Twelve of the world's largest chocolate and cocoa companies including Cargill, ADM, Mars, Mondelez, Nestle sign joint agreement with Ghanian government to work toward making cocoa farming in country sustainable

Nevin Barich

ACCRA, Ghana , May 22, 2014 (press release) – Senior executives from 12 of the world's largest chocolate and cocoa companies are signing a joint agreement with the Government of Ghana as part of an unprecedented strategy to accelerate actions to make cocoa farming in the country sustainable. The plan, announced here today and known as CocoaAction, calls for building a rejuvenated and economically viable cocoa sector through increased cooperation between industry members and the Ghanaian government.

Emphasis will be placed on providing cocoa farmers with a combination of productivity enhancements and community development interventions. These efforts are expected to enable no fewer than 100,000 Ghanaian farmers to achieve 100% increase in productivity as well as improving the communities where they live by 2020. The strategy will be coordinated by the World Cocoa Foundation (WCF).

"This agreement represents one of the most significant steps the sector is taking to make cocoa sustainable," says Barry Parkin, WCF's newly-appointed chairman and chief sustainability officer at Mars, Incorporated. "This alignment of objectives, commitment of resources, and sharing of best practices is the type of transformative initiative that will really help farmers become more productive and secure the future of cocoa. While it represents a new way for the industry to work with origin countries, it also builds on the strong existing relationships with them. We are honored and proud to move these relationships to a significant next step."

CocoaAction was carefully and voluntarily developed by the companies in cooperation with the governments of Ghana and Côte d'Ivoire, the world's top cocoa-producing countries. The two countries provide about 55 percent of the world's current cocoa supply. CocoaAction will later be extended to other cocoa-producing countries and is already open to participation by others in the public and private sectors that support sustainability in the cocoa sector.

WCF President Bill Guyton says, "CocoaAction focuses on providing farmers with the necessary 'full package' of training and inputs needed to operate successful farms, while advancing the communities in which they live. It brings together the best elements of individual company programs, which can now be shared and scaled up."

The Ghana Cocoa Board Chief Executive, Dr. Stephen Kwabena Opuni says, "CocoaAction will complement the efforts of Ghana Cocoa Board towards its productivity and livelihood enhancement programs, which will improve the well-being of our cocoa farmers and secure a sustainable supply of cocoa."

Through CocoaAction, the companies will work closely with the Ghanaian government and other national institutions to provide improved planting materials, fertilizer and training to cocoa farmers, while promoting community development through education, child labor monitoring and remediation, and activities to enhance gender empowerment. A series of indicators, currently being developed by WCF, will accompany the strategy and will allow companies and governments to measure and manage CocoaAction progress.

Companies that have voluntarily committed to CocoaAction include ADM; Armajaro; Barry Callebaut; Blommer Chocolate Company; Cargill; Ecom; Ferrero; The Hershey Company; Mars, Incorporated; Mondelēz International; Nestlé; and Olam International Ltd.

A FAQ document about CocoaAction is available at www.worldcocoa.org.

About WCF

The World Cocoa Foundation (WCF) is an international membership foundation that promotes a sustainable cocoa economy by providing cocoa farmers with the tools they need to grow more and better cocoa, market it successfully and make greater profits. WCF's membership includes cocoa and chocolate manufacturers, processors, supply chain managers, and other companies worldwide, representing more than 80% of the global cocoa market. For more information, visit www.worldcocoa.org.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.