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A thriving cocoa sector for generations to come The 2014 global Cargill Cocoa Promise report
Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
We launched the Cargill Cocoa Contents
The fast read01
Promise in 2012, to align our 1. The forces shaping our approach 03
Rising demand for cocoa and chocolate
efforts in origin countries and creates fresh opportunities
Partnerships to create the biggest impact
04
06
make a difference to farmers, Helping our customers thrive in their markets 07
their families and their 2. Making progress on the
Cargill Cocoa Promise09
communities. Farmer training
Community support
12
18
Farm development 22
Almost two years on, this report 3. Mapping the way forward
for the Cargill Cocoa Promise26
reveals what we have learnt,
articulates the progress we
have made with our partners
and explores some of the
challenges and opportunities
that the future holds.
The fast read
The challenge All this points towards a need for us to Find out more…
The cocoa and chocolate sector has empower smallholder cocoa farmers so Jos de Loor, President of
a challenge on its hands. Most of the that they can have a viable future with Cargill Cocoa & Chocolate,
world’s cocoa is grown by between six better incomes, cocoa yields and more shares his perspective on
and seven million smallholder farmers. sustainable farming standards. some of the issues that the
Many of them are struggling with ageing industry is facing, and the
connections between them.
low-productive trees, and have limited Our response – the
access to the infrastructure, training or
finance they need to invest in their farms
Cargill Cocoa Promise Jos de Loor explains why
The Cargill Cocoa Promise is our it is important to support
and run a successful business. smallholders; shares his
commitment to improving the livelihoods
Meanwhile, demand for cocoa is rising of farmers, their families and their views on sustainable
steadily, at a rate of between 2% and communities, and, in doing so, securing cocoa; and discusses
3% a year. Cocoa and chocolate a long-term supply of cocoa. how we can work more
manufacturers are looking to source effectively together.
It was introduced in 2012 to align our
more of their cocoa in a sustainable See page 04.
efforts in six origin countries on the
manner. And consumers are increasingly
three key areas that we believe can
interested in where their food has come
make a real and lasting difference:
from and how it has been produced.
farmer training, community support
and farm development.
A real global Ghana
21% of global
cocoa production
presence 6,000
The Cargill Cocoa Promise children provided Vietnam
with improved access 0.1% of global
is making real and lasting to education cocoa production
differences across six origin
countries through: 309
high biodiversity
farms established
Farmer
training
Community Indonesia
11% of global
support cocoa production
Farm 1,000
farmers trained in good
development agricultural practices
Brazil Côte d’Ivoire Cameroon
5% of global 37% of global 6% of global
cocoa production cocoa production cocoa production
20m US$24m 7,850
seedlings paid in premium payments farmers trained in good
distributed for certified cocoa to date agricultural practices
01
Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
The fast read
continued
So far, we have trained over 115,000 Moving forward, it is important that we Find out more…
farmers in good agricultural practices, support our customers as they share the For more detail on the
established nearly 2,550 Farmer Field sustainable cocoa story with consumers. progress we have made,
Schools globally, and through our To that end, we aim for complete visit the Making progress
partnership with CARE International, transparency in our supply chain, and on the Cargill Cocoa
provided nearly 34,000 children in cocoa- will provide clear, documented evidence Promise section of this
growing communities with improved including impact measurements and report. Here we highlight
access to education. Over 50,000 narratives from farmers and our partners the key partnerships and
farmers in Côte d’Ivoire alone have in that country. We will continue to work programs that have made
been certified as sustainable growers. with them to understand their individual this progress possible, as
And in the recent 2012/2013 crop year, needs and leverage each other’s well as the insights and
our partner cooperatives and farmer resources to create projects with real, knowledge we have gained
organizations received US$6.25 million measurable results. as a result.
in premium payments in cash that
Transparency will become even more See page 09.
allowed them to invest and strengthen
important, and a driver of increased
their organizations, their crops and their
collaboration. We believe that consumers
communities. A similar amount was made
are willing to engage and our customers We are constantly looking
available to farmers.
are willing to engage and invest, but to improve what we do and
Our program is global, but we act they need to know how they are making how we do it.
local – using the scale and extent of a difference.
Read Mapping the way
our on-the-ground sourcing network.
We also need to extend the reach and forward for the Cargill
We partner with governments, farming
depth of our work in origin countries – Cocoa Promise to find
communities and NGOs to understand
benefiting even more smallholder farmers out what we are planning
local issues, align with local policies and
and cocoa-growing communities, and to do next with the Cargill
make a tangible, long-term difference.
working with the farmers to deliver more Cocoa Promise, and to
And, crucially, we form close, supportive
advanced training and improve their hear the views from across
relationships with farmers and farmer
profitability further. Our plan is to focus on our business on what the
organizations, providing them with
the origin countries that we already work future holds.
solutions that they can own, and
with, because that is where there are the
giving them the skills and knowledge See page 26.
biggest opportunities to drive change.
to implement programs that will make
a positive and meaningful change. There will always be complex and
constantly evolving challenges ahead
– including political and climate
Looking ahead change. But, through the Cargill
As we strive towards our ambition, we
Cocoa Promise, we’re developing the
are continually adapting our approach
skills and capabilities that will allow
and looking for new opportunities to work
cocoa farmers to be prepared for
more effectively with our partners and,
upcoming eventualities.
ultimately, make a bigger difference.
Our ambition is to accelerate progress towards
a transparent global cocoa supply chain, enable
farmers to achieve better incomes and living
standards and deliver a sustainable supply of
cocoa and chocolate products.
02
1 The forces shaping our approach A perspective from Jos de Loor, President, Cargill Cocoa & Chocolate
Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
The forces shaping our approach
continued
Cargill Cocoa & Chocolate President
Jos de Loor reflects on three themes
shaping our approach to sustainable
cocoa, and explores how working
together can effectively guarantee
a secure future for all stakeholders.
1. Rising demand for
cocoa and chocolate
creates fresh
opportunities
Growing demand represents
an exciting challenge for us all
This is an intriguing time to be in the
cocoa industry, with significant and
571% steady growth in the market predicted.
increase
The biggest question today is how we
can adapt to changing global appetites,
The increase in middle class while maintaining a steady price for
spending predicted in Asia
Pacific by 2030.
cocoa and chocolate. Achieving this
Source: The Organisation for Economic will mean consumers are protected from
Co-operation and Development – OECD sudden changes in the market, and that
we can continue to steadily improve the
70% livelihoods of smallholder cocoa farmers
around the world.
Volume of the global supply
that was grown in West Africa
in the 2012/2013 crop. Alongside a steady growth in demand
One million Source: ICCO from traditional markets, there is a rapid
acceleration in emerging markets such
mt of cocoa as in Asia, with a surge in disposable
Approximately the extra income and a newly discovered taste for
amount the industry is cocoa and chocolate-flavoured products.
expected to have to source
over the next 10 years to China’s economy is expected to overtake
keep pace with current the United States within the next three
growth in demand. years, and “luxury” indulgent products
Source: Industry experts
such as chocolate will undoubtedly
be among those that benefit from this
new spending power. We are already
seeing a swift growth in sales of powder-
containing goods such as chocolate milk,
cookies and cakes.
04
The resulting 2–3% annual rise in demand Revitalizing farms inputs they need to invest in their farms
is good news for everyone in the cocoa Cocoa has always been a crop that and prepare for a successful future.
sector, but it is an opportunity that can offered economic opportunity. But now,
It’s all part of the Cargill Cocoa Promise,
only be leveraged when we overcome the with many farms at the end of their
which we are rolling out in six origin
challenge of ensuring sufficient supply. productive lifecycle, cocoa productivity
countries according to local needs.
Over the next decade, we will need to is under pressure. The majority of
We are all too aware of the unique
source about a million extra metric tons smallholder cocoa farms, particularly in
challenges faced in each region, and
of cocoa. To put this in perspective, that West Africa, were established 20–30 years
although West Africa – and in particular,
is the equivalent of finding the entire crop ago. Cocoa is a tree crop and the trees
Côte d’Ivoire – is where we began our
of Ecuador – one of the world’s larger have aged and become less productive;
efforts, Ghana, Vietnam and Indonesia
producers – every two years. soil nutrient levels have decreased and
are now well on track and we are paying
pests and diseases affect both cocoa pod
equal attention to our partnerships in
Cocoa supplies can be and overall tree health.
Brazil and Cameroon, ensuring that
unpredictable How can we solve this together? By cocoa is a viable crop for the long term.
Cocoa is a vulnerable crop; relying as it working with farmers to dramatically
does on variable weather conditions and Over time, the skills and opportunities
improve knowledge and adoption of good
smallholders with often limited yields living we provide to farmers will improve their
agricultural practices – whether that is
in difficult socio-economic conditions. ability to react to price signals and other
with the appropriate use of weeding and
There is also a great deal of competition inevitable variables. This helps to avoid
pruning techniques or the development of
for land – cocoa has to win out against excessive booms or busts in the market
safer harvesting practices. By improving
other cash crops such as rubber and palm – which have the potential to harm
farmers’ incomes and providing better
– and many origin countries have high everyone in the supply chain, including
services for farmers, their families and their
rates of rural to urban migration. farmers, manufacturers and consumers.
communities. And by providing farmers
In this context, we need to work hard to with the planting materials and other
make sure cocoa farming is sufficiently
attractive to be a viable, rewarding choice Cocoa demand growth
– so that cocoa demand and supplies Tmt US$/Bn
4.500 51.000
well balanced for the future. Cocoa demand World GDP
58% 3.500 38.500
The predicted proportion of Ghanaian
people that live in cities by 2030.
Source: The World Bank
2.500 26.000
46 years
The average age of farmers in our 1.500 13.500
training program in Côte d’Ivoire.
Source: Cargill
500 1.000
1960 1970 1980 1990 2000 2010
05
Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
The forces shaping our approach
continued
Our presence
27 on-the-ground pod
Six upcountry buying
counters travelling over 19 regional sales
stations in Côte d’Ivoire 18 cocoa and chocolate
half a million kilometers offices, helping
and additional buying processing facilities
a year, conducting customers respond
stations in other major around the world
analysis of 90% of the to local trends
origin countries
global cocoa supply
2. Partnerships to create It’s important that everyone working closely with a number of them
the biggest impact realizes their role and acts upon it to reach their goals, as well as providing
Every member of the supply chain – from insight through the knowledge and
Working together strengthens farmers to governmental agencies to experience we have in origin countries.
our capabilities customers and consumers – plays a vital
Although Cargill Cocoa & Chocolate has role in the cocoa sector, and has a unique “ Understanding that regional
been an early adopter of sustainability strength and capability. Cargill’s operations conditions vary widely is key to
principles – working to implement are ideally placed to create links, affect successfully implementing new
practical, sustainable solutions for the change both up- and downstream and programs in origin countries.
past 10 years – we could not affect the drive efficient supply chains and effective When Cargill extended its Cocoa
level of change we see today without our development practices. Promise program into Indonesia in
many partners on the ground.
It is vital that we use our capacity and
2013, together we worked with
In each cocoa-growing region, we extensive on-the-ground sourcing network
local partners on the ground to
have partnered with numerous to support the development of farmer
have the greatest possible impact.”
Manfred Borer – Swisscontact, an
governmental agencies, non- organizations. Being smallholders, many international development cooperation
governmental organizations and private cocoa producers find it difficult to access
partners. For example, we have worked markets and receive a decent income
closely with COCOBOD in Ghana, Le from their crops. Farmer organizations and
Conseil du Café Cacao and IDH (The cooperatives can negotiate in the wider
Sustainable Trade Initiative) in Côte market on smallholders’ behalf; helping
d’Ivoire and Swisscontact in Indonesia, them to adapt to fluctuating prices and
to make sure programs are locally maintain a steady income over the long
relevant and maximize their efficiency term. They are also essential for providing World Cocoa Foundations’ CocoaAction
and effectiveness. is a commitment by leading global cocoa
farmers with the inputs and training they and chocolate companies, including
need to make their farms successful. Cargill, to an unprecedented level of
“ The power of Cargill is that And they can reinvest their profits into coordination and alignment, aimed at
developing and scaling effective farmer
sustainable cocoa is intrinsic to its local communities to improve access to interventions in West Africa. CocoaAction
business model – the company basic services. We believe they will play calls for building a rejuvenated and
knows that it needs to improve a critical role in the long-term sustainability economically viable cocoa sector
through increased cooperation between
farmers’ livelihoods in order to of the sector. It is for these reasons that industry members and governments.
meet the increased demand for developing strong farmer organizations is
cocoa products.” the foundation of our approach, and core
“ We at the World Cocoa Foundation are
Joost Oorthuizen, Executive Director, IDH to our ambition. grateful to the technical and financial
resources Cargill dedicates to working
At the other end of the supply chain, on CocoaAction and industry cocoa
we have a huge opportunity to meet programs throughout the world.”
our customers’ growing appetite for Bill Guyton, President,
sustainable cocoa. And we are already World Cocoa Foundation
06
3. Helping our customers of certified cocoa by 2020. As they move “ I was impressed by how closely
towards this reality, we must help them Cargill works with all of its
thrive in their markets share the story of cocoa as clearly and partners on the ground. They really
Sharing the story of cocoa with as powerfully as possible. put the cooperatives at the very
customers and consumers center of their programs, and are
Today, more and more conscious Transparency is key prepared to adapt as needed when
consumers want to know exactly Because the cocoa supply chain is they see what works and what
where their food is coming from, the complex and diverse, transparency is doesn’t. Visiting the farmers
circumstances of its production and essential to increasing customer and definitely helped me to understand
the impact its purchase will have on consumer activation around sustainable Cargill’s philosophy on
producers. Our customers rely on us to cocoa. We invite customers and partners sustainability and gave me
provide them with the information they to visit cocoa-originating countries, where confidence in their approach.”
need to generate a credible and engaging they can see first-hand our work with Roland Haffke, CFO, Griesson-de Beukelaer
story about the entire supply chain, as well smallholder farmers organizations; visit GmbH & Co.KG
as supply them with sufficient volumes. our buying stations and factories and
Some of the world’s largest manufacturers, enhance their understanding of the way
retailers and local brands have already the supply chain works.
committed to 100% sustainable sourcing
Our Know Cocoa survey asked customers
how much sustainable cocoa they thought
their company would buy by 2020
0%
3% of
respondents
100%
17% of
respondents 10–30%
18% of
respondents
61–90% 31–60%
38% of 24% of
respondents respondents
Source: Know Cocoa Survey, 2013 – a customer survey
conducted by Cargill Cocoa & Chocolate.
47% of
customers
The proportion of Cargill’s
food ingredient customers
that said “operating
responsible supply chains”
was most important to them
in our 2013 customer review.
07
Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
The forces shaping our approach
continued
Making a tangible difference When combined with anecdotal material, Also, farmers surveyed by us across Côte
We see an increasing amount of this is the kind of information that cocoa d’Ivoire said that they had experienced
customers investing a great deal in and chocolate manufacturers can use to average yield increase of 35% thanks to
sustainable cocoa – and plan to do engage and activate consumer demand our Farmer Field Schools.
so even more over the coming years. in a credible way. It means consumers
Companies’ sustainability targets
In return, we need to be transparent can understand the current situation in
reflect an evolution in both customer
about those investments and provide origin countries, as well as the difference
and consumer expectations, and it is
evidence that they are making a positive that they can make by buying sustainable
absolutely vital that we continue with
difference in the long term. products – creating a much more
open communications. By listening to
compelling proposition.
Increasingly, reporting needs to each other’s needs and leveraging each
incorporate clear proof of tangible other’s resources, we can continue to
change. That is why we are building Our goal? Successful farmers engage and make sure that there is a
on the measurement systems we and engaged customers bright and rewarding future for the entire
have already established, developing I am convinced that we are heading cocoa sector.
comprehensive indicators to assess the towards a fundamental shift, and
that there will be a consensus that
impact of our actions and demonstrate Jos de Loor
sustainability is indeed good for everyone.
the improvement generated by President, Cargill Cocoa
programs on the ground. This allows Being more transparent about the & Chocolate
us to track both inputs (such as challenges smallholders face and the
the number of farmers trained and difference we can all make is absolutely
volumes certified) and outputs (such fundamental to this shift.
as improved knowledge of pest and
disease control management and solid That is why I am really pleased to see
entrepreneurial skills). that our programs are making a tangible
difference. Farmers interviewed in 2013
The next step is to consistently measure by LEI, a leading Agricultural Economics
the impact of all of our activities on a Institute, said that the farmer training and
broader scale, using impact assessment certification program in Côte d’Ivoire had
frameworks and the skills of our existing led to better incomes for their cocoa and
in-house research and consultancy team. a renewed enthusiasm for their trade.
Please read on to learn about the
tangible difference the Cargill Cocoa
Promise has made.
082 Making progress on the Cargill Cocoa Promise
Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
Making progress on the Cargill Cocoa Promise
continued
The Cargill Cocoa Promise is supporting three
key areas that we believe can make real and
lasting differences to the cocoa supply chain –
training farmers, strengthening communities
and enhancing farming. Please find below an
update of our key achievements.
Farmer
training
What’s our ambition?
To provide all the farmers with which we work
the knowledge, skills and support to increase
the productivity and profitability of their farms in
a responsible and sustainable way.
What are we doing?
ààRunning on-the-ground training programs to increase
productivity, yields and incomes
ààExtending capacity in farmer organizations
ààUsing certification as a meaningful tool for change
Key achievements
115,825 10
farmers trained on good days of training on
agricultural practices average per farmer
per year
919 1,955
extension agents trained lead farmers have
to deliver training at completed advanced
Farmer Field Schools training
See page 12 to read more
about the progress.
10A thriving cocoa sector
for generations to come.
Community Farm
support development
What’s our ambition? What’s our ambition?
To strengthen cocoa-growing communities and To supply smallholder farmers with the knowledge,
promoting social development by ensuring access inputs and finance they need to make good decisions
to basic services, such as education and healthcare. and run a successful farm over the long term.
What are we doing? What are we doing?
ààWorking to promote and protect the rights of children ààRegenerating farmland through access to
innovative technology
ààImproving access to education
ààEnhancing biodiversity and conservation in
ààIncreasing access to health, safety and wellbeing
local environments
services for families
ààEnabling improved infrastructure and financing
Key achievements Key achievements
US$939,000 34,000 19,000 25.3m
invested in social projects children provided farms applying crop seedlings distributed
in cocoa-growing with improved access protection
communities in 2013 to education
37 8,720 650 342,209
schools and kindergartens farmers trained demonstration plots hectares of farmland
built in cocoa-growing additionally on the established to demonstrate certified by independent
communities issue of child labor appropriate use of certification bodies
pesticides and fertilizers
See page 18 to read more See page 22 to read more
about the progress. about the progress.
Empowered cooperatives
and farmer organizations.
11Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
Farmer
training
Providing farmers with the knowledge,
skills and support they need to increase the
productivity and profitability of their farms in
a responsible and sustainable way.
Why is this important? Good agricultural practice is a Intervention logic
Most of the world’s cocoa comes from prerequisite to benefiting from even
roughly 6 million smallholders who larger yield improvements thanks to Training
are dealing with ageing crops, pests, improved plant material, crop protection Farmers learn basic good
diseases and unpredictable weather and fertilizer. For these reasons, it is the agricultural practices and
patterns. Often their practices and cornerstone of our approach. farm economics through
techniques have been handed down Attending farmer training and farmer Farmer Field Schools
from previous generations – which can business school also helps farmers to
mean that farmers are not getting the form social networks to support each
best performance from their crops that other and share knowledge. Skills
comes with access to latest knowledge
Farmers build knowledge
on best practices.
through repeated attendance
Training farmers in good agricultural of Farmer Field Schools, and
practices provides them with the means through knowledge sharing
to significantly improve their profitability with other farmers
through productivity, while training on
business skills improves profitability
through professional farm management.
Implementation
Farmers apply their
knowledge in the field
2,547
Farmer Field Schools
established
Results
Farmers experience the
919 benefit of their knowledge
and continually implement
extension agents
trained to deliver best practices
115,825 training at Farmer
Field Schools
farmers trained on
good agricultural
practices globally
12Running programs to From training to impact
At Cargill, we believe that it’s insufficient
increase productivity, to do a one-off training. It is critical to run
yields and incomes training programs over the long term to
Extending our reach globally reinforce behaviors and help farmers turn
In close cooperation with our partners, their knowledge into everyday farming
we opened our first Farmer Field School practices. Some of our farmer schools
in Côte d’Ivoire in 2008. Today, our have been running for six years, meaning
network of schools is key to connecting we are making a significant, long-term
with farmers directly and increasing impact in those areas.
the productivity of tens of thousands We are working with research agencies
of farmers around the world. to understand and learn more about how
We have trained over 115,000 farmers in our training impacts farmer behavior.
good agricultural practices. The course An independent study conducted by
LEI, a leading socio-economic research Encouraging leadership and
is intensive, encouraging farmers knowledge sharing in Ghana
to complete new training modules institute in the Netherlands, showed that In Ghana, we have developed
every year. farmers who have been participating over a successful model to enhance
the long term in farmer training programs farmers’ collective knowledge.
Most of our progress to date has Communities nominate one
in Côte d’Ivoire earned on average 53% lead farmer for each group of
been in Côte d’Ivoire – which now has more than recent entrants, and have 30 smallholders. Lead farmers
1,800 Farmer Field Schools, situated higher levels of knowledge and better then receive advanced training
in production areas, close to where on a range of themes, which
farm practices. It also revealed that they take back and share
crops are grown. We are scaling up the compared to the average gross national with their fellow farmers. It is
model in other origin country locations, per capita income in Côte d’Ivoire of our way of getting advanced
particularly in western Africa. In Ghana knowledge to more cocoa
US$2,000, cocoa farmers connected farmers. Working in partnership
last year, we established 80 Farmer Field to the program have a gross household with LBC Akuafo Adamfo and
Schools in partnership with COCOBOD, income averaging US$3,500. with COCOBOD’s extension
Solidaridad and Akuafo Adamfo, a agents, we have trained 114
lead farmers in Ghana. We plan
Licensed Cocoa-Buying Company (LBC).
In Cameroon, there are 223 schools and
“ Before, I produced between 500kg to train another 284 by the end
of 2014, and we have started
7,000 farmers have completed their first
and 800kg from two hectares. similar models in Indonesia,
years of training.
In the last season, I did one ton. Vietnam, Cameroon and Brazil.
With training, we learned to love
“We are pleased to be partnering
our plantations. Before, we hardly
put our feet there. It was a job for
1,955
with Cargill, training farmers laborers. Now we go more often.”
lead farmers have
completed advanced
around the world as they work Dioligbi Guitry, Farmer, Côte d’Ivoire training in Ghana.
towards stronger crops and better Source: LEI impact study
prices. Cargill Cocoa & Chocolate
was an early adopter of
sustainability principles in origin
countries, and has been an
industry leader with initiatives
to ensure a better livelihood and Net income from cocoa
quality of life for farmers and CFA based on length of participation in the support program
their communities.”
Gross household income (CFA)
Hans Perk, Solidaridad – an international
organization creating fair and sustainable 4m
supply chains
3m
2m
1m
0m
0 years 1 year 2 years 3 years 4 years 5 years
Source: LEI impact study on Cargill-Solidaridad program
13Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
Farmer training
continued
Extending capacity in Cargill supports the establishment of
new farmer organizations and empowers
farmer organizations those already up and running, through
Bringing farmers together access to expert agricultural and
creates benefits business knowledge. In total, we have
Efficient farmer organizations give supported 240 farmer organizations – the McDonald’s recognizes
farmers improved access to markets and majority in Côte d’Ivoire – by training their Cargill for supply chain
leaders in management skills and project achievements
infrastructure. They provide a hub where
In March 2014, McDonald’s
farmers can connect with one another, development. We have also worked with honored Cargill Cocoa &
build up their networks and share Socodevi, a network organization for Chocolate in its “Best of
cooperatives, and the government in the Sustainable Supply” report.
knowledge. By strengthening farmer
organizations, we are supporting vastly southwest region of Cameroon, to set up
improved economic and social conditions eight cooperatives.
for farmers – and without them, reaching
out to smallholders individually would be
almost impossible.
Improving livelihoods through holistic farmer training
Our farmers’ training is broad, giving farmers the variety of skills needed to create a multitude
of positive effects on cocoa farming productivity and farming profitability.
Farmer training
Input Outputs Results Impact
Improved
soil fertility
Improved tree
density and Higher cocoa
architecture yields
Good agricultural Improved Implementation Increased cocoa Higher cocoa
practice knowledge of GAP of GAP farm profitability farmer income
Reduced pests and
disease pressure
Better
cocoa trees
Improved cocoa
quality
Farmer Farmer business Increased Efficient use Optimized Non-trained (New) farmers
entrepreneurial farmers influenced invest in
training schools skills of inputs production costs cocoa production
by positive
examples of training
Social and Improved Implementation Community New generation
knowledge on cocoa farmers
health issues social issues of social practices development emerges
Professional
farmers community
development
Third party Premium Higher cocoa
certification payments income per MT
14The Coop Academy in Côte
d’Ivoire – empowering
cooperative leaders
In order to be successful, farmer organizations need
the skills to manage operations and finances and to
develop their business.
The Coop Academy is a unique, industry-first
program that provides cooperative leaders with the
knowledge to improve the day-to-day running of their
cooperatives and, crucially, enables them to develop
the skills to grow their business successfully. In doing
so, they can provide better support to farmers and
make cocoa supplies more sustainable.
We started the program in 2013 with ten of our
partner cooperatives. The leadership course, which
we ran with our partners, was offered to four people
in each cooperative – including the Managing
Director and the CFO.
The program combines 28 days of intensive
classroom training with a year of personalized on-
the-ground coaching, to help each cooperative to
develop and implement an improvement plan.
The Coop Academy runs in partnership with IDH,
TechnoServe, IFC (International Finance Corporation)
and INPHB (Institut Nationale Polytechnique
Houphouet Boigny).
Thanks to the skills I have
learned at The Coop Academy,
we’ve been able to apply an
annual budget, implement a
procedure book and create a
The Coop Academy builds development plan for the future.
Yao N’Dri Pascal, President of the
on developing both soft and ECASO Cooperative in the Soubre region
hard management skills of Côte d’Ivoire
through training and hands-
on coaching. And it’s a model
that can be replicated very
quickly if successful.
Désiré Bankole, the Country Director
of TechnoServe in Côte d’Ivoire
15Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
Farmer training
continued
Using certification by our customers to farmers and farmer In 2013, we conducted a study of 81
organizations. This provides a financial cooperatives in Côte d’Ivoire, to better
as a meaningful tool reward for adopting more sustainable understand how farmer organizations
for change practices. The remaining third of the use these funds. Out of the premiums
Certification is not only an incentive premium is used for various investments received, 90% was used to improve
to encourage farmers to embark on to improve the programs, including the development of the cooperative, its
the training programs. It provides program development, training materials, members and/or the local community.
independent assurance and validation infrastructure support and monitoring
for consumers that the products they This is very encouraging feedback, and
and verification.
purchase are made as a result of farmers strengthens our belief that supporting
and cooperatives working responsibly Since the launch of our certification cooperatives in the development
and sustainably. programs, a total of US$25 million has of cocoa communities is critical to
been made available in cash premium making progress.
Although there are differences per origin, payments to farmers and farmer
our programs pass on an average of two- In the 2012/2013 crop year, our partner
organizations globally.
thirds of the certification premiums paid cooperatives received US$6.25 million as
their part of the total certified premium.
On top of, a similar amount was made
available to farmers.
This map summarizes the reach of
our certification programs. In the
2012/2013 crop year, participating
farmers produced over 90,000 metric
tons of certified cocoa.
Côte d’Ivoire
50,395
farmers certified since start
of the Cargill Cocoa Promise
Brazil Ghana
16
farmers certified since start
13,508
farmers certified since start
of the Cargill Cocoa Promise of the Cargill Cocoa Promise
16How cooperatives invest their cash incentives To validate our programs
% and provide transparency
80 we work with major
2010/2011 2011/2012 2012/2013 independent certification
bodies: UTZ Certified,
Fairtrade International
and Rainforest Alliance.
60
40
20
0
Strengthening Farmer Community Administration Others
cooperative services projects and governance
infrastructure
Source: Cargill
Vietnam
3,708
farmers certified since start
of the Cargill Cocoa Promise
Indonesia
Cameroon
1,000
4,500
farmers certified since start
farmers certified since start
of the Cargill Cocoa Promise
of the Cargill Cocoa Promise
17Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
Community
support
Strengthening cocoa-growing communities
and promoting social development by ensuring
access to basic services, such as education
and healthcare.
Why is this important? Working to promote “ Working with Cargill and
Many cocoa-growing regions face socio- and protect the rights ANADER, we’ve been able to
economic challenges, with communities ensure that thousands of farmers
lacking access to basic amenities.
of children get specialist training on child
The challenge we face is complex, as
Providing these services has a significant labor issues to thousands of
the root cause of child labor issues is
impact on the quality of life of farmers, their farmers. Cargill’s Farmer Field
often poverty. For this reason, it is vitally
families and their communities. Schools gives us, and the
important that we continue to improve
ANADER agents we train,
Strong, cohesive communities also cocoa growers’ productivity and incomes,
unrivalled access to farmers in an
facilitate knowledge sharing and support as well as overall community wellbeing.
established learning environment.”
among smallholders. Improved livelihoods Creating access to education provides
Nick Weatherill, Executive Director,
and wellbeing mean that farmers are children with better opportunities that International Cocoa Initiative (ICI)
more likely to invest in their farms. can avoid the risks of child labor. See
And in prosperous communities, younger “Educating young people” in this chapter
In Côte d’Ivoire, 425 extension agents
generations are more motivated to stay for more information on how we are
received four days of intensive training
and work in the cocoa sector, rather than bettering educational opportunities.
from ICI on the issue of child labor
migrate to the city.
8,720
and sensitization, equipping them with
Farmer organizations play a crucial role in the skills to effectively train farmers.
community development. As independent In partnership with the International The project will reach more than 70,000
Cocoa Initiative (ICI), 8,720 farmers were
organizations they can respond to cocoa producers before 2016.
trained in 2013 to protect and improve the
community needs and sustain long- rights of children as an integrated part of
term change by investing their profits in our farmer training approach. In total
70,000 will be trained.
social projects.
In addition, we need to raise awareness of
child labor issues and children’s rights in
farming communities. The most effective
way for us to do this is through farmer
training. That is why we have worked in
partnership with the International Cocoa
Initiative (ICI), a leading organization
addressing child labor issues in West
African cocoa-growing communities,
18 to develop a specific training module.Supporting cooperatives to
invest US$2.4m in education
and healthcare
“ The course is very rich and In 2014, we launched a new US$2.4m partnership with “ As a cooperative, we are
committed to playing a
comprehensive and we really go CARE International and the Conseil du Café-Cacao
development role within our
deep into the problem. We first in Côte d’Ivoire to deliver improved education and communities. Thanks to the
had an overview of the various healthcare for 14 cocoa-growing communities. support of the Le Conseil
du Café Cacao and Cargill
national and international laws We have worked with cooperatives to conduct we are able to co-invest in a
relating to child rights and child assessments on community needs and discuss school package, which will
protection. We were then how they would like to invest their premiums.
have a decisive impact on
the future of children of the
presented with the causes and In general, 50% of the cost of their chosen project Sahue community. Thanks to
consequences of child labor, and will be funded by project partners, and 50% by the what we have learned from
finally analyzed how to tackle cooperative – using premiums generated from selling
CARE, we would like in the
coming years to multiply
the issue.” sustainable cocoa. these types of initiatives
Christiane Koudio Agoussi, to make the best out of
Farmer Field School trainer and participant All of this has taken place in agreement with the the cooperative part of the
of the ICI training course
Ivorian Ministry of Health and Ministry of Education, to certification premium for the
benefit of our members and
ensure alignment with Côte d’Ivoire’s national policies. their families.”
An impact study conducted by LEI found That means providing not just the buildings, but also Georges Bitty
all of the necessary rooms. For example, a school Souho, President
that farmers who have been participating
of Cooperative CAMENE
over the long term in our farmer training would include a teacher’s office, canteen and latrines.
program in Côte d’Ivoire are more aware
The aim is to provide 1,500 children with education and “ Since our global partnership
of labor and children’s rights than those began, Cargill has embraced
improve access to dispensary clinics for 25,000 people.
who have been participating for a shorter CARE’s emphasis on
We are in the process of selecting more cooperatives
period of time. Although we realize that having the people in the
to benefit from this program so that we can support communities that we serve
we still have a long way to go, these
them in making a positive difference in their communities. taking a leading role and
statistics give us confidence that training identifying problems and
is having a positive impact. This project is running alongside The Coop Academy; developing solutions that
helping newly trained cooperative managers to take they can sustain themselves.
This project does just that
the lead on how their money is invested to improve and will help CARE to reach
their communities. more cocoa farmers than ever
and benefit more children
You can read more about than ever in Côte d’Ivoire.”
Sidibe Balla Moussa,
The Coop Academy on page 15.
Managing Director CARE,
Côte d’Ivoire
19Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
Community support
continued
Educating young people ààIn Vietnam, we have built seven Strengthening communities
Education is a cornerstone for schools in cocoa communities at a local level
development. Thriving communities start where we operate. Each community has different needs,
with educated individuals. Illiteracy and and it is important that we give them the
poor education are common in many of Healthy, happy financial support and guidance required
the rural communities that we source to develop based on those needs.
cocoa from. Basic education can
communities We work with local partners – including
improve their quality of life, stimulate Safety and wellbeing services the government, NGOs and specialist
the development of local business and Besides education, it is important that institutions – to make sure programs are
markets and provide more opportunities we provide access to health, safety appropriate. And we regularly consult
in cocoa-growing communities. and wellbeing services, as many of the with the communities to develop and
communities we work with struggle with implement “Community Action Plans”,
We have helped improve access to basic which set out what the community most
the effects of poor nutrition and infectious
education for 34,000 children in cocoa- needs and how those needs are going
disease. As well as having a direct benefit
growing communities. For example: to be implemented. 110 communities in
on the livelihoods of people in cocoa-
ààIn Ghana, we have distributed growing communities, access to these Ghana have benefited from Community
100,000 school books in cocoa- services helps safeguard the community Action Plans, as have 14 communities in
growing communities, and trained for future generations of cocoa farmers. Côte d’Ivoire, with another 86 planned by
850 teachers, to improve their the end of 2017.
Again, we are using our farmer training
capabilities. We have also introduced Cooperatives and farmer organizations
model as an efficient and effective way
our first Zubabox – a converted play a key role in community development
to reach as many smallholder farmers
solar-powered ship container filled – because their profits are shared
as possible. We have trained over 99
with 20 computers. This will be used among their members and invested
extension agents in Indonesia to deliver
to educate 350 children and improve in local communities.
training on good nutritional practices.
their computer literacy skills
So far, they have reached 3,971 farmers.
ààIn Côte d’Ivoire, we have donated
18 laptops to the National School
of Agronomy (Ecole Supérieure
d’Agronomie) in Yamoussoukro
Working with CARE to Over the next three years, we
improve the livelihoods of are aiming to further improve
49,000 Ghanaians child education and nutrition in
We have been working with Ghana through:
the NGO International in Ghana
since 2006, and estimate that Training of 850
àà
the partnership has already teachers in Ghana in
positively impacted around nutritional guidance
49,000 people living or working Working with over 3,000
àà
in cocoa communities. parents to improve their
Today, we are present in 110 knowledge on nutrition
communities in the Central, Helping 12,500 Ghanaian
àà
Ashanti and Brong Ahafo students to graduate from
regions to support about 6,000 primary school
farmers, their families and
their communities. And improve education
levels through:
The results so far are positive.
We facilitated the graduation Getting more children to
àà
of over 6,000 children from attend school, and using
primary school by the end of daily follow-ups to ensure
2012. We have also reached they are attending
out to 1,500 parents, through
parent teacher associations Improving training
àà
and community groups, to for teachers
improve children’s education Engaging with parents
àà
and nutrition. through parent teacher
associations and school
management committees
20Providing joint
opportunities for
mothers and children
We are working with The World Cocoa Foundation (WCF) on
a project to improve opportunities for mothers in Côte d’Ivoire,
through the CCDF (Cocoa Community Development Fund).
During the pilot phase of this project, 30 women from the
community of Anno, all of whom have children in school, were
awarded grants of US$250 to undertake a small business project
and to cover yearly school fees for the coming academic year.
Each one of them has received training on basic business skills,
basic accounting, budget preparation and business planning.
The training also covers children’s rights and mitigating the
spread of HIV/AIDS and malaria.
The women have now started their small businesses. 18 are
engaged in agricultural activities (producing food crops and
vegetables), seven are involved in petty trading, four are running
restaurants and one is running a tailoring business.
“ Since I received the scholarship and the three-day small
business training, my life has completely changed. I have
better self-esteem and I am more confident running my
business, the proceeds of which will help my husband
and I to support my daughter to complete her studies.
She is now 11 and thanks to God she will reach
secondary school next academic year. In our community,
girls used to have few options.”
Boka Nahou Roseline, a mother who benefited from the CCDF
34,000
children provided with
improved access to
education
37
schools and
kindergartens
built across Côte
d’Ivoire, Indonesia,
Vietnam and Brazil
21Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
Farm
development
Supplying smallholder farmers with the
knowledge, inputs and finance they need to
make good decisions and run a successful
farm over the long term.
Why is this important? Regenerating farmland Using our network
In many cocoa-growing regions there The majority of cocoa farms, particularly todistribute inputs
are old and unproductive farms, which in Côte d’Ivoire and Ghana, are between With the right investment, cocoa
are often exposed to pests and disease 20 and 30 years old. Rejuvenating farms productivity can increase significantly.
– and yet most farmers have no access with young, productive, disease resistant Already, in Côte d’Ivoire, we have
to high-yielding, quality and pest and seedlings that respond better to change seen that yields of over 800–1,000
disease resistant planting material to of inputs such as fertilizer and crop kilograms per hectare are achievable in
begin farm rehabilitation. protection is essential to increasing a smallholder context. In many cases,
yields. We have distributed over 25 million this is a 100% increase of current yields.
There is also declining soil fertility and
seedlings to farmers globally. A large The appropriate use of inputs such
a lack of access to and knowledge
proportion of these have been planted as fertilizers and crop protection help
about the appropriate application
in the Pará region of Brazil – where farmers to maximize current cocoa yields
of fertilizer, alongside poor land
seedlings are supporting growth in cocoa without compromising the future of their
management practices.
production. The rate of growth of cocoa farms or local environments. We help
Ageing crops, reduced soil fertility, pests production in the region is now around them to gain access to the inputs, as well
and disease are all threatening cocoa 10% annually. as the financing, for fertilizers and crop
production. Managing these conditions, protection, to invest in their farms and
preserving the environment and
improving farm resilience are vital for the
Enabling better plan for the future.
long-term success of the sector. Thriving, access to financing Cargill’s extensive on-the-ground
productive and profitable crops will help and farm inputs networks include not just partnerships
ensure that the next generation will want Demonstration plots offer space for with farmer organizations, but also
to continue working as cocoa farmers. farmers to receive training on the buying stations in all the major cocoa-
appropriate use of fertilizer and crop growing regions. Together, these form
protection, and access the materials an efficient delivery model to store and
they need to improve farm productivity. distribute and provide access to fertilizer,
We have set up 650 demonstration plots crop protection and planting materials
across Brazil, Côte d’Ivoire, Cameroon, to farmers.
Ghana, Indonesia and Vietnam. All these projects foremost serve to
Of the 650 demonstration sites, 25 have prove their effectiveness and scalability.
nurseries, where farmers can access Our farm development programs
seedlings and learn how to look after are always closely coordinated with
young seedlings. governmental policies and approved
by the relevant agencies.
22+
fertilizer
+
high
+ potential
crop planting
+ protection material
good
Usual agricultural
farmer practices
practices
+/- 350kg/ha >1,000kg/ha
Partnering with Syngenta exposure. And we give farmers
to protect crops in Côte the flexibility to pay as and when
d’Ivoire their harvest is delivered to the
In 2012, Cargill and Syngenta cooperative. The program also
began a partnership to help offers access to high-quality
cocoa smallholders in Côte protective equipment, spraying
d’Ivoire improve their yields and machines and crop protection
revenues through better crop product storage.
protection. The partnership has
been named Yiri+, which means All of this is complemented
“tree” in a local Ivorian language. by practical on-the-ground
training, which covers pest
The pilot phase of the project has and disease recognition and
been a great success. Over 750 management, as well as the safe,
spray applicators have been efficient and appropriate use
trained in the safe and efficient of spraying machines to apply
Average increase
use of crop protection; with 100 crop protection. The training is
in income for
ANADER (local Government supported by a dedicated manual
farmers of
partner) trainers able to deliver which uses simple pictures to aid
US$380 per
the training. We have also learning and has been approved
hectare per year
distributed over 400 farmer by Le Conseil du Café Cacao
training kits and established and the Department Protection
43 demonstration plots. des Végétaux et du Contrôle de
650 la Qualité.
demonstration “ I saw an improvement These results of this pilot project
are preliminary, but we are
plots established in my cocoa crops after pleased to see the project is
25.3 to demonstrate
appropriate use
Farmer Field School,
and now the Yiri+
moving in the right direction and
we are now expanding it. We are
million of pesticides and
fertilizers training has improved aiming to add this program to our
farmer training in Côte d’Ivoire,
seedlings my yields even more. delivering it to 70,000 farmers
distributed
It means that I can plan a year through Cargill’s 1,800
Farmer Field Schools in cocoa-
for the harvest ahead
>19,000 and improve the way
growing regions.
farms applying that I run my farm.”
crop protection “ This is a mutually
40%
Farmer on the Yiri+ program
beneficial partnership,
Average yield in
contributing to both
Most importantly, the program the Cargill Cocoa
the treated plots is delivering positive results for
increased by up farmers. Average yield in the Promise and Syngenta’s
to 40% demo plots increased by up to Good Growth Plan.
40%, resulting in an average We are really pleased
increase in income of US$380 per
hectare per year. For an average that the program is
Ivorian farmer, who owns three already having a
hectares, this would translate tangible impact for
into US$1,139 of additional
annual income. farmers – we have
Working through our partner
certainly achieved more
cooperatives, the program with Cargill than either
gives farmers the opportunity of us would have alone.”
to invest in crop protection Jan Suter, Head of Africa
products themselves. and Middle East, Syngenta
Providing Syngenta with such
direct access to farmers means
that products can be offered
at a competitive price while
limiting the company’s financial
23Cargill Cocoa & Chocolate A thriving cocoa sector for generations to come
Farm development
continued
Encouraging appropriate use Enabling the efficient usage
of farm inputs of financial assistance
We have provided guidance to farmers Credit schemes can provide farmers
at over 15,000 farms in Vietnam on with the financing to invest in the
the appropriate use of crop protection inputs needed to optimize their farms’
through our Farmer Field Schools. production. In 2013, we introduced a
And in Cameroon, 880 farmers have pilot input credit scheme in Ghana, to Using new technologies
received training on the safe use of provide access to agricultural inputs and and techniques
crop protection in a Syngenta-Cargill application equipment which farmers Recent studies estimate that
more than 65% of Ghana’s
partnership and partner cooperatives. can pay back as they receive money for rural residents have access
their harvest. So far, 116 farmers have to mobile phones. That is one
But our biggest project to date has been of the reasons that we have
benefited from an input credit scheme.
the Yiri+ program – a crop protection partnered with Hershey’s,
The materials they most commonly COCOBOD and the WCF
initiative run together with Syngenta and
request financing for are fertilizers, to support their CocoaLink
partner cooperatives. Please see previous program. This first-of-its-
insecticides and fungicides.
page for the Yiri+ case study. kind program uses mobile
In Brazil, financing systems for fertilizer technology to deliver practical
information on agricultural and
have been set up for farmers in Bahia, social programs to rural cocoa
in combination with training in good farmers and enables them to
agricultural practices. Overall, the ask questions and provide
feedback. We have helped
program has more than doubled by rolling out the program to
farmer yields. 6,000 farmers in Ghana.
Securing the next
generation of cocoa trees Vietnam
100
In Vietnam, we are aiming to
reach yields of between 2 and
2.5 metric tons of cocoa per
hectare, per year. And we have
established 100 high-yield
Brazil
20
demonstration farms to show
farmers how to reach this level
of productivity.
million
Indonesia
Over the last four years, we
have provided 20 million hybrid
750
We have established an initial
seedlings to 2,000 farmers 25 nurseries, each housing more
through a partnership with than 2,000 seedlings. And we
CEPLAC, Brazil’s federal cocoa Côte d’Ivoire Ghana have trained 750 farmers in
1.6 125
research and extension institute. cocoa rehabilitation.
million
We have distributed 1.6 million
We have established 125
demonstration plots to distribute
seedlings and other planting
materials amongst farmers.
cocoa plants with the support of
ANADER, the national agency for
rural government.
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