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Unequal Harvests: The Cocoa Paradox
The cocoa supply chain exhibits substantial inequality, with major trading companies like Cargill using financial tools like futures contracts to mitigate risks associated with production fluctuations. This allows them to secure profits even in the face of challenges such as crop diseases and unpredictable yields. In stark contrast, cocoa farmers lack the means to hedge against poor harvests and often hold limited negotiating power. While corporations like Lintz, Mondelez, Nestle, and Hershey's report significant profits—amounting to billions—the farmers who produce their raw materials remain vulnerable and economically disadvantaged.