Dive Brief:
- Hershey says the agreement is the latest in a series of investments the company has made to boost grower incomes, prioritize the well-being of children and protect the environment in cocoa growing regions.
- The Pennsylvania-based company said its “Cocoa For Good” program focuses on poverty, poor nutrition, at-risk youth and vulnerable ecosystems in West Africa’s Ivory Coast, the crop’s main growing region. Hershey said the initiative includes increasing family access to good nutrition, eliminating child labor, boosting household income and instituting a zero-deforestation policy.
- This partnership also intends to help restore a stable cocoa supply and higher yields, healthier and better-trained farmers, and a more sustainable environment.
Dive Insight:
In a June ESG report, Hershey said it had a goal of establishing full sourcing visibility for its cocoa volume in both the Ivory Coast and Ghana by 2025.
As of December 2023, the company had invested over half (51%) of its $500 million investment commitment in “Cocoa For Good,” and this week brought it to fruition.
The chocolate industry has been hampered by cocoa’s supply chain woes over the past year, and the side effects are being passed along to consumers.
In fact, cocoa prices have doubled since the start of 2024, and are projected to remain high through at least September 2025, according to a Wells Fargo report. As a result, producers like Hershey and Mars have raised prices on their sweets.
Hershey said its partnerships with the cocoa-producing cooperatives is a “ a memorandum of understanding,” that mainly looks to improve farmers livelihoods.
The announcement also coincided with the annual National Cocoa and Chocolate Days held in Abidjan, Côte d’Ivoire.
“Improving farmer incomes requires a holistic approach and collaboration across public and private sectors,” said Tricia Brannigan, vice president and chief procurement officer at Hershey.