Bitter sweet returns from cocoa? Maybe not for much longer

For investors concerned about the moral repercussions when investing in certain types of agriculture, new research this week could help them sleep easier.

Ecclesiastical Investment Management, looking specifically at cocoa production, said the pros of investing in businesses which had a history of looking after their workers outweighed the cons.

The socially responsible investment (SRI) firm, whose study focused on a region of West Africa which accounts for 70% of cocoa production, is well aware of the plight of cocoa industry workers, and it notes that slave child labour is widely used, as are dangerous pesticides which cause harm to humans.

However, it said that it was better to invest in firms which were making an effort to maintain and improve their incomes and practices, rather than shun the sector completely.

Ecclesiastical's senior SRI  analyst, Ketan Patel, said: 'We looked at a business which had demonstrated a long record of concern for cocoa farmers and was continuing to make a concerted effort to maintain and improve its incomes and practices. We can do more good by investing in such companies.'

So for those people whose conscience prevented them from previously investing in agriculture, the picture is changing, and your investment could help transform the industry.