05 Sep 2018 — The volume of sustainable cocoa sourced by Cargill has doubled since the company first established its own licensed buying company (LBC) model with an estimated 13,000 cocoa farmers benefiting from the initiative. This is a 30 percent increase from the 10,000 farmers from last year and demonstrates how direct sourcing puts cocoa farmers at the heart of Cargill’s cocoa business.
The figure of 10,000 metric tons (MT) of certified cocoa has been purchased by Cargill for the 2017/2018 crop season and comes as Cargill makes its second sustainable premium payment of US$870,000 to farmers since establishing its own direct sourcing model in 2016 . These premium payments currently represent the highest payments paid per bag of certified cocoa in the industry for the 2017/2018 crop season in Ghana, according to Cargill. Pieter Reichert, Managing Director of Cargill’s cocoa and chocolate business in Ghana, with district Chief Farmer Joseph Ackaah and other farmers. Cargill sources and purchases cocoa directly from certified farmers, building stronger relationships both with them and their communities, under the LBC model.
Around half of the sustainable premium payments are used directly by the farmers to increase productivity with investment in a range of projects such as crop financing and protection, distribution of fertilizer and improving logistics and infrastructure.
The other 50 percent is used by the wider community to support education, healthcare and women empowerment initiatives, making a significant contribution to improving the livelihoods of cocoa farmers and their communities, complementing other community projects undertaken through the Cargill Cocoa Promise.
Cargill Cocoa has set a 2025 target for achieving zero incidents of child labor in its supply chain as part of the company’s Cocoa Promise. But to achieve this, it is crucial to understand and address the underlying causes of child labor, the company claims.
In July, during an interview with FoodIngredientsFirst , Taco Terheijden, Director of Cocoa Sustainability at Cargill Cocoa & Chocolate, reflected on efforts so far to tackle child labor in the cocoa sector.
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Direct sourcing
Pieter Reichert, Managing Director of Cargill’s cocoa and chocolate business in Ghana, says direct sourcing puts cocoa farmers at the heart of our business and means Cargill has become the partner of choice for cocoa farmers in Ghana.
“Farmers recognize that, as well as a higher income, our approach offers them a wide range of support services to help them improve […]