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Baseline Assessment: Assessing working conditions in ofi’s cocoa supply chain in Ghana

As part of the annual due diligence cycle for member companies, the Fair Labor Association (FLA) conducted an independent external assessment (also known as a baseline assessment) of Olam Food and Ingredients’ (ofi) cocoa supply chain in Ghana as required by the Fair Labor Code and Compliance Benchmarks for Agriculture. This assessment, completed between Nov. 14 – 20, 2022, documents ofi’s labor standards and practices and compares them to FLA’s Principles of Fair Labor and Responsible Sourcing for Companies with Agricultural Supply Chains, which uphold and protect workers’ rights in agricultural supply chains.

The study area was selected based on ofi’s primary sourcing regions for cocoa in Ghana. FLA conducted a field assessment in the central region of Ghana in three communities (Wamaso, Akutuase, and Jakai) within two districts (Assin Fosu and Twifo Atii Mokwo).

For this assessment, FLA interviewed ofi’s internal monitoring system (IMS) staff, as well as 120 farmers, four workers, and 10 key interviewees. FLA also held focus group discussions (FGDs) with stakeholders and community members for additional information on labor issues. A total of 168 people participated in a labor risk assessment survey to verify labor practices against FLA’s Workplace Code of Conduct, which defines labor standards that aim to achieve decent and humane working conditions. The code’s standards are based on International Labor Organization (ILO) standards and internationally accepted good labor practices.

Key identified risks identified in ofi’s Ghana supply chain include:

  • Employment relationship;
  • Non-discrimination;
  • Forced labor; and
  • Health, safety, and environment (HSE).

Following these findings, FLA’s assessors recommended the following actions for ofi:

  • Support communities to increase access to education and health services;
  • Facilitate engagement between communities and teachers to pass a community-level by-law to prevent farmers from taking their children out of school for work;
  • Intensify education and continue interactive discussions with farmers and workers on the FLA Code of Conduct;
  • Encourage farmers to use of protective equipment;
  • Direct ofi purchasing clerks (PCs) not to buy beans from farmers when no immediate payments can be made; and
  • Strategically engage with national-level stakeholders to continue improvements in systemic issues affecting workers in Ghana’s cocoa farming industry.