Introduction to the film Nothing like chocolate 13052014

Introduction: Nothing like chocolate!

Pre-film introduction and discussion, Heerenstraattheater, Wageningen, The

Netherlands www.chocoladeboot.nl

13 May 2014

Dr. Verina Ingram

LEI, Wageningen UR

Cocoa theobroma

Greek “food of the gods” Mexican Aztec xocolātl “bitter water“

Cultivars

Criollo

Forastero

Trinitario

Tree bears fruit at 4-5 years old, average age 40 years, up to 100

Tropical needs shade, warm

climate abundant rainfall,

nutrient rich soil

30 pods

40 beans each

1 pod 500 beans

1 tree 600

flowers

1 kg chocolate

A tropical cash crop with colonial roots

Cacao cultivation spread across the hot, humid tropical belt reversing the slave triangle

What's in a bean?

Sources: Buitrago-Lopez et al 2011, Mursu et al. 2004, Steinberg et al. 2003, Wollgast & Anklam 2000, Crozier et al. 2011

Theobromine, caffeine

< 1 % Vitamins A, B1, B2, B3, C, E , pantothenic acid

< 1-4 % Alkaloids Mild stimulant, arousal

Craving

Impacts cholesterol, improve cardiovascular health,

inflammation reduction, neuropsychological & cognitive functioning

cerebral blood flow

Pleasure, craving

Suggested health impacts

From bean to bar...

Where is cocoa produced?

Exporters (Top 10) Importers (Top 10) Cote d’Ivoire United States

Ghana Netherlands Indonesia Germany

Nigeria France Cameroon Malaysia Ecuador United Kingdom

Togo Belgium/Luxembourg Papua New Guinea Russian Federation Dominican Republic Spain

Guinea Canada

Sources: UCTAD & ICCO, World Cocoa Foundation

Where is cocoa traded? Source: ICCO, The Guardian

Who eats the most chocolate?

Source ICCO 2012

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Supply chain

Social challenges 90% produced by 3 million small holder farmers

Approx. 14 million employed

Farmers high poverty levels

Fair prices & incomes

Position of women and workers

Ensuring basic rights re child and forced labour

Worker health and safety on farm

Human toxicity of crop protection products

Risk management and diversification

Source: TSC 2013, Cocoa Barometer 2012

Environmental challenges

Sourcing from ecologically sensitive regions

On-farm use of chemicals for crop protection

(pesticides) and inorganic fertilizer use

Depletion soil fertility and quality on farm

Biodiversity loss (full sun farms & deforestation)

Maintaining genetic diversity and resilience

farming systems and ecosystems

Pollution water sources

Packaging waste

Energy use and emissions during transport and

grinding, roasting and processing

Economic challenges Insufficient supply to meet growing global demand + declining yields

Control of and losses to pests & diseases

Volatile prices

Efficient models to delivering services and products to farmers

Impact climate change

Farmer access to markets and adding value

Governance and traceability in the chain

Cocoa prices

“Cocoa prices are too low bearing in mind how much demand

there is for it”

Edward George, Ecobank Commodities, January 28 2014

Solutions.....

Abidjan Declaration November 2012, World Cocoa Conference Cote d’Ivoire

Goal : move the entire sector to a path of sustainable development that will

benefit all stakeholders along the cocoa value chain

1) Strategic management

• Coordinate initiatives and participate in voluntary consensual processes

• National Cocoa Development Plans based on Public-Private-Partnership Models (PPP)

• Improve living standards and working conditions - especially women and children and ILO standards

2) Sustainable production

• Attract younger generations

• Better planting material and inputs, innovative technology, integrated pest management

• Aid farmer’s groups to offer training in “Good Agricultural Practices”

• Support Affordable and accessible credit services

• Manage soil fertility, preserve biodiversity and existing ecosystems

3) Chain sustainability

• Enhance traceability

• Reduce harmful impacts on the environment

• Training and access to market and consumer safety information

• Increase income by value-addition at origin

4) Sustainable consumption

• Respond to expectations and concerns of consumers

• Promote consumption in traditional/mature markets and origin/producer countries

Harkin-Engel Protocol (Labor agreement)

September 19, 2001

• Framework for growing and processing of cocoa beans and their

derivative products to comply with the International Labour

Organization Convention 182 on the elimination of the worst

forms of child labour.

• Signed by industry groups: the World Cocoa Foundation and the

Chocolate Manufacturers Association (now the Chocolate

Council of the National Confectioners Association), Guittard,

Mars, World’s Finest Chocolate, Archer Daniels Midland

Company, Nestlé US, Blommer Chocolate, Hershey Food

Corporation and Barry Callebaut, governments in West Africa,

NGOs, farmers groups and experts

Progress? Dark side of Chocolate film, Bitter Harvest report,

Payson Centre Tulane University, Fair Labour Association

The Ministry of Agriculture, Nature and Food Quality signed a letter of intent with 30 supermarkets, industry associations, companies, government agencies, NGO’s and certification agencies in the cocoa sector.

They committed to;

Produce 100% of ‘Chocolade letters’ in the Dutch market from 100% guaranteed sustainable cocoa by 2012

50% of all cocoa beans used in cocoa products in the Dutch market sourced from guaranteed sustainable cocoa by 2015

80% of all cocoa beans used in cocoa products in the Dutch market sourced from guaranteed sustainable cocoa by 2020

100% consumption in the Netherlands sourced from guaranteed sustainable cocoa by 2025

Results out June 2014!!

March 2010 Letter of Intent: Sustainable cocoa consumed in the Netherlands

Guaranteed certified cocoa:

What does it mean ?

In 2012 approx. 1143 k tons cocoa = 7% certified globally

- up from 2% in 2009 – however a supply deficit with synergies to upscale and to increase efficiencies in demand

*no other such systems were found or used to provide data yet

Sources: Cocoa Barometer 2011, 2012, IFC

Visible, measurable, third party schemes, independent auditing and monitoring of cocoa in the chain from producer to retailer with a traceable system.

2012

405 Kt

534 Kt

165 Kt

? Kt 37 Kt ? Kt

1,143 Kt and other comparable systems*

• From 2008 to 2015 Sustainable Trade Action Plan partners investing 40 million € (cocoa) on enhancing sustainability of commodity chains: certification main tool

• Dutch government & partners investing 40 million € (cocoa) from 2008 to 2015 on enhancing sustainability of commodity chains: certification major vehicle to achieve this.

• Recent studies highlight need for evidence on impact of sustainability initiatives – especially PPP and certification.

• Multi-stakeholder international public + private + research + CSO partnerships emerging

What's needed?

oUp-scaling positive initiatives

oMaintaining the sustainability /certification buzz

oDemonstrating to consumers initiatives having effect

oContinued education and training farmers & workers e.g. GAP

o Improved and accessible cultivars

o Increase productivity

oAccess to inputs and credit

oAlternative energy sources

oContinued promotion of biodiversity (cultivar, farm and landscape

level)

oMore efficient use current land & avoid abandonment of farms

oPartnerships

oAlternatives and innovators high value and niche markets

Challenges

Demonstrating progress to environmental and social goals

Who pays?

Going beyond certification

Speed of progress....

Sharing pre-competitive information, complementarity – not duplication

Efficient use public funding

Convincing private sector about efficiency of data sharing to improve monitoring, evaluation and trade data