ECOM Agroindustrial INTERNAL AFFAIRS SECOND QUARTER 2021
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Contents • ECOM’s Climate Pledge • Women Capacity Building and Commitment to Preventing Child Labor • A Better Future • Participation Of ECOM CIV In A Charitable Action For The Benefit Of The Children Of The AIFCI Social Center In Anoumabo. • EcomPrint Project Progress • Connecting with P2P • Cacao Latitudes, New Specialty Cacao Company • Maison Duplanteur Bean to Bar Chocolate & The World’s Best Restaurant • AMSA Inaugurates The Generating Center Of Leaders In Café De México • Analysis: A New Vision for Restoring Warbler Wintering Habitat • ECOM Ghana Goes Green With ‘Green Ghana Day’ • ECOM Always In Advance • ECOM West Africa Values Journey: • How Widespread Employee Engagement Aims to Transform Culture While Building Capacity for Change • Crop Doctor Ghana: Getting All Our Retailers On Board • Congo’s Volcanoes • The Flip Side of the Coin • Learning as our Unique Selling Point (USP) • La Escuelita Niño Heroe Francisco Marquez • In Memoriam • ECOM in the News
“As a family company with a long history, there is a strong organizational culture of responsibility ECOM’s Climate Pledge to improving and ensuring sustainability for the next generation. Becoming a Net Zero company Letter from ECOM Management is a complex task that requires cooperation and Today we want to invite you to build a better future with us. collaboration across the industry, and ECOM intends The Climate Crisis has created systemic problems to the environment and demands fundamental behavioral change. Companies, individuals, and to lead in this effort.” communities around the world must align and take a genuine stance to protect future generations and ensure the preservation of human life on Earth. ECOM is committed to act accordingly on this path, one that will surely bring new challenges to the supply chain, production processes, business and individual practices, which must be tackled with a sense of urgency. ECOM pledges to have Net Zero emissions in their value chain by 2050 and sign up to the Science Based Target initiative (SBTi). This science-based target will contribute to the Paris Agreement’s goal of limiting the global temperature rise to 1.5 degrees centigrade by 2050. Our emissions reduction José “Pepe” E. Esteve Alain Poncelet Teddy Esteve scope includes our direct operations and extends further to the entire supply Chairman of the Board Group Deputy CEO CEO Coffee & Chief Carbon Officer chain (scope 1, scope 2, and scope 3, according to the Greenhouse Gas Protocol). Becoming a Net Zero company is a complex task that requires cooperation and collaboration across the industry, and ECOM intends to lead in this effort with experts, suppliers, clients, and various other stakeholders in our value chain. We will also continue to strengthen our supply chain by helping the farmers we work with become more resilient to climate change and the challenges global warming poses. One of our aims is to provide our customers with lower footprint commodities (CO2eqkg/product) and eventually deliver carbon neutral commodities. We are already committed to improving the environment in which we operate. All members of the value chain share the responsibility to improve environmental practices and implement greenhouse gas impact reductions, such as agroforestry, making efficient use of natural resources, proper recycling and disposal of waste and limiting the excessive use of pesticides and deforestation. As a family company with a long history, there is a strong organizational culture of responsibility to improving and ensuring sustainability for the next generation. We commit to identifying and allocating the resources needed to contribute to the global goals for emissions reduction and thereby regenerate the environment for future generations. As a leading global commodities merchant and supply chain management company, we pledge to join the combat against climate change.
Women Capacity Building and Commitment to Preventing Child Labor ECOM in Vietnam has been active in sourcing Arabica and Robusta coffee from ethnic minorities located in remote villages in the Central Highlands region. Even though there are no incidences of child labor observed by our field agronomists, or reported in the literature for this specific area, precautionary measures are needed in times of decreasing coffee prices and living incomes while labor & farming input costs keep increasing. It generates further reliance on family labor versus hired labor which represents a We see it as a targeted but impactful investment which risk for children to attend farms along with their parents rather than attending school, especially when doesn’t need to be rolled out to our whole supply base. It school infrastructure is weak. rather be “demand-driven” following assessment of areas Since 2013, ECOM Vietnam has built one new nursery school every year - with the financial support of where school facilities are absent. For the broader farmer Costa & ECOM Foundations - among these more vulnerable ethnic groups we source coffee from. In total network, we rely on certification assurance mechanisms 8 schools/kindergarten were built to date with the guarantee from local authorities to invest in human to track child labor via our annual field inspections, farmer resources / teachers for ensuring proper care of the children. More than 1’500 kids from households, from coaching visits and training programs. which we source coffee, are now attending these facilities on a daily basis. In connection with equality between men and women for a deeper integration of the latter in the technical control of coffee production, post-harvest treatment and decision- making, this journey starts with the understanding of what activities are carried on by women and men to further adjust training materials and sessions. In the early 2010’s, ECOM partnered with the IFC in Indonesia and Vietnam to do this assessment This journey starts with the understanding of what activities are carried on by women and men to further adjust training materials and sessions. In the early 2010’s, ECOM partnered with the IFC in Indonesia and Vietnam to do this assessment. Click here to learn more. In a recent project - the Women Capacity Building (2018-2020) - our sustainability division in Vietnam received the support of the roaster Strauss to train and equip 300 women Robusta farmers from the K’Ho ethnic group in Lam Dong province. Intercropping with the planting of 9’000 fruit trees (avocado, durian) to provide additional on farm income streams ; 6 hulling & grading machines were handed over for the group leaders to offer an improved and cheaper service to their members as well as compost choppers to produce organic matter to feed their coffee & fruit trees. Click here to learn more. Market recognition of women’s involvement in coffee production can be a powerful tool to support these initiatives and we believe would benefit from the IWCA label (International Women Coffee Association) which chapter in Vietnam was established in 2020/21 with ECOM sponsorship. We develop market linkage for women farmers living in Son La province among the Thai & H’mong communities hoping to sell their coffee with the IWCA mark through the women cooperative established by our supplier Detech. In partnership with CIRAD and a local research institute, women are trained as nursery skilled staff to propagate Arabica seedlings (F1 hybrids bred by ECOM-CIRAD) and are empowered to sell these eventually. Click here to learn more. Article By: Laurent Bossolasco
Laurent Bossolasco, Sustainability Manager for ECOM “The sustainability agenda is driven by how profitable A Better Future Asia, says this focus on Robusta has given Vietnam a ‘bitter’ reputation which might not hold up to it can be for farmers and how well it connects them to exporters.” scrutiny. An example he gives is the willingness of some Vietnam has built a reputation as the world’s largest robusta producer, and is now evolv- “When some people think of Vietnam, it’s as a farmers to invest in automated drip irrigation, which ing by embracing sustainable practices and profitability over productivity supplier of low-quality Robusta, or soluble and instant saves water by allowing it to drip slowly to the roots coffee. It’s not where people think of for third wave of plants, although an investment barrier makes this Arabica coffee, but there is an effort to change that unachievable for the majority of producers. Vo Thien Nghia’s family has been growing coffee in by promoting higher qualities, even if it’s on a smaller “We had farmers willing to contribute 50 per cent of the Central Highlands of Vietnam since 1986, planting scale,” Bossolasco says. the invest, with the other half subsidised, because the crop because it was a less risky choice than other What separates Vietnam from other coffee producing they could see that, over time, they could use the crops. However, with coffee prices remaining low for countries, according to Bossolasco, is not a focus on equipment and save on labour for irrigation and several years straight, Vo Thien has had to diversify Robusta coffee but how farmers have been able to application of fertilisers,” Bossolasco says. his farm. maximise their output. SUSTAINABLE FUTURE “The market price is a challenge. The price has not “A lot of countries need and have the possibility to Even with a small decline in 2020, Vietnam is still changed too much, but the labour costs are getting produce a little more coffee and income per hectare, firmly placed as the second largest coffee producing higher and higher. If the cost of production is high and and Vietnam is a good reference point,” he says. country in the world. Vietnamese Ministry of the market price is unchanging, we must spend less “But they shouldn’t necessarily adopt all of the Agriculture and Rural Development (MARD) statistics on our families, food, and everything else,” Vo Thien aspects of production in Vietnam because they come suggest the country has an 18.2 per cent share of the tells Global Coffee Report. with different downsides. There’s environmental global coffee market, less than half of Brazil’s 36.8 per “We have had to begin intercropping. We plant more pressure, for example, or creating situations where cent, but more than twice the third placed Colombia’s fruit trees, pepper, and other crops into the coffee Vo Thien Nghia is a coffee farmer in the Central farmers could be more profitable by being less 8.1 per cent. farm to earn more profit from these other trees. We Highlands of Vietnam. productive.” With Brazil and Vietnam together producing more don’t only plant coffee and now earn more from the With ECOM Agroindustrial Corp, Bossolasco’s focus than half of the world’s coffee, the two countries play other crops inside the coffee farm.” We have had to begin in Vietnam is helping coffee producers optimise their a crucial role in the global coffee market. Due to this, The Central Highlands is home to 94 per cent coffee production, rather than simply maximising the low commodity prices that coffee farmers have of Vietnam’s coffee production, according to intercropping. We plant it. This means less use of water, agrochemicals, dealt with over the last few years have sometimes government figures. more fruit trees, pepper, and and labour per each unit of coffee produced, also been attributed to overproduction form these two When the French introduced coffee to Vietnam in the 1850s, it was first grown in French-controlled coffee other crops into the coffee improving the sustainability of the coffee. countries. plantations and focused more on Arabica than the farm to earn more profit from “The end goal is for farmers to be more profitable However, Tran Cong Thang, Vice Chairman of the instead of just more productive,” Bossolasco says. Vietnam Coffee Coordination Board (VCCB), says this Robusta coffee Vietnam would become known for. these other trees. We don’t The Vietnam War would disrupt the nation’s coffee only plant coffee and now industry over a century later. North Vietnamese earn more from the other victory at the Fall of Saigon in 1975 saw, which then led to the collectivisation of the county’s agriculture, crops inside the coffee farm. limiting enterprise and lowering production levels. -Vo Thien Nghia It wasn’t until the Đổi mới economic reforms of 1986, allowing for the private ownership of small experienced lower rainfall and higher temperatures enterprises, that Vietnamese coffee production would than average in 2020. Vo Thien says his local rise to the levels it sees today. community lost roughly half of its crop last season to Coffee is second to rice in terms of value of poor weather. agricultural products exported from Vietnam, “We’ve seen the effects of climate change very clearly embracing the Robusta species due to the higher in recent years. The dry season is longer and when it yields of the cash crop. rains, it rains a lot. Normally, it only rains about 100 According to the International Coffee Organization, millilitres, now it’s 200 or 300, which causes erosion Vietnam produced 29 million 60-kilogram bags of and damage to the coffee tree,” Vo Thien says. green coffee in the coffee year 2020-2021, down 4.9 However, he is more positive for the next season. per cent from 30.5 million bags in 2019-2020. “Up until now, the weather has looked good, so we The United States Department of Agriculture (USDA) expect that the coffee will grow as good as normal.” Foreign Agricultural Service attributes several factors to a decline in production and exports. These include ROBUST PRODUCTION COVID-19 affecting global trade, Vietnam facing Over the last 30-plus years, Vietnam has grown to strong competition from Brazil and other Robusta become the world’s largest producer of Robusta producers, and adverse weather conditions. coffee, with the species making up about 94 per cent Many of Vietnam’s coffee growing regions of coffee from the country.
continued... perception does not necessarily line up with what is actually happening in Vietnam. Alliance is one way the VCCB intends to add value and reassurance to its coffee. Participation Of ECOM CIV In A Charitable “The booming of coffee in Vietnam occurred from beginning of 90s to the late 2000s. But in recent “We want to shape the coffee sector in Vietnam for a long future, so we’ve been applying sustainable Action For The Benefit Of The Children Of The AIFCI Social Center In Anoumabo. years, the coffee output and growing areas in Vietnam practices to overcome the language barriers we face have not really increased that much. It’s actually quite when dealing with importing countries,” Thang says. stable, around 600 to 670 thousand ha since 2010,” “We want to make sure the coffee we produce is Thang says. ‘clean’ so the consumer can trust the coffee.” A Smile for all! “Rather than increasing quantity or expanding He adds that the VCCB will continue to encourage production areas, the government of Vietnam has sustainable production and that the Board has set tried to focus more on growing quality, improving the Vietnam on a good direction for the future. Solidarity, mutual aid and generosity are integral part processing sector, and encouraging more sustainable “Farmers are also becoming more aware of their input of the spirit of ECOM CIV. Make yourself useful, make methods of production.” use. They are using things like fertiliser and pesticide a gesture towards the most fragile, give some of your With the sudden rise of Vietnam’s coffee industry with more respect of sustainability,” he says. time, energy or money, buy an extra gift or an object since the 1980s, a lack of structure or coordination “We will also look into ways – like farms codes – to that makes sense... it’s easy, and it can mean a lot! In presented issues ranging from social inequality to improve the traceability of coffee from Vietnam and 2021, more than ever, ECOM CIV wishes to place this environmental degradation. MARD formed the VCCB add more value to our coffee with more in-depth time of the year under the sign of commitment and in 2013 to bring together different stakeholders processing with more value added.” sharing both in our communities with our farmers but from the industry to advance sustainable, large- Even within the country, Thang predicts greater ties also with the charitable movements that work in favor scale agricultural productivity, quality, and between coffee producers and cafés popping up in of needy, orphaned or sick children in our country who need help and means to shine joy in the eyes of AIFCI in a few words competitiveness. cities around the country. Present in Côte d’Ivoire since 1965, the International “Before the establishment of the VCCB, the “Data we’ve collected from the main cities shows an these children and bring a little happiness to those who have been harmed by life. Women Association in Côte d’Ivoire (in french AIFCI) only industry association was VICOFA, which increase in domestic consumption, with more modern works with the poorest populations, particularly only represented exporters. The VCCB is a good coffee shops opening up,” he says. On June 16, 2021, the Crop Doctor subsidiary of ECOM CIV participated alongside the International women and children, in the fields of education and representative of all stakeholders in Vietnam,” Thang “I think domestic consumption has a lot of room to health. says. grow in the near future. More friendly coffee shops Women Association in Côte d’Ivoire (in french AIFCI), in a charitable action for the benefit of orphaned and AIFCI currently supports 9 centers for women and “An issue in Vietnam was that the voice of the will be open in Vietnam and it will attract more people children: schools, orphanages, clinics and social farmer was not strong. VCCB members include to drink coffee.” needy children of Anoumabo to whom an animation team and volunteers organize games and creative centres in the Abidjan region. representatives of farmers, cooperatives, and coffee Instant or soluble coffee production is another way Their mission: to work with the poorest populations, producing provincial governments so that their voices Vietnam has been able to add value to its coffee workshops followed by a snack. This activity could be held at the Majestic Cinema Hotel Ivoire where particularly women and children, in the fields will be heard.” domestically. Coffee giant Trung Nguyên has built of education and health (literacy and training, Once of the first initiatives of the VCCB, which has an export market of more than 60 countries for its the children watched.... And the activity ended with a snack to the delight of the children. An envelope as recreational activities for young orphans, assistance begun to bear fruit, was its support of replanting Vietnam produced and processed instant coffee. with an establishment for the severely disabled, coffee trees through the Coffee Sustainable Strategy Other enterprises involved in the Vietnamese coffee a contribution to the purchase of transport buses for the center, T-Shirts and CROP DOCTOR caps were reception and follow-up of young mothers and their and Coffee Rejuvenation Strategy. industry have also increased their investment in the babies, support for HIV carriers, etc.) In 2011, World Bank estimated that Vietnam’s coffee country, creating new ways to export coffee. Green distributed to about 55 children. production would fall by 30 to 40 per cent by the mid- coffee trader Tin Vo Thien Group is one such business, Article By: Marie Mongo 2020s without the large-scale replanting of coffee inaugurating an instant coffee production plant in trees. However, the long-term investment and short- December 2018. term reduction of income made it impossible for While the VCCB and large industry stakeholders work many smallholders. One of the ways VCCB made this to improve the future for coffee in Vietnam, in the more practical for coffee producers was to facilitate present, Vo Thien says smallholders need to brave access to finance until the new trees were able to current conditions, with hopes of better weather and flower. This project led to the rejuvenation of about prices on the horizon. 120,000 hectares worth of coffee farm. “The people and community here think that planting “The productivity and quality of our coffee trees were coffee and maintaining coffee production is very starting to fall. Thanks to this program, the farmer important for the future because, even though the could cut down the old trees and grows new ones, price is low, it provides a basic income for farmers,” Vo then try to follow sustainable standards with the new Thien says. crop,” Thang says. “We will continue farming coffee because there’s less The VCCB has also served as a meeting place for risk and it’s not as difficult to grow compared to other businesses and the government to discuss new crops. We can only hope that the coffee price will go policies and innovations to improve the coffee sector. up.” Greater use of standards and certifications like VGAP, 4C, Utz, Fair Trade, Organic, and Rainforest Excerpt from: GCR and ECOM Vietnam
EcomPrint Project Progress Connecting with P2P As of now, we have concluded our ECOM Cross-Commodity+Manufacturing and Enabling Functions Capa- In June, P2P launched its official website! Its current events, or certain books that relate to bility Maps, and have started the process of creating a detailed flowchart of each individual process (visual purpose is to serve as a communication hub that the project, as well as sending in suggestions or reference). We take this opportunity to thank the different teams involved in this process. can be accessed across the world, a center of comments through our suggestion box. Lastly, the information for P2P participants, and a way to Blog is where all of our communication materials connect all Ecom employees to the P2P division. are located, with the hopes to inform employees Our intranet has diverse components such as on what is happening with P2P. Bulletins will be videos, PowerPoints, infographics, and a two-way sent out every few months to get a broad idea communication channel throughout its four main of statuses. Articles bring in outside resources tabs: Homepage, Projects, Collaboration, and Blog. that relate and give more perspective to our P2P The homepage aims to provide a simple overview projects, and the book trailers provide highlights of what P2P is, its purpose, and related events, into book recommendations from our leaders in along with links to the main highlights. “Projects” the division. In the future, we hope to get more covers our EcomPrint. In this section, you can perspectives from the employees as the project expect to find the goal of the project, its progress so progresses in interview formats. far, training sessions that have occurred, material If you have not had the opportunity to see our site, like the cross-commodity capability map, and a please see the link below. Click, explore, leave any glossary to expand on IT and PMO terms. Next, we suggestions or start up a discussion! P2P app is also have the collaboration tab, which focuses on the now available, everything you see on the website people side of P2P. Meet most of the people in the but on a mobile-friendly platform. Check the P2P division: The Steering Committee members, website for more information. those who are part of the Center of Innovation P2P is excited about this new start and wants to and Excellence, Change Management, Contract thank everyone for all the hard work, interest, and Management, and IT Control teams. Here, we support we have received to continue our process have also opened up the opportunity for ECOM to progress! employees to start up conversations, openly discuss Article By: Justina Mengelle (CM) Timeline P2P Website: https://sites.google.com/ecomtrading.com/p2p-ecom/welcome-p2
Cacao Latitudes, New Specialty Cacao Maison Duplanteur Bean to Bar Company Chocolate & The World’s Best Restaurant Cacao Latitudes has been the emerging specialty cacao trading brand for ECOM since Since 2017, Dominique Flavio, owner of Maison 2017, and in June of this year the brand officially launched a Belgian company, ready to Duplanteur, has been a proud partner of Cacao grow the European specialty and craft cacao markets. Latitudes. Together they have used their shared belief Justine Chesnoy, Europe Sales Manager for in the importance of ethical sourcing, traceability, and Latitudes, recently traveled to the Dominican flavor to create incredible chocolate. Republic with TF1, a French television channel, to Both Dominique and Cacao Latitudes were proud to highlight the work of specialty cacao sorcerer. As discover that their commitment to excellence has led a leading voice in craft cacao for French Chocolate to high praise and success for a mutual partner and makers, Justine was interviewed by Marcelle customer. magazine. When asked, “How do you concretely Each year, The World’s 50 Best Restaurants releases a help small producers?” Justine responded with warm list of the best restaurants in the world, highlighting candor, “By buying their production at the right the latest in innovative and delicious cuisine from price. But also, for those who are just starting out, across the globe. The current #1 restaurant in the by finding them business opportunities.” Justine and Chuck Zorzal world is Mirazur. Located along the famous Cote d’ Read the full article from Marcell Media Here Azure in Menton, which borders France and Italy, Mirazur is home to the singularly talented chef, Cacao Latitudes is focused on bringing exceptional Mauro Colagreco, who has enjoyed a long and fruitful flavors and exceptional farmers to the craft partnership with Maison Duplanteur. chocolate makers of Europe and the US. Kate “Mauro Colagreco’s unique cuisine is inspired by the sea, the mountains and the restaurant’s own gardens, https://www.theworlds50best.com/ Cavallin, General Manager of Latitudes, spearheaded the creation of a cacao flavor lab at Mercanta this including Menton’s emblematic citrus fruits,” extols year; following the coffee leader’s example by The World’s 50 Best in their review of Mirazur. www.cacaolatitudes.com focusing on flavor, traceability, and fair pricing However, Colagreco also depends on local suppliers, for farmers. “With our new company in place, like Maison Duplanteur, to provide top quality we can move forward with the certifications and ingredients to create his incredible cuisine. internal processes that will ensure leadership in the A commitment to understanding supply chain, specialty cacao space,” said Cavallin on future plans. Patricio and Kate Cacao Latitudes traceability and rigorous quality management may not be the sexiest topics to consider, but people like Article By: Kate Cavallin those at Cacao Latitudes, Maison Duplanteur, and @cacaolatitudes Mirazur know that careful consideration of these @chocolatmaisonduplanteur breeds success. As they say, the results speak for @restaurantmirazur themselves. Article By: Kate Cavallin
In this regard, Lic. Faus Sotelo, commented: “It is of utmost importance to create sources of knowledge that AMSA Inaugurates The Generating seek the common good of the producers as the basis of the chain, providing the field with skills that serve Center Of Leaders In Café De México to create sustainable coffee growing and attract farmers, young people to work in agriculture” and added that they will continue to support The space located in Zacapoaxtla, Puebla, will train Productores de Café del Totonacapan. initiatives that support Mexican coffee growers. the new technical coffee growers specialists, with After the inaugural ribbon cutting, a training course For his part, Lic. René Ávila Nieto, in charge the aim of achieving sustainable development in all for internal inspectors of sustainable practices of SMS México, asserted that producers who producing entities. began, with technicians from Chiapas, Veracruz, already collaborate in any of the supply chains ZACAPOAXTLA, PUE.- Agroindustrias Unidas Oaxaca and Puebla; During the opening tour, model managed by AMSA and who have model plots, de México (AMSA), through its Sustainable farms and organized producers that participate have the opportunity to participate for free in the Management Services (SMS) area, opened its in sustainable supply chains and whose practice activities of the CGL Café, as well as nominating first Generator Center for Leaders in Coffee (CGL has won them long-term sales contracts and fixed young producers to start training processes in it and Café), with the aim of developing new leaders prices for part of their production were visited. explained the multiple ways in which clients, private coffee technicians among the new generations of The center will offer face-to-face teaching companies and civil society can join this effort. technicians, producers and children of producers, techniques, distance training, multimedia materials “Through Intervention Plans based on the crop cycle and in order, on the one hand, to reduce the problem and mainly practices in model plots, to develop the with a sustainable vision, SMS serves thousands of producers of lag in the generational change of workers in the knowledge and skills of the students, in order to in Mexico with training, advisory, technical assistance and sustainable plots and, on the other, to introduce sustainable manage the coffee plantation with a sustainable supplies, among other services. The substantive mission is to contribute to improving the economic, coffee cultivation practices in all entities aromatic approach and manage the units of family social, environmental and health conditions of coffee growers and their families, ”added Ávila Nieto. producers in our country. production, in order to obtain better yields. Finally, the act was used to formalize a Memorandum of Understanding between AMSA and CIESTAAM of The opening of the first CGL Café was led by The CGL Café is available to all those involved in the the Autonomous University of Chapingo, from which it seeks to adopt convergent agendas and facilitate Lic. Francisco J. Faus Sotelo, Director of Coffee chain of and is supported by the Customer Service processes that allow producers to make knowledge, methodological tools, available to producers. Inputs Operations at AMSA, who was accompanied at and Monitoring Center (CASC), the SMS University and technological solutions guaranteeing the care of the environment, with emphasis on the sustainable the formal ceremony by various guests such as learning system, AMSA branches, and the network management of the soil and water resources and also, the need to support the development of capacities Dr. Vinicio Horacio Santoyo Cortés, CIESTAAM of SMS specialist technicians. which together with and transmission of knowledge among young people in the rural sector is recognized, with a view to Graduate Coordinator ; Ing. Eleazar Olivas Holguín, model producers and demonstration plots, result fostering a adequate generational change in Mexican coffee growing and to establish an applied research director of Starbucks Office of Producer Support in the broadest coffee knowledge management agenda, aimed at solving the main problems of the production units. in Mexico; Eng. Fabiola Santiago Guerra from the platform in Mexico. In addition, there will also be FIRA Teziutlán Agency; Ing. Luis Escobedo Cantú participation and support from various leading from Greencorp Biorganiks de México; MC Cesar companies in sustainable technological solutions Gonzales Monterrubio, from Biofabrica Siglo XXI, as for coffee growing, together with clients, roasters Excerpt from: elmundodelcafe well as the Ings. Uziel Jiménez and Eduardo García, and educational and research centers specialized in from Agribest Technologies, and Don. Máximo the aromatic. Ponce García, representative of the SPR of RL “Through Intervention Plans based on the crop cycle and with a sustainable vision, SMS serves thousands of producers in Mexico with training, advisory, technical assistance and sustainable supplies, among other services. The substantive mission is to contribute to improving the economic, social, environmental and health conditions of coffee growers and their families, ” -Ávila Nieto.
Analysis: A New Vision for Restoring Warbler do business; in Colombia, 95% of coffee is produced by smallholder farms. Wintering Habitat As an alternative model, pilot regenerative agriculture projects have been launched to build on the success of past efforts. These projects create a framework for Article By: Eric Ponçon and Juan-Diego Román Excerpt from: allaboutbirds.org transitioning farms in deforested areas toward restoring the functional components of their ecosystems, with the Recently the United Nations released a progress report on the goals set by almost 200 countries in the Con- costs covered by investors instead of farmers. vention on Biological Diversity—and the news was not good. In a nutshell, global biodiversity loss is a continu- ing catastrophe, and deforestation for agriculture is one of the biggest culprits. The La Cumplida coffee farm in Nicaragua is the site of a pilot project that shows this regenerative agriculture We write this essay as two executives for multinational as well. In our business, coffee production must be model in action—a blueprint for blended conservation- corporations in the agricultural commodities sector. You transformed into a biodiversity-plus commodity finance investment that can scale up regenerative might think we’re part of the problem. But we have a that creates prosperity for local farmers and rural agriculture. As with much of Central America’s different vision for agriculture, which sees farming as communities. highlands, the Matagalpa region of northern Nicaragua Yellow Warbler in Costa Rica. Photo by part of a cure, instead of a cause, for biodiversity loss. was deforested in the late 19th century for coffee and Fernando Burgalin Sequeria/Macaulay Our regenerative agriculture projects on coffee farms in The ideas we write about are not new. Ten years ago, cattle farming. Then American companies moved in Library. some of the world’s most biodiverse areas are providing an article in the journal Proceedings of the National to develop gold mines. But the La Cumplida coffee lowering the costs of fertilizer and pesticide inputs, proof that farming can restore biodiversity. And some of Academy of Sciences by University of Michigan farm went a different way in the late 1990s when it broadening the bottom line to include social impacts the most compelling early results are coming in the form biologists Ivette Perfecto and John Vandermeer was acquired by the late Clément Ponçon, a pioneering and environmental footprint, and compensating for of warblers and parrots—birds returning to reforested challenged the “assumption that agriculture is the French agronomist. Ponçon developed La Cumplida as lower yields (shade coffee produces 20% less than sun- coffee farms as symbols of an ecosystem that’s healthy enemy of conservation.” a model of agroforestry, that is, farming in a restored grown coffee) by delivering higher-quality coffee that for wildlife and people alike. “It is the kind of agriculture, not the simple fact of its forest setting. gets a higher market price. Our companies are motivated to act in this space, existence, that matters,” they wrote (emphasis added is In 2015, as the Paris Accord was being negotiated, the That last part is where the consumer comes in—the because the future of coffee is intertwined with healthy ours). Moringa Fund (a European private equity firm that coffee drinker who’s willing to pay a bit more for a cup of tropical ecosystems. Climate change could reduce the On the one hand, they described a model of industrial invests in sustainable agroforestry) saw an opportunity coffee. Why pay more? Maybe because the coffee tastes global area suitable for growing coffee by half by the agriculture that relies on low-cost labor to produce to contribute to the global agreement’s goals for better, or because they feel good about drinking coffee year 2050. In response, many coffee farms are predicted mass food quantities at a high profit for the parent conserving forests as reservoirs for greenhouse gases. that supports reforestation instead of deforestation. to move upslope into newly suitable microclimates company. There is collateral damage in this model, Moringa scaled up La Cumplida by investing about Regardless, the consumer needs to know why this coffee higher up in mountain tropical forests, which are also negative externalities in business-speak—costs to $4,000 per hectare to restore shade-grown coffee on is a better choice. That’s a common theme throughout some of the world’s last strongholds for intact tropical local environments and communities caused by the nearly 2,500 hectares of neighboring coffee farms the regenerative agriculture model: From investors forests and biodiversity. Another forecast predicts coffee producer, but not compensated for. Deforestation—and that had been devastated by drought and coffee-rust who bankroll a farm’s transition costs to the farmers as an agricultural product could be extinct in Nicaragua the resulting flooding, mud slides, and pollution—are disease. The program introduced new shade-coffee who take a risk by adopting a new model for growing by 2050, which would be devastating in a country where negative externalities. So are the climate impacts of varieties that can thrive in a 21st-century climate and coffee, to the wholesale purchasers, retailers, and coffee is the most important export crop. removing forests as carbon sinks. trained farm workers in methods that reduce the use of end-consumers—everybody in the supply chain needs Nicaragua presents the even steeper challenges that Over the past 20 years, there has been a lot of synthetic fertilizers and pesticides to shrink the farm’s transparency about why this is a better way to produce lie within the details of stopping biodiversity loss in good work to mitigate these farming externalities. environmental footprint. Moringa also developed a coffee. the tropics—namely, that the places with the biggest Certifications (such as the Rainforest Alliance’s tree complementary income stream for the coffee farms biodiversity conservation potential also happen to be frog sticker on bananas or coffee) raised the visibility from Rainforest Alliance–certified timber sales, as some Science is key to transparency in the regenerative rural farming areas where people are vulnerable to of sustainable food production for business and of the shade trees (such as mahogany and walnut) can agriculture projects we are rolling out at coffee farms in climate change disasters, political difficulties, social consumers. But the costs of planting shade-grown tree be sustainably harvested and marketed as FSC-certified Nicaragua, Costa Rica, and Colombia that are enrolled in unrest, and poverty. cover can make sustainability certification unattainable wood. Some of the timber was also used to build homes the Nespresso AAA Sustainable Quality program. That’s And so solutions that improve the prospects for for most small coffee farms. And small farms make up and schools in the community, thereby enhancing the why we’re partnering with academia, using science biodiversity must improve the prospects for people the bulk of coffee production in the countries where we socioeconomic security of the farm workers and their to provide transparency that shows our programs are families. making progress toward their goals. To tell the truth, With commercial support for purchasing the coffee as businessmen it’s intimidating to invite a bunch of from Ecom and several coffee companies (including PhDs onto these coffee farms to poke around and tell us Nespresso, Costa Coffee, Nordquist, and Peerless what we’re doing wrong. But to do it right, regenerative Coffee), the La Cumplida project has transformed this agriculture requires standardized, measurable metrics. region in the mountains of Matagalpa. As the investors, Because restoring coffee farms begins with addressing Moringa and its partners receive the rights to the the needs of the families living on those farms, we proceeds of the coffee crops for a period of five years— partnered with the Instituto Centroamericano de after that, participating farmers receive the full benefits Administracion de Empresas in Costa Rica (INCAE, of the restoration, with the farms’ best coffee-growing one of Latin America’s top business schools) to apply years ahead. the Social Progress Index. According to INCAE, it’s an The story of La Cumplida demonstrates a regenerative- index that measures “the capacity of a society to meet agriculture strategy that makes long-term investments, the basic human needs of its citizens … and create the balances trade-offs, and accounts for externalities— conditions for all individuals to reach their full potential.”
continued... Toucans. Because birds are a highly reliable indicator of environmental health, our bird counts provide a reliable tool for quantifying biodiversity. To put it simply, if the birds are doing well on our coffee farms, we know that populations of other animals are likely to be doing well, that the water is clean, and that the soil and forest are healthy. Whether it’s the higher scores for human wellness in our Social Progress Index, or the higher frequency of Baltimore Oriole sightings that inform our Biodiversity Progress Index, these hard data provide transparency and tell the entire supply chain that these farms are indeed supplying a better cup of coff ee—better for Two endangered Yellow-eared Parrots in Colombia. The people and better for the planet. And metrics are key to convincing big capital finance firms to invest in ECOM Ghana Goes Green With ‘Green Ghana cavity (reinforced against nest predators) is in a wax palm—a tree that provides critical nesting habitat for regenerative agriculture. these birds. Photo by Carl Giometti/Macaulay Library. Sustainable investment funding is a growth sector for capital allocation. According to a recent special issue of the journal Issues in Ecology dedicated to conservation Day’ Used to survey the people living on coffee farms and in the surrounding rural communities where finance, sustainable investing grew 33% from 2014 to 2016 to about $9 trillion of all professionally managed There is a popular saying that “When the last tree dies the last man dies.” Indeed many countries are our companies do business, the index measures assets. But it needs to grow more, because we’re in a considering the impact of Global warming on the environment and driving initiatives to reduce the existing barriers and guides our progress in improving race against climate change to save coffee as a crop and negative impact of emissions from deforestation and forest degradation. ‘Green Ghana Day’ was a livelihoods, which also benefits biodiversity—because when people feel safe and empowered to improve their a way of life for family farms in Latin America. government-led initiative to plant 5 million trees in Ghana, and was viewed as a unique opportunity to lives, they are far less likely to engage in activities that Along the way, we think regenerative agriculture can enhance the future for the next generations because trees are critical to humanity’s survival. degrade ecosystems. help stem the global loss of biodiversity, because of The main objective was to restore depleted forest cover ravaged by negative human activities such as Preliminary results on our Social Progress Index ratings stories like this: Last year at a coffee farm in our project illegal mining and lumbering. According to reports by the Forestry Commission of Ghana, the forest cover for families living on our supplier coffee farms in area in Colombia, a birder conducting a survey for the Biodiversity Progress Index heard a raucous flock of stands at 1.6 million hectares from 8.2 million hectares, witnessed in the 1900s. Thereby, highlighting the Colombia indicate that they have better nutrition and need to preserve the ecosystem and aid the fight against the effects of climate change. medical care, better access to education (with 100% parrots swooping overhead. The flock settling into the of family members completing primary and secondary trees in a patch of forest turned out to be 15 Yellow- As a leading agro-industrial company in Ghana, with a mantra of creating rural prosperity, we continue schooling), lower incidences of violence against eared Parrots, an endangered species found only in to support policies and programs that restore and conserve our forests, crops, water bodies and the total women, and better access to drinking water than Colombia. Our regenerative-agriculture plan for this livelihood of our last mile clients and stakeholders. other households in the region. There are areas where farm includes an aggressive tree-planting initiative for wax palms—which are critical nesting habitat for Yellow- In view of this, Ecom Ghana participated in the tree planting exercise on June 11, 2021 to plant 1000 improvement is needed, for sure, but by measuring eared Parrots. mahogany trees at Antoakrom, a suburb in the Ashanti Region of Ghana. these indices we can see precisely where and how our companies can best contribute to improving the lives of The birder who discovered the parrots on the coffee This exercise was fully participated by both our office and field based workers as they geared up ready to people in coffee-growing regions. farm, José Castaño, is a local biologist who has been make Ghana Green! To look at our impact on biodiversity, we are working studying the species and championing its conservation in Colombia for the past 20 years. Speaking at the event, Akwasi Adom Dankwa, Regional Manager and Chairman of the staff engagement with the Cornell Lab of Ornithology and scientists at committee, emphasized the need for all staff, groups or individuals to make a conscious effort to brighten the University of Antioquia (Colombia) and University “The parrot was here before the Spanish came,” says Castaño. “For me, this is the best program for [the the little corner where we find ourselves so that collectively, we all live a day brighter and greener than of Costa Rica to develop a Biodiversity Progress Index that measures our progress in restoring ecosystems. parrot’s] future. Nespresso has the tools and the impact the day before. Our regenerative agriculture projects have provided in international markets to promote conservation coffee incentives for coffee farms to retain their existing forests focused on the parrot. and plant new trees to restore canopy cover. Of course, “And the Yellow-eared Parrot is an umbrella species. If biodiversity is harder to survey than social progress, the parrot is safe, we know that many other species are since forests don’t respond to survey questions. But we safe as well.” found one very energetic survey subject—birds. Bird counts on our coffee farms in Costa Rica found 220 Eric Ponçon (Cornell Agricultural Economics and Finance ’96) species, and in Colombia found 210 species. Preliminary is the Central America regional director for the Coffee Division scientific research on these farms indicates that many of Ecom Agroindustrial Corporation. Mr. Ponçon is an Aspen of these bird species are responding to the availability Leadership Institute Fellow and recipient of the Sustainable of above-ground biomass (tree cover). Included in Standard Setter Award by the Rainforest Alliance. Juan Diego those counts are some amazing birds, from seasonal Román is an agronomist and green coffee project manager for migrants such as Yellow and Cerulean Warblers that Nespresso in Costa Rica. Mr. Román works with farmers and come here from Canada and the U.S.A. to tropical suppliers for Nespresso’s AAA Sustainable Quality Program species such as Long-tailed Manakins and Keel-billed throughout Central America.
ECOM Always In Advance Since its creation, in each commodity where the Ministry of Agriculture decided to evaluate our ECOM is an actor, our goal has always been to help engine in cocoa and rubber tree areas from May farmers to improve their way of life with a “win- 25th to 28th in Touih (South West of IVC) and Daloa win” partnership. (West of IVC). Trials have been done by farmers A good cooperation between the Cotton and the which discovered the engine for the 1st time and Cocoa Department at the service of farmers has results were really amazing on how farmers easily been in place in Ivory Coast for about 2 years. handled and liked the machine. Farmers were really The cotton department opened the doors of their happy to see this machine which can ease their job suppliers to Crop Doctor (a chemical products in the farms, especially women who commented company operating under the umbrella of the “We will not wait anymore for men to help us clean Friday 20th June, was another occasion to demonstrate how important this topic is during the Opening Cocoa department). our farms”. “Having this machine means no more of an agricultural school in Raviart (located in the center of IVC in Didievi) financed by E-U, African We moved forward with the project “MicroMec’’ weed killers on my farm....” The final report of bank of Development....with the President of the Senate, the Ministry of Agriculture, the Ministry of which means micro mechanization of small evaluation is not released yet but from the draft, we Budget, the Representant of European Union. ECOM CIV’ Country Manager (Julien Marboeuf) and farms. The idea comes from the remarks that less can say that using “sharp-sharp” is cheaper, better Cotton representative ECOM in CIV (Paul-Henri Ahoussou) have been there to continue discussion with developed countries from South-America like for the health of farmers and easier for their job authorities in order to promote this new way of life for farmers. We also offered one machine to this Brazil became developed countries thanks to the than machete. agricultural school because they will be our ambassador for this new challenge. Minds must be changed, mechanization of their agriculture. Crop doctor Mechanization at farms level is a good mean the students are key stakeholders in this process, and they are also the ones which work closely with introduced the idea in Ghana and succeeded a to fight against serious problems in agriculture farmers all around the country because this school is part of the network of state-owned agricultural good collaboration with Cocobod (Ghana govt for centuries in general and especially in cocoa, schools of the country. Our staff took the opportunity to train the students on how to use the machine and organization in charge of cocoa.) like child labor, women empowerment, usage of they were really happy to see theory turn into reality. The business decided to promote the idea to the chemical products, hardship of agricultural work Our business is closely linked to the wellbeing of farmers, without producers no more soft commodities Ministry of Agriculture in Ivory Coast with our and incentive for young to work in the farms and we expect that our voice will sound loudly for the sustainability of the future of our business. machine “sharp-Sharp’’ which can replace the instead of take a boat to Europe in the hope to have machete mainly used by our farmers. People from a better life. Article By: Paul Henri AHOUSSOU
ECOM West Africa Values Journey: The participation of a large number of staff is required to embed these values. But how can we promote and embed these values, as well as ensure lasting cultural change? How Widespread Employee Engagement According to a recent McKinsey publication (March 2021), 25% employee workforce engagement is the “tipping point” for meaningful and sustainable change. Capacity building for transformation must be Aims to Transform Culture While Building ongoing, scalable, and multifaceted. This is especially difficult in the ECOM West Africa context, where two-thirds of our direct staff are field-based and/or highly mobile, with intermittent internet access. So, Capacity for Change what are some of the strategies we’ve used to engage our diverse and dispersed staff base? 1. Strong leadership for change -The Ghana Steering Committee has taken the lead in this culture change programme. Muhammadu Muzzammil, Ghana’s Country Head, officially launched the campaign Why work on ECOM WAF’s culture? with a series of virtual town halls encompassing all business departments. Business heads have spear- ECOM West Africa is a rapidly transforming ECOM business. We are shifting with the times. We are headed the engagement of their staff in value discussions (some reflecting on so-called ‘Values Moments’) diversifying our business streams to meet the shrinking margins for cocoa in the region. We are developing and have been the first to take up digital learning activities. new products and services for our extensive consumer base of smallholder farmers and their communities. 2. Broad workforce engagement - According to the same McKinsey article, ‘even when propelled We diversified our business from predominantly the first mile to more and more of the last mile. Our by top-level buy-in, capability building still needs to be scaled well beyond a few rounds with a chosen mission is to create rural prosperity with profitable first and last mile business models. few because employees who aren’t included in a transformation feel disengaged, disconnected, and left Business transformation must be supported by steady people and cultural transformation. Our people behind. Anything less than broad engagement defeats the purpose.’ We have therefore engaged a team of must adapt to changing business requirements, which necessitates skill alignment and a shift in mindset. Values Champions representing all levels and business areas to input their ideas into the development of Not only do we need to make seismic transformations in terms of capability, but also in terms of culture. learning, communication and engagement activities, provide key user support for value training and act as Our values: the 7 Behaviours of Highly Valued People key influencers to spread the ECOM way. In order to foster this culture, the 7 Behaviours of Highly Valued People were launched in Ghana in March 3. Blended learning: Designing innovative learning that is a blend of synchronous and asynchronous, 2021. The 7 Behaviours encapsulate the positive, safe, and cohesive culture that ECOM strives for. These face-to-face and virtual, visual and audio-based, has been critical to meeting the demands of our diverse core values, when combined with a spirit of innovation, empowerment, and efficiency, will help to build learners and embedding the 7 behaviours. ECOM West Africa University, our learning and development the trust and co-ownership required in a rapidly changing work environment to achieve ambitious goals. hub, began by creating a snappy whiteboard video to introduce the campaign (https://youtu.be/ z5Qu61dUoc8) that was played across all communication platforms, including TV screens at key vantage points in our Accra and Kumasi offices. We have since launched the first module in our digital learning campaign, ‘Give Respect, Get Respect,’ a narrative-based e-learning in which learners follow fictional ECOM employees through a series of scenarios illustrating good and bad examples of respect. The next edition, an audio-based narrative on ‘Communicating Positively and Professionally,’ was released in the last week of June. Digital learning has also been supported by face-to-face business-level learning where departments come together to work through our values in an experiential way, using team-based examples.
continued... Crop Doctor Ghana: Getting All 4. Creative engagement activities: In addition to blended learning programmes, we have engaged Our Retailers On Board our staff with exciting, interactive activities such as competitions and ‘Rock your Values T-shirt Days’. Our first virtual inter-departmental debate on the Crop Doctor Ghana Limited (CDGL) is constantly Business Head for topic ‘Raising your voice gets the job done’ was exploring ways to strengthen its products and brand Crop Doctor, Sudhir attended by close to 100 employees and sparked a in the agricultural sector, in order to ensure that Kumar highlights that lot of discussion and reflection on our values, which all business initiatives resonate with the Ghanaian ‘‘Crop Doctor believes emphasize communication. consumer. We are dedicated to providing quality in getting closer to On May 21, World Day for Cultural Diversity for products at reasonable prices to Ghanaian farmers clients in order to Dialogue and Development, we at ECOM Ghana and working with over 50,000 farmers to conduct provide better service. saw it as an opportunity to capitalize on one of our research and develop agricultural innovations that will We have worked hard to educate our farmers about upcoming core values of ‘embracing diversity,’ which lead to rural prosperity in farming communities. Our our products and services, as well as best agricultural we hope to implement later this year. As part of the belief in making significant inroads into Ghana’s agro- practices, in order to boost farm production and engagement activities for the day, staff members wore different attires representing various nationalities input industry originates from our value proposition income, and bring prosperity to rural communities. and cultures. There was a display of different local and international cuisines to signify our diversity in of building strong relationships with major key Retailers, shop attendants, and agricultural extension nationality, experience, thoughts, and gender. Esi Enninful, HR Business Partner, stated at the event that stakeholders. officials are not only vital stakeholders in the value we work in a multinational environment with cross-cultural reporting and operational lines. As a result, we In the previous edition, we emphasized that our road chain, but also key influencers; therefore we must must respect one another’s opinions and appreciate the differences that make us unique. map for this year is to maintain the engagement actively engage them to raise product awareness. 5. Regular internal communication: Keeping momentum throughout the year, which led us to We have planned an intensive campaign during the the values’ conversation going has been aided by embark on a series of engagement and training quarter to reach out to and educate Retailers, store visual aids such as posters, weekly newsletters, and activities with our key stakeholders. This drive is attendants, and Agricultural extension officials about to ensure they are well informed of our product our products and services in order to increase product internal Field Diaries features on values stories and portfolio, upcoming initiatives, and opportunities patronage.’’ tips. Our HR Business Partners are collaborating with available to them to expand their business whilst We believe that retailers play a significant role in the their respective businesses to ensure that values maximizing profits. agrochemical supply chain since they serve as the conversations are included in regular team meetings This quarter, we are embarking on a nationwide link between input suppliers and end-users and have and communication. retailer engagement in which we are walking our a huge influence on farmers’ product choices. As a Conclusion: We develop our capacity for change. retailers and store attendants through our product result, Crop Doctor is committed to building a well- Whilst building a renewed culture, we will develop portfolio (chemicals, seeds, fertilizer, equipment, etc.) informed market niche for our products and serving our people’s capacity to change. Values discussions The goal is to increase product knowledge among our our market with a diverse product mix that matches and training will assist people in developing a key partners, who are at the forefront of agro-input end-user needs. working and team culture that they want to be a part sales, so that they can introduce these products to So far, 25 district-level farmer training and of. It will give them a safe space to get the best out our farmers and other end users as they interact with engagement initiatives have been effectively of themselves, whilst also improving their business. them more frequently. implemented. At the end of this exercise, Crop Doctor We believe in the Return On Investment (ROI) of our Values Journey! The map below depicts the routes/regions of all the is confident that once retailers and end-users are We continue to work on our Values Journey in Ghana and are ready for the next stops: our Ivory Coast and engagement sessions we have had so far. familiar with the products, it will lead to full utilization Nigeria businesses. As an ever-growing agro-business, we have extended and the best results obtained from Crop Doctor our product line to include vegetable seeds and products. fertilizers. Article By: Anna Y. A. Ademadjiku Article By: Lori Nirenstein
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