Baking&Snack - November 2016 - 60

CHOCOLATE

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from cocoa powder, are garnering publicity regarding
investments by large end-users - namely bakers and
confectioners - that assist with applying sustainable
practices to secure quality raw materials and operate
more efficiently. The goal is to help change the future of
cocoa farmers by professionalizing and intensifying the
agricultural practices that are the foundation of a wellrun, high-yield and profitable cocoa farm. By enabling
farmers to create sustainable businesses, industrial users
of cocoa and chocolate believe they will ensure ample
future supplies of cocoa while increasing incomes and
securing livelihoods for tomorrow's cocoa farmers.
This is necessary because the World Cocoa
Foundation (WCF) predicted the global demand for
chocolate will continue to grow as discretionary income
rises in developing markets such as Brazil, China and
India. According to Barry Parkin, chairman of WCF and
chief sustainability and health and wellness officer, Mars
Inc., McLean, VA, the cocoa value chain faces a number
of challenges, and it is essential that action be taken.
"Farmers [in developing regions] often have limited
knowledge of modern farming techniques and farm
management skills as well as limited access to finance
that would allow the purchase of input supplies and
quality planting material," he said. "Other challenges
that impede productivity include aging trees that are
past their peak cocoa pod production, decline in soil fertility and pests and disease that attack cocoa trees."
Further, the price farmers receive for cocoa beans varies significantly across regions. This can be attributed
to numerous factors, including different regulatory environments, access to market information, use of individual sales vs. leveraging the power of group buying,
understanding of cocoa quality requirements and transportation costs.

Meeting the need
A number of suppliers, as well as bakers, have independent programs to provide additional assistance to
farmers and their communities. For example, Deerfield,
IL-based Mondelez International, Inc., the world's largest chocolate company and buyer of cocoa, started its
Cocoa Life sustainability program in 2012. This is a

60 Baking & Snack November 2016 / www.bakingandsnack.com

long-term, $400 million investment to empower 200,000
cocoa farmers and reach more than a million community members by 2022.
In February, Mondelez published its first progress
report on the program. To date, it has reached 76,700
farmers in nearly 800 communities across six cocoagrowing regions: Ghana, Côte d'Ivoire, Indonesia,
Dominican Republic, India and Brazil.
The report provides measurement data from Cocoa
Life's first impact evaluation in Ghana, where the program began as the Cadbury Cocoa Partnership. Initial
results show Cocoa Life farmers' incomes tripled since
2009, which is 49% more than control communities
measured. Likewise, cocoa yield increased 37% more
than in the control communities.
"This progress report brings together the voices of
people in cocoa communities across all our origins and
demonstrates how the program is working together with
local governments, our suppliers and partners to build
lasting change on the ground," said Cathy Pieters, program director.
Today, 21% of Mondelez' cocoa is sustainably sourced.
The company carefully communicates this via its website, as well as on select food packages, with some brands
now displaying the Cocoa Life logo.
"Consumer skepticism regarding a company's sustainable efforts prompts consumers to seek solid proof
of their legitimacy," Mr. French said. "Make sure transparency is front and center because consumers evaluate
company claims and messaging with more scrutiny."
César Melo, president of global chocolate for
Mondelez, said, "Cocoa Life connects the beginning and
end of the cocoa supply chain so farmers can see how
their cocoa crop contributes to the chocolate we enjoy.
As Cocoa Life grows and expands its reach, we will continue to be transparent about our measures for success
and key learnings, and share the progress we are making
against our goals."
This is the type of progress consumers are willing to pay more for. It's also the motivation behind
Chocovision, a biennial conference created in 2012 targeted at senior business leaders and key stakeholders in
the cocoa, chocolate and retail industries. The goal is to

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Baking&Snack - November 2016

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