculture, Environmental Issues
December 20, 2023

OMO FOREST RESERVE, Nigeria (AP) — Men in dusty workwear trudge through a thicket, making their way up a hill where sprawling plantations lay tucked in a Nigerian rainforest whose trees have been hacked away to make room for cocoa bound for places like Europe and the U.S.

Kehinde Kumayon and his assistant clear low bushes that compete for sunlight with their cocoa trees, which have replaced the lush and dense natural foliage. The farmers swing their machetes, careful to avoid the ripening yellow pods containing beans that will help create chocolate, the treat shoppers are snapping up for Christmas.

Over the course of two visits and several days, The Associated Press repeatedly documented farmers harvesting cocoa beans where that work is banned in conservation areas of Omo Forest Reserve, a protected tropical rainforest 135 kilometers (84 miles) northeast of the coastal city of Lagos in southwestern Nigeria.

Trees here rustle as dwindling herds of critically endangered African forest elephants rumble through. Threatened pangolins, known as armored anteaters, scramble along branches. White-throated monkeys, once thought to be extinct, leap from one tree to the next. Omo also is believed to have the highest concentration of butterflies in Africa and is one of the continent’s largest and oldest UNESCO Biosphere Reserves.

Cocoa from the conservation zone is purchased by some of the world’s largest cocoa traders, according to company and trade documents and AP interviews with more than 20 farmers, five licensed buying agents, and two brokers all operating within the reserve.

They say those traders include Singapore-based food supplier Olam Group and Nigeria’s Starlink Global and Ideal Limited, the latter of which acknowledged using cocoa supplies from the forest. A fewer number of those working in the forest also mentioned Tulip Cocoa Processing Ltd., a subsidiary of Dutch cocoa trader and producer Theobroma.

Those companies supply Nigerian cocoa to some of the world’s largest chocolate manufacturers including Mars Inc. and Ferrero, but because the chocolate supply chain is so complex and opaque, it’s not clear if cocoa from deforested parts of Omo Forest Reserve makes it into the sweets that they make, such as Snickers, M&Ms, Butterfinger and Nutella. Mars and Ferrero list farming sources on their websites that are close to or overlap with the forest but do not provide specific locations.

Government officials, rangers and the growers themselves say cocoa plantations are spreading illegally into protected areas of the reserve. Farmers say they move there because their cocoa trees in other parts of the West African country are aging and not producing as much.

“We know this is a forest reserve, but if you are hungry, you go to where there is food, and this is very fertile land,” Kumayon told the AP, acknowledging that he’s growing cocoa at an illegal plantation at the Eseke farming settlement, separated only by a muddy footpath from critical habitat for what UNESCO estimates is the remaining 100 elephants deep in the conservation zone.

Conservationists also point to the world’s increasing demand for chocolate. The global cocoa and chocolate market is expected to grow from a value of $48 billion in 2022 to nearly $68 billion by 2029, according to analysts at Fortune Business Insights.

The chocolate supply chain has long been fraught with human rights abuses, exploitative labor, and environmental damage, leading to lawsuits, U.S. trade complaints, and court rulings. In response, the chocolate industry has made wide-ranging pledges and campaigns to ensure they are sourcing cocoa that is traceable, sustainable, and free of abuse.

Companies say they have adopted supply chain tracing from primary sources using GPS mapping and satellite technology as well as partnered with outside organizations and third-party auditors that certify farms’ compliance with sustainability standards.

But those working in the forest say checks that some companies rely on are not done, while one certifying agency, Rainforest Alliance, points to a lack of regulations and incomplete data and mapping in Nigeria.

AP followed a load of cocoa that farmers had harvested in the conservation zone to the warehouses of buying agents in the reserve and then delivered to an Olam facility outside the entrance of the forest.

Staffers at Olam’s and Tulip’s facilities just outside the reserve, who spoke on condition of anonymity because they’re not authorized to discuss their companies’ supplies, confirmed that they source cocoa from farmers in the conservation zone.

AP also photographed cocoa bags labeled with the names and logos of Olam and Tulip in farmers’ warehouses inside the conservation zone.

‘THEY BUY EVERYTHING’

The Omo reserve consists of a highly protected conservation zone ringed by a larger, partially protected outer region. Loggers, who are also a major source of deforestation, can get government licenses to chop down trees in the outer areas, but no licenses are given anywhere for cocoa farming. Agriculture is banned from the conservation area, except for defined areas where up to 10 indigenous communities can farm for their own food.

Nigeria is one of Africa’s biggest oil suppliers and largest economy; after petroleum, one of its top exports is cocoa. It’s the world’s fourth-largest producer of cocoa, accounting for more than 5% of global supply, according to the International Cocoa Organization. Yet it’s far behind the world’s largest producers, Ivory Coast and Ghana, which together supply more than half of the world’s demand and are often singled out in companies’ sustainability programs.

Experts at the Cocoa Research Institute of Nigeria are launching a “Trace Project” in six southern states — though it doesn’t include Ogun state where Omo Forest Reserve is located — to advance efforts against deforestation in cocoa production and ensure Nigeria’s cocoa is not rejected in Europe.

“From the preliminary data collected, major exporters are implicated in deforestation, and it is their responsibility to ensure compliance with standards,” said Rasheed Adedeji, who leads the institute’s research outreach.

But farmers say they’ll keep finding places to work.

“The world needs cocoa, and the government also gets taxes because the cocoa is exported,” said Olaniyi, one of the farmers.