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cargill pays premium millions to cocoa farmers as sustainable sourcing grows
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new minimum price for fairtrade organic cocoa will offset volatility, claims flo
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a new minimum price for fairtrade organic cocoa, which comes into force early next year, will act as an income safety net for growers amid ongoing price volatility in the sector, according to the organization behind the standard. as of 1 january 2011, certified farmers are assured a minimum price of us$2300/metric tonne for their organic cocoa sold on fairtrade terms, or the market price if higher, said the fairtrade labelling organizations international (flo). and organic cocoa growers will earn an additional us$200 in fairtrade premium to invest in business and community projects for every metric tonne (mt) of cocoa they sell, up from us$150/mt, added the flo. “the fairtrade standards require that buyers pay cocoa farmers’ organizations at least the current market price. in the current cocoa market the market price is relatively high. but the minimum price will be very important in case the market price drops,” stressed the fairtrade advocates. with such a system in place, farmers are thus protected to earn at least a certain income off their cocoa crops, maintains the flo, adding that the fairtrade minimum price is higher for organic than non-organic cocoa to take into account higher production costs for organic production. in october, the flo announced that it was raising the minimum price for conventional fairtrade cocoa to us$2000/mt at fob level, also effective from the start of the new year. there are currently fairtrade cocoa producer organizations that are organic certified in the caribbean, central and south america including the dominican republic, belize, honduras, colombia, peru, ecuador and bolivia. and the flo told this publication that fairtrade has been an important tool for cocoa farmers in latin america to convert to organic production. “most cocoa producer organizations in latin america are now certified organic. they joined fairtrade first and worked on building their businesses and once they reached a certain level of organizational development then they converted to organic production. in this case, they used fairtrade premium funds to invest in the infrastructure and fees needed for organic certification.” there are also two fairtrade and organic certified cocoa organizations in the ivory coast but in their case, said the flo, they had organic certification first and then sought the fairtrade backing. products with double organic and fairtrade certification form a category that represents one of the fastest growing segments of the chocolate market worldwide, with over one third of fairtrade products sold today also organic certified. consumer demand for organic cocoa products is informed by increasing concern over the safety of the food supply along with other environmental issues, claims the international cocoa organisation (icco), which notes, however, that organic cocoa production constitutes less than 0.5 per cent of total production. according to euromonitor international, global organic chocolate sales were estimated to have increased in north america from a value of €26.6m in 2004 to €114m in 2009, and globally the market analysts note that in 2004 the market was worth €294m rising to €441 in 2009. mintel’s global new products database (gnpd) reveals that worldwide there were 475 new product launches of organic chocolate products last year. germany accounted for 107 of these, while the us had 74 and the uk 31 similar launches.
Source :foodanddrinkeurope.com
Date :
7
December
2010
Category :
food industries Economic
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leading cocoa processor archer daniels midland (adm) has announced it is kick-starting its ivory coast sustainable cocoa initiative – serap – in indonesia in a bid to boost cocoa quality from growers in that region. indonesia is the third largest cocoa growing nation in the world, with growers in sulawesi the target of the programme, said adm. a spokesperson for the cocoa processor told confectionerynews.
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archer daniels midland company (adm) is to source utz certified cocoa for the first time, after nigeria was granted sustainable recognition for its beans. nigerian cocoa farmers were awarded the country’s first utz cocoa certification following a partnership between ingredients giant adm and cocoa exporter saro agro-allied which aimed to develop sustainable farming practices in the country.
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another milestone has been achieved in the utz certified sustainable cocoa programme, with the first-ever shipment of cocoa beans from ghana that meets that standard’s economic, environmental and social criteria. leading industrial supplier barry callebaut said it has bought the majority of the shipment, saying it applauds “the dedicated efforts of the farmers affiliated with the cocoa abrabopa association (caa), the first cocoa producer group to become utz certified in ghana.
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the delivery of cargill’s first utz certified beans from vietnam marks an important milestone for the company in its bid to establish the region as a new origin country for cocoa, said the ingredients giant. the development, which saw the arrival of the beans to cargill ’s buying station in chau thanh ben tre province, demonstrates the company’s role in building a global sustainable supply chain, continued the company.
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cargill has resumed is cocoa and chocolate operations at its production facility in the ivory coast following the resolution of the recent political crisis in the west african cocoa powerhouse. since the eu lifted its restrictions on the ports and institutions, the main ports of abidjan and san pedro have begun operating again with exports of cocoa products and beans resuming. jos de loor, managing director of cargill cocoa & chocolate, said that cocoa bean purchases have already begun, whilst exports will commence in the next few days: “the situation is continuing to improve with visible and practical signs that the country is on the road to recovery following the months of instability and uncertainty.
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ngos and human rights groups have accused hershey of sourcing cocoa from african farms that use forced and child labour in wide-ranging criticism of the us chocolate giant\'s record on corporate and social responsibility. a report from global exchange, green america, the international labor rights forum (ilrf) and oasis usa said yesterday (13 september) that hershey had not ensured its cocoa supplies from west africa were not from areas \"tainted\" by labour rights abuses.
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cargill has announced a three-year us$5 million commitment to support sustainable cocoa in côte d’ivoire and ghana, including a partnership with care to sponsor a new program of activities to improve the livelihoods of cocoa farmers and their families in ghana and côte d’ivoire. cocoa is the largest industry and main export in the côte d’ivoire, with almost a quarter of its inhabitants somehow involved in the cocoa trade, and is inextricably linked to the country’s fragile political landscape.
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the partnership with care will improve access to education and basic services, promote better agricultural practices and help address the worst forms of child labor in cocoa growing communities. cargill\'s commitment also will expand its farmer field schools program. this program is currently training over 10,000 farmers and will expand to support tens of thousands of more farmers over the coming years.
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pod-to-pallet chocolate supplier barry callebaut has finally exited the consumer business as the belgium base sweets products buys its stollwerck division, in a deal announced today. the two companies did not disclose the financial details of the transaction, which is subject to assessment by european compeititon regulators. spokesperson for sweet products, jean-marie van logtestijn, told confectionerynews.
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