Last but not least, several governmental initiatives have emerged over the past decade to request consumer countries to take greater responsibility over the sustainability of their cocoa supply chain and further more to support cooperative organizations (ICCO, 2012). Corresponding to a sustainable cocoa supply chain, amongst the actions of each governmental initiative are the following: • European Union is considering the largest cocoa consumer worldwide, therefore announced its concerns and called for its member states to increase their responsibility towards sustainable cocoa supply chain (European Parliament, 2012). • The Dutch government in cooperation with large private sector players, NGO’s and development organizations signed in 2010 a Letter of Intent. In that letter, it has been stated that by 2025, Netherlands will have a 100% guaranteed sustainable cocoa consumption. It must be mentioned that Netherland is responsible for 25% of all global cocoa processing (IDH, 2010). • The German government alongside with private sector, civil society and development cooperation has launched the Sustainable Cocoa Forum in June 2012, with the objective of increasing the amount of sustainable cocoa produced in countries like Ghana and Ivory Coast. In addition to that, livelihood of smallholder farmers will be improved. Germany scores a 12.4% of cocoa grown worldwide (FMA and FMD, 2012). Foremost, multi-stakeholders initiatives exist and are willing to promote sustainability in the cocoa supply chain. Usually, a variety of members from private sector, NGOs, governments, certification schemes and development agencies, form multi-stakeholders initiatives and are working together to change negative practices existing in cocoa sector (ICCO... ... middle of paper ... ...g is therefore important for increasing production and reducing pests and diseases. Consequently, pruning leads to reduced pests and diseases and therefore increased production. From the other side, very tall trees with a lot of branches are attractive for rats and squirrels. Black pod disease spreads quickly in the warm, humid atmosphere found in cocoa farms, which are not pruned. In addition, there are often more diseased and dead pods in farms with no pruning, where the disease can survive. Pruning reduces the number of unnecessary branches, and allows more light and wind to pass through the branches, which reduces pest, and disease levels. If pruning is not performed, the procedure of pods harvesting is becoming more difficult due to the high of the tree. Opposite, a cocoa farmer will gain much more profit from his farm if he harvests all pods on a regular basis
During Valentine’s week alone, millions of pounds of chocolate candies alone are sold (“Who consumes the most chocolate,” 2012, para 8). This naturally creates a demand for product, which in turns causes a need for ingredients. The main component in chocolate, of course, is cocoa. Since Côte d’Ivoire provides 40 percent of the world’s supply of this crucial ingredient (Losch, 2002, p. 206), it merits investigation i...
The first step in achieving food security is to maximise the use of food already being produced and to minimise its waste. The FAO (2013) estimates that 1.3 billion tonnes
Their strong balance sheet gives them a tough war chest and the ability to experiment in foreign markets. We recommend that Hormel continue investments in acquisitions that have sustainable product-life cycles and act as extensions of the integrated strategic position that Hormel has been pursuing up to this point. As an example, China is the global leading stakeholder in peanut production with over 37% of the world’s supply. This market in particular is extremely important in the context of Hormel’s recent acquisition of Skippy Peanut Butter. After meeting with Fred Halvin, Vice-President of Corporate Development, he shared how one strategic issue associated with growing internationally is the way certain products are perceived in different markets. In general, Asian countries prefer products made and sourced in the U.S. as opposed to China. This is because of actual and perceived differences in quality and production standards. Putting more efficient and modern technologies in the hands of farmers is just the first step in building an image of quality outside of the U.S. Further collaboration with organizations like the Rainforest Alliance will help Hormel set goals for quality standards, long-term revenue growth, and overall shared value creation so that Hormel can develop vertically integrated supply chains that provide long-term security for the acquisitions they make to extend their
Sustainability within Tim Hortons has remained a main focus with the organization. In 2005, Tim Hortons undertook a comprehensive analysis of mainstream coffee certification models. As a result of this study, the Tim Hortons Coffee Partnership was established. “The partnership was established to address sustainability issues we felt could work in conjunction with their important work” (timhortons.com). Tim Hortons Coffee Partnership focuses on a balanced approach, higher yields, improved quality and higher prices, technical assistance, organizational development, helping farmers make their own business decisions, social well-being for farmers and their communities, no certification fee to farmers, and third-party verifications. Currently, Tim Hortons Coffee Partnership has 3 active projects; the Trifino Region, the Colombia Project, and the Brazil. Tim Hortons Coffee Partnership also partners with The Hanns R. Neumann Stitung Foundation, The Tri-National Commission of the Trifinio Plan, and Control Union
At the end of 2014, 129 small farmers organizations in 20 countries held a certificate to produce and sell Fairtrade cocoa. Helping representing 179,800 small-scale farmers. Sales weight of Fairtrade cocoa grew to 70,600 tonnes in 2013-14, year-on-year increase by 17%. These sales include a Fairtrade Premium of $200 per tonne for farmers, this helps them to invest in their businesses or local community. In 2013-14, cocoa organizations received £8.4 million in Premiums. Which 37% was invested in various projects and programs to improve productivity and quality. The Premium is also invested in community programs such as schools (Côte D’Ivoire has only around a 50% literacy rate), medical centers and clean running water. Read more about the investments made by cocoa farmers with the Fairtrade Premium in this recount.” Farmers in the 85,000-strong Fairtrade certified Kuapa Kokoo cooperative in Ghana have spent their premium on building wells for drinking water, building public toilets, and a mobile clinic to visit member’s
Trends of moving toward supporting local food producers have increased over the years. People are looking for quality over quantity. “With the explosion of interest in local food, consumers now have more choices of products, labels, and ways to shop, so, many people are left wondering where to start” (Table, 2009). Buying locally supports sustainable food system, beyond just methods of food production and helps to increase food from farm to plate. Supporting locally drastically helps with the reduction of emissions and the negative effect that food traveling has on our environment.
Central Idea: Explain how cocoa beans are processed to produce the chocolate we all know and love
Sustainability of the supply chain has increasingly become a crucial aspect of corporate responsibility. Apart from being good for business, management of social, economic, and environmental effects of supply chain remains the right thing to do. Constantly changing markets have created complex landscapes that businesses must navigate to build sustainable supply chains. Sustainable supply chains aim at creating social, economic, and environmental value for all stakeholders throughout the supply chain. Building sustainable supply chains not only benefits the stakeholders but also aims at safeguarding business interests. Businesses can easily become sustainable by understanding who they are and working closely with people. Nestle is company that has been at the forefront in advocating for sustainable supply through the ‘creating shared value’ platform. The report makes recommendation on the role of supply chain management in attaining sustainability.
The company also tries to engage the stakeholder in the sustainable development through activities like, sustainable sourcing; packaging associations; workshops on sustainable supply; Sustainable Agriculture Guiding Principles and so on (Coca-Cola HBC Corporate Social Responsibility Report 2011).
In 2002 Nestle decided to develop a vertical supply chain as strategy for increasing brand names value and revenues with selected suppliers. The reason behind vertical integration was scarcity of natural resources. For example coffee suppliers and farmers’ activities decreased in the last ten years requiring Nestle actions for supporting farmers’ activities in a more efficient way creating value for both sides as win-win solution. As a result, vertical supply chain supported Nestle increase demand for new coffee products and selected farmers supports coffee beans production required for exclusive brands such as Nespresso (Nestle, 2012).
Cocoa production is predicted of getting shortage of supply in 2020 (Nelson, 2017). The famous chocolate drink that Malaysian drink daily, Milo contains cocoa. Other than Milo, Koko Krunch, Nestle Crunch Wafer, KitKat are also mainly made from cocoa. Nestle as a company which largely depends on cocoa bean for its products, will become one of the victim of this cocoa supply risk. The biggest cocoa producer in the world, Ivory Coast, is facing the problem of diseases infected in cocoa plant, frequent rain, and buyers forcing producers to sell cocoa at very low price (The Guardian, 2014). In Malaysia and Indonesia, cocoa plantations are threatened by a tiny moth named as cocoa pod borer which eat the seed (Nelson, 2017).. These pests has cost cocoa
Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013).
Thirty years later, organic farming was in high demand, but suffered developing pains. Although there was agreements being made, there was no regulations put forth towards organic farming. Fast forwarding to present time, many consumers are starting to purchase organic food products even making it a trend. Written in Inouye, Alena, and McCauley’s 2006 article “Organic Farming Should Be Pursued”, “organic farming is gaining in popularity due to Americans ' increasing concern about food safety and environmental protection.” This quote assumes the reasoning behind the sudden popularity in organic farming is society’s attraction towards the idea of a cleaner food industry and environment. The article also mentions, “As a result, sales of organic foods in the United States have increased by more than 20 percent every year since 1996, reaching $7.8 billion in 2000.”(Inouye, Alena, McCauley) The fact that popularity towards organic farming grows at a rate of 20 percent every single year further proves how its movement has such an impact towards the consumers of
They aim to do this by creating more jobs with efficient training and preserving the environment by using less water, land, energy and pesticides. By 2030, global agricultural production systems should shift from industrial to sustainable through replacing herbicides and pesticides with organic alternatives. Food should be sold locally before it is exported if the community is experiencing hunger or malnutrition. They aim to increase the food supply chain efficiency by 20% which will reduce food waste. Increase water efficiency used in agriculture by 20% which will provide more nutrition with less water. As well as using irrigation technology that only waters areas that need to be irrigated, which will preserve more water. In order to achieve the above points, there are strategies that can be implemented to ensure this goal is reached. More assistance is needed from more developed countries, focusing on agricultural methods. Increasing the funds that small farm holders receive which can help to implement more efficient farming practices and in turn, promote local production. Support sustainable agriculture through policies and government legislation (United Nations Conference on Sustainable Development ,
This means that each party can make choices. However in chocolate manufacturing one of the parties is often a large multi million dollar corporation and the other is a small farming company. Concern about the impact of this on small primary producers in developing countries lead to the Fairtrade agreement which Cadburys is a part of. By signing up to the Fairtrade agreement Cadburys agree to buy cocoa at a certain value. Last year Cadburys sold over 7 million chocolate products made with Fair Trade cocoa and this supported 65,000 jobs in