♪ ("LAST WEEK TONIGHT"
THEME MUSIC PLAYS) ♪ Our main story tonight
concerns chocolate, the star attraction
in Neapolitan ice cream. Nothing against vanilla
and strawberry, it's just that one is
a euphemism for boring sex and the other is fruit,
and fruit is simply not dessert. -(BUZZER BLARES)
-(AUDIENCE LAUGHS) Chocolate is the greatest. Just watch as this baby
gets a first taste of it. PARENT:
Oh! I know, I know, I know. Okay, one more, one more.
Really big one. Ready? Ready? -(EXCITED MUMBLING)
-(AUDIENCE LAUGHS) Yeah, baby.
Same. And I hope it savors
that chocolate high because I think we all know
the rest of human experience is pretty much downhill
from there. Everybody loves chocolate. That is why we use it
for everything. From beauty products,
to sculptures, to breakfast cereal. Although some arguably love it
a little too much. Like the host
of this cooking show. There's a component,
a substance in chocolate, called phenethylamine. And what that fancy word does
is it slightly elevates your blood pressure
and your heart rate. And they tell me
that it's a sensation that's not unlike having
an orgasm. (CHUCKLES) I don't know,
maybe that's why people love chocolate so much. But, anyway, let me get back
to our step here. -Okay...
-(AUDIENCE LAUGHS) First, what a long, weird way
to tell people that you've never had
an orgasm. (AUDIENCE LAUGHS) Second, I can't believe
there is a chemical that makes your brain horny and they named it
phenethylamine. That is not a sexy name... All of those are free
and available. And just to be very clear,
eating chocolate is nothing like having
an orgasm unless you count the fact
that when boys do it it is messy. But chocolate isn't just
making people horny. It's also making a lot
of money. Globally,
it's a 140-billion-dollar-a-year
industry. And at this point,
you might be sitting at home thinking, "Hold on,
I've seen this show before. This feels like it can be
one of those fun stories, but is it about to take
a turn? I've got a jumbo bag
of fun-sized Snickers that I'm gonna be handing out
to tiny Iron Men, Elsas, and Luigis
in around 48 hours. Are you gonna make that
weird for me?" Well, yes.
Yes, I am. (AUDIENCE LAUGHS) And also, don't bullshit me,
half of that bag is gonna be gone by Halloween,
and you know it. But the reason this
is about to take a turn is, for all the money and happiness
surrounding chocolate, there is one group
that doesn't get to share in it. And that is the farmers
who grow cocoa in the first place. The vast majority have never
even tasted chocolate. And that is something
that reporters and documentarians love
to try and remedy on-camera, and perhaps none
as patronizingly as this. RICHARD QUEST: These farmers
have been growing beans
for decades. They're about to get
their first taste of chocolate. -You have never tried chocolate?
-No. Mmm. QUEST: That is your cocoa! Well, well, to those who thought that I'm
the most annoying version of a loud man on TV
with a British accent, looks like you owe me
an apology! Because that is pretty
condescending right there. "Attention, former subjects, we noticed that
you've not once tasted the fruits
of your interminable toil, so allow me to present you
with a generous gift of a single KitKat. That is your cocoa!" (AUDIENCE LAUGHS) And the reason most farmers
haven't tried chocolate before is they can't afford it. More than 60 percent of cocoa
comes from just two West African countries. Ivory Coast and Ghana. And researchers have found
that in those places, between 73 and 90 percent
of cocoa farmers "do not earn a Living Income." With 30 to 58 percent earning below the World Bank's
extreme poverty line. And there's something
a bit weird about a product so synonymous
for spreading joy and giving babies what's
basically a cocaine rush abandoning those who grow
its key ingredient to grinding poverty. Because even if you had a sense that cocoa production
had issues, the truth is,
from the land it's grown on, to the working conditions
of those who harvest it, it is worse than
you may realize. So, given that,
as we prepare for our annual tradition
of stuffing as much of it in our faces
as humanly possible, tonight, let's talk
about chocolate. And let's start with the fact
that cocoa is mostly grown on very small,
family-run plots. There are about half a million
of them in Ivory Coast and another 800,000
in Ghana. Harvesting cocoa pods
is labor intensive and done entirely by hand. By the way, what's inside them
may not be what you are picturing
in your mind. REPORTER: Ivans Kanube
cracks open the pods to extract the sweet,
slimy bean, which, at this stage,
has a flavor like lychee fruit. Once the cocoa is collected,
it's left to ferment under banana leaves
for about seven days. Yeah. That slimy bean soup
is cocoa. Chocolate starts out
as gluey, white insect larvae that comes out
of a big tree egg. And it's only after
a long process that that fermenting
forest jizz becomes something
more appetizing. Or, in the case of a Mounds bar,
even less appetizing. (AUDIENCE LAUGHS) From the farm,
the cocoa then passes through a number of hands
on its way to the chocolate companies. From the people
who collect the beans, to the warehouses
who store them. Each of whom gets paid
for their part in the chain. But at a certain point, they all feed into
one narrow bottleneck, as this expert explains in an almost unnervingly
soothing way. In a way,
the story of chocolate is a little bit like
an hourglass. Where you have millions
of small holders growing cocoa at the very beginning
of the story, and at the end of the story, you have millions of consumers
eating chocolate. But right at the center
of the hourglass are a handful
of extremely powerful companies. These companies are
the cocoa traders. (WHISPERS) Okay. (AUDIENCE LAUGHS) That was a very good description
of how the industry works from what I can only assume
is a nine-hour YouTube video
entitled... But it is true. The industry is dominated
by just a handful of cocoa trading companies, the most powerful of which
are the so-called big three. Cargill, Barry Callebaut,
and OFI... They then sell to a handful
of major chocolate companies. Mars, Mondelez,
which owns Cadbury, Ferrero, Nestlé, and Hershey. Which together sell over
half the world's chocolate. And when you have
so many farmers and so few buyers, the buyers clearly have
a big advantage. That is why only about
six percent of the value of a chocolate bar makes its way back
to the farmer. And look, I'm not saying
that those companies aren't adding real value
to their part of the process. They are. This Halloween,
try offering a Spider-Man a KitKat or a handful
of sticky white bean larvae, and see which they prefer. But there are clearly
massive disparities in who reaps the benefits of this extremely
profitable industry. And I will say,
there are mechanisms in place to at least help stabilize
the amount that farmers earn. Both Ghana and Ivory Coast
set minimum prices that farmers receive
for their cocoa. The problem is, those prices are not only
difficult to enforce, but crucially,
they're often not enough to cover the costs
of farming. And so, some farmers,
most of whom, remember, are experiencing
extreme poverty, have resorted to trying
to increase their earnings by growing more cocoa on land that is protected
by the government. Which is illegal
because it can do significant environmental
damage. LATIF NASSER: Desperate farmers
supplement their crop by growing cocoa trees
in a protected forest, where the uncultivated soil
is more fertile. And stolen land is, in effect,
free of charge. What's left behind is known
as a skeleton forest. Okay, let's face it,
it was only a matter of time before the phrase,
"skeleton forest" appeared on this show. Because if there is a sinister
combination of words out there, we're gonna stumble over it. Stay tuned!
All those are coming up. (AUDIENCE LAUGHS) But it's not just
environmental damage. There is also significant
human cost in cocoa farming. Which has been well known
for a while. Around 20 years ago,
a series of news stories and a documentary
found that young children, some of whom had been
enslaved or trafficked were working on cocoa farms
that supplied major chocolate companies. And in the wake
of public horror over this, companies didn't do themselves
any favors with how they responded. Just listen to the answer
that this Dutch journalist got when he asked Nestlé
about whether children were involved
in making its chocolate. FRANÇOIS PERROUD: Yes. PERROUD: And it's the same? PERROUD: Yeah. Right. Not to stress the most
obvious point in the universe, but doing something for fun
isn't the same thing as doing it to survive. It's the difference between
being in an escape room and being in a Saw movie. (AUDIENCE LAUGHS) Sure, they're both
equally bad first date ideas, but that is where
the similarities end. And look, I'll give him this,
a lot of child labor does consist of kids working on their own family's
cocoa farms. Though even in those cases, they can be doing so
in hazardous conditions. And also, watch as that
Nestlé spokesperson accidentally walks into
a pretty damning admission of exactly why they might've
been having to do that in the first place. PERROUD: Because they-- PERROUD: Because they don't
get paid enough by Nestlé or by the companies
they work for. PERROUD: Wow. It is very funny to me
that he thought ending that call when he did
was somehow avoiding implicating himself. "Look, the farmers have to make
their children work for them because they are so poor
because they're not paid a living wage by Nestlé,
the company that I-- You know what? Nice try.
You're breaking up. I'm going through a tunnel.
Goodbye! That was a close one.
I think I got away with it." And again, it's not just kids
working on their family farms. Children have been known
to be forced or trafficked to work in cocoa production. And while, because of the nature
of this crime, exact numbers aren't known, one survey estimated
that in Ivory Coast, over a four-year period... While... And back in the 2000s,
outrage over this actually spurred US lawmakers
to take action. First, they considered
mandating labels for chocolate indicating whether or not
it was made with child slave labor. But the chocolate industry
then lobbied that down to a voluntary agreement to eliminate the "worst forms"
of child labor, promising to get it done
by July 2005. That agreement
later became known as the Harkin-Engel Protocol, after the two lawmakers
who had pushed for it. But when the deadline
rolled around, Senator Harkin had
this unfortunate update. Though I was disappointed
that the July 1st deadline was not fully met
by the industry, they have given us
a commitment. A commitment to achieving
a certification system which can be expanded
across the cocoa growing areas of West Africa, and which will cover 50 percent
of the cocoa growing areas of Ivory Coast and Ghana
in three years' time. I am very pleased
with this commitment. Wait, are you? Because if so,
I am genuinely jealous of your infinite capacity
for trusting others. Ah, I see from the first panel
of today's Peanuts comic that Lucy is finally going to
let Charlie Brown kick the football. While I was disappointed
by her actions in the past, it seems that a new day has
brought a sense of integrity within this young girl, and I'm very excited to move
my gaze down the page and see this commitment
honored in-- Oh, she did it again! (AUDIENCE LAUGHS) And predictably,
the companies didn't meet that new deadline either. Once 2008 rolled around,
they kicked it to 2010, then pushed it again to 2020, while simultaneously downgrading
their goal to just getting... ...rather than eliminating it
entirely. Then, they missed
that deadline too. And the companies
almost certainly knew that they wouldn't be keeping
their promises here. As the former head of the
International Cocoa Initiative
put it... And at that point, why bother
setting a date at all? If your friend agrees
to meet you for dinner at seven, then pushes it to 7:30,
then eight, and then finally says, "Be there in 20...
years not minutes," it kind of feels like they
never had any intention of getting dinner
in the first place. And I will say, it is not like
the chocolate companies have done nothing. They all started
flashy looking programs with "cocoa" in their names
that promised to be vigilant about monitoring
for child labor. And they produced
impressive-looking ads featuring happy farmers
and websites showing how carefully they monitor
their supply chain. But the reality hasn't remotely
lived up to the rhetoric. Just last year,
some journalists looked at a map of farms on Mondelez's
Cocoa Life website and then sent a camera crew
to Ghana to check some out. And you'll never guess
what they found. ANTONY BARNETT:
It didn't take long to find children working on a farm
matching the coordinates listed on the Cocoa Life website. The team filmed two young boys,
aged 10 and 11, harvesting cocoa pods using
long sticks with sharp hooks and wearing no
protective clothing. It's true. They went to just
one of the farms listed on their site, a site filled with claims
that child labor is completely unacceptable,
and instantly found child labor. And I don't know what statement
Mondelez can release in the wake of that,
other than maybe... (AUDIENCE LAUGHS) And if you're thinking, "Well,
obviously we can't trust companies to monitor
themselves. That's why there should be
a third party involved." The thing is, those have also
existed for years. Chocolate companies
have long purchased at least some of their beans from third-party organizations
like these, who certified the farmers
who supply them have met certain child labor
and environmental standards. You might have seen one of
these logos on a chocolate bar and felt reassured by it. But while advocates say that
some of these organizations have improved conditions
somewhat, these logos just aren't
the guarantee that you might want them to be. For a start,
while the organizations pay farmers a small premium
for meeting their standards, those premiums might not even
cover the cost of complying with the program. But also, typically... And just watch what happened
when reporters went undercover as chocolate company executives
and visited a contractor who did audits for Utz, one of those third-party
organizations. Because he explains to them
exactly why he is so confident that he won't find child labor
on any farm that he visits. TRANSLATOR: The audit
is announced in advance. You go and visit producers
who know that you're coming. When you go to them, you are not
going to see any children. That is true. Auditors give
advance notice of inspections, which is clearly ridiculous. Because that's never
going to be reliable. If you tell your teenager,
"I'm checking your backpack for cigarettes next Tuesday." (AUDIENCE LAUGHS) Then great news,
you're not gonna find any. Now, I have to tell you,
Utz has maintained that it holds auditors
to the highest standards, although you have just seen
those standards, and I don't know about you, but they didn't seem
that high to me. As for Mondelez, who,
remember, turned out to have child labor at one
of its suppliers in Ghana, it said that it was "deeply
concerned" by these incidents. And okay. That makes two of us,
Mondelez. (AUDIENCE LAUGHS) It also wants you to know that it has a child labor
monitoring system in place to prevent this kind of thing
from happening. Which is very reassuring,
until you remember it only took a documentary crew
one flight to Ghana to prove that that system is,
at best, deeply inadequate. And that is the thing. All these companies will say
that they are concerned about child labor, and that they've spent
a lot of money trying to fix it. By one estimate, as of 2019,
they'd spent more than 150 million dollars
to address this issue. But that's over 18 years,
and while they were collecting 103 billion in sales
annually. Meaning that over two decades,
they've spent just 0.1 percent of one year's sales. And come on! M&M's must have
spent more than that fine tuning exactly how fuckable
the green M&M is. (AUDIENCE LAUGHS) And for all the company's
claims of concern, the fact remains, according to
the US Department of Labor, an estimated... ...work in cocoa production
in Ghana and Ivory Coast. Many of whom are engaged in
dangerous tasks. Or, as the Washington Post
investigation concluded... In fact, the persistence of it
in the supply chain is an open secret. Just watch as some young workers
end up joking about it when asked by visiting
journalists. Oh, yeah. We all fondly remember
being 21. Small frame, child-like voice. Another guy has to constantly
remind you that you're 21. Just classic early twenties
stuff. And I know they were
laughing there, and that clip was honestly
kind of charming, but the truth is, for others, their stories are pretty
harrowing. Like this young girl,
who said that at this point, she'd already been farming cocoa
for five years. TRANSLATOR 2: I was brought here
by my aunt. I was told I would be helping
with the baby, but instead, I only do farming. BARNETT: She says
she wants to go to school, but her uncle can't afford
to send her. TRANSLATOR 2:
My uncle says he struggles
to pay for his own children, so if I join them, he will not
be able to buy the schoolbooks. BARNETT: We asked
if she misses her family. TRANSLATOR 2: Yes. BARNETT:
Do you hear from them? TRANSLATOR 2: No. BARNETT: Have you ever been
back to visit them since you came here? TRANSLATOR 2: No. That is heartbreaking. And the truth is,
there are a lot more clips out there like that one
than there are of kids joking around about being 21. And at this point,
you might be wondering, "Well, what can we
do differently?" And I will admit,
it's really complicated. Child labor in these regions
is caused by a myriad of issues, from poor infrastructure,
to limited access to education. But to a significant extent,
it is caused by poverty. A poverty that is actively
perpetuated by these chocolate companies. And if they really want to
remedy things, a good first step would simply
be to pay farmers more. And companies might balk
at that, saying that they don't set
the price, the market does. But as this advocate points out,
that's a pretty lousy excuse. Every trader and
every multinational I speak to always say, "Oh, but that's
the world market price. We have no influence on that
at all." But you buy a quarter of
the world's cocoa beans. How can you not influence
the price? Exactly. And look,
I am no economist, despite winning
"Most Likely to be an Economist
Based on Appearance" back in preschool. But if you buy that much of
the global supply of something, you definitely have some sway
over how much it costs. And the thing is,
there are models here that companies could look to. Remember that Dutch journalist making the guy
from Nestlé squirm? As a result of that segment,
he actually created his own chocolate company,
Tony's Chocolonely. It works hard to ensure that
its supply chain is free from child
or slave labor. And importantly, it shows that
the people who grow its cocoa aren't in dire poverty. Here is its former
Head of Sustainability explaining how it sets
the price for the beans that it buys. We calculate how big the gap is
between the government set price and the Living Income price, and we pay that gap
as an extra premium. SETH DOANE:
For the spring harvest, the premium was about
63 dollars higher than what's set by
the government, meaning Tony's paid almost
double for each bag of beans. That's great. And it says something that
Tony's were somehow able to pay farmers double
the going rate despite being a mid-size
Dutch cocoa company, whose logo, by the way, looks like a casual dining
restaurant operated by and for clowns. (AUDIENCE LAUGHS) If these guys can do it,
there's frankly no reason why these guys can't as well. And to be fair,
even Tony's own website admits the scale
of the challenge here, saying... And I have to say,
I appreciate that. Because there is a difference
between recognizing how much there is to do
and simply not doing enough. And I know these are companies,
not charities, whose job it is to make money
and not save the world. But that means that they will
only care about this problem exactly as much
as they are forced to. So if we are serious about getting child labor
out of our chocolate, we can't keep relying
on pinky promises and the honor system. We need tough legislation
that requires companies do the right thing. And it's not like this is
the only industry where exploitation in other
countries is the norm. I could just as easily
have done this piece about coffee or palm oil. And we actually talked about
trafficking and child labor in the US farm system this year. But experts themselves say
of chocolate... Look, we have known for 20 years
what the problems are here, and we haven't bothered
to fix them. But if we do, then imagine this. One day, maybe, just maybe,
we can get back to a point where chocolate can once more
give us the simple, uncomplicated joy of this. (EXCITED MUMBLING) Exactly.
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