Silly me. I thought the world’s cocoa farmers, most of whom are poor, would surely benefit when global chocolate companies, including Hershey’s, Mars and Nestle, made major commitments to buy certified cocoa. Hershey’s and Mars pledged to certify 100 percent of their cocoa as sustainably produced by 2020, while Nestle has made a variety of commitments to certification.
It’s more complicated than that, as I should have known. It always is, isn’t it? I learned a little more about cocoa farmers and certification while reporting a story for Guardian Sustainable Business about Hershey’s.
The top of the story, unfortunately, was inadvertently mangled a bit in the editing process (it happens, but rarely) and so while you are free to read it as published in the Guardian, I’m going to post an earlier version here, and I’ll add a comment at the end. Here’s the story:
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Three years ago, following a campaign by activist groups, the Hershey Company announced that it would use 100% certified cocoa in its chocolate products by 2020. The activists, including the International Labor Rights Forum, Green America and Global Exchange, declared victory, albeit with reservations.
Since then, things have grown complicated. Hershey’s is making progress in its sustainable sourcing: the company says that, in 2014, 30% of its cocoa came from certified, sustainable sources. It expects to hit 50% in 2016, a full year ahead of schedule. “This has become a way of doing business in the future,” J.P. Bilbrey, Hershey’s chief executive, told Guardian Sustainable Business.
When Hershey’s made its commitment, some in the industry feared that there would not be enough certified cocoa to satisfy Hershey’s, Mars, Ferrero and other sustainability-minded companies. But, as Bilbrey says, “Capitalism is a wonderful thing. If you demand something, those that supply it to you will provide that particular product.”
What’s less clear is how much of a difference this sustainable sourcing is making in the lives of cocoa farmers. Hershey’s, which had revenues of $7.4bn last year, won’t say how much of its profits have trickled down to suppliers, nor will it say how much business it does with each of its three nonprofit certifiers – Fair Trade, Rainforest Alliance and UTZ Certified. However, the chocolate maker – as well as its certifiers and the activists who pushed it to source certified cocoa – all agree that certification alone isn’t enough to lift the incomes of cocoa farmers.
And that hits at the heart of long-term sustainability. If those incomes don’t rise, there’s a very real risk that the next generation of farmers will give up on the business. “Even with the highest premium paid (for certified cocoa), farmers are way deep in poverty,” says Judy Gearhart, executive director of the International Labor Rights Forum.
Han De Groot, executivee director of UTZ Certified, a nonprofit based in Amsterdam, agrees. After visiting certified cocoa farmers in Cote D’Ivoire, he wrote: “There is still too much poverty to have a decent and sustainable life.”
Hershey’s efforts go beyond certification [click to continue…]