The document discusses Mondelez International's Cocoa Life program, which aims to build a sustainable cocoa supply chain. It was launched in 2012 to improve the livelihoods of cocoa farmers and their communities. Cocoa Life focuses on empowering women, supporting education, promoting forest conservation, and making cocoa farming resilient and profitable. It works closely with farmers, suppliers, NGO partners, and governments to address issues like low yields, child labor, and climate change through training, seed and input distribution, and community development projects. Impact is measured through annual surveys and progress reported against global key performance indicators.

1. FOOD SUPPLY CHAIN MANAGEMENT
FT 516
BUILDING A SUSTAINABLE COCOA SUPPLY CHAIN
SUBMITTED BY:
KRATIKA SINGHAM
INT. FOOD TECHNOLOGY(B.TECH+M.TECH)

2. INTRODUCTION
“COCOA LIFE” is Mondelez International’s Global cocoa sustainability program was launched in 2012
HISTORY
The origin of cocoa life began in 2008, as the CADBURY COCOA PARTNERSHIP (CCP) in Ghana.
 Increasing women empowerment in cocoa farming
 Promoting profitable livelihoods
 Sustainable cocoa supply
 Mondelez International has made a long-term , high-level and public committment to the Cocoa Life program.
 In November 2012 they announced an investment of $400 million ($ USD) over 10 years into their cocoa supply
chain.

3. WHY COCOA LIFE PROGRAMME?
NEED
Poor livelihoods and low productivity of cocoa.
FACTORS RESPONSIBLE FOR LOW COCOA PRODUCTIVITY:
 Limited farmer capacity to adopt (GAPs)
 Poor capacity to manage the farm effectively ‘as a business’
 Inadequate supply of improved agricultural inputs
 Weak or non-existent farmer-based organizations
 Limited access to appropriate agricultural finance
 Ageing and weak cocoa farmer population
 Declining interest of youth in cocoa farming
 Poor access to social services and infrastructure
COMPLEX CHALLENGES
 Climate change(global warming)
 Gender inequality
 Poverty
 Child labour
 Deforestation

6. FOCUSSED AREAS:
 Turning cocoa into a “business of choice”
 Creating inclusive and empowered communities
 Educating on forest conservation and restoration
 Initiatives to support farmers in local communities
 To cultivate stronger, more resilient crops
 Emphasis to make sure women also benefit from these initiatives
 Reduce our carbon footprint by tackling deforestation
 Farming-techniques, trainings, education, literacy programs, business management & financial
literacy

7. VISION , PRINCIPLES AND FOCUS AREAS

8. PRINCIPLES OF COCOA LIFE PROGRAM
The program has three non-negotiable principles.
1. HOLISTIC FARMER CENTERED
The program responds to the needs of farmers and of their communities
2. PARTNERSHIP
The program is developed and delivered in partnership with other supply chain actors, National and local Government,
development NGOs and other relevant stakeholders.
3. ALIGNMENT TO MONDELEZ SOURCING
The program is implemented with farmers within the Mondelēz supply chain.

9. 5 KEY AREAS

10. COCOA LIFE ADVISORY COUNCIL
The Cocoa Life approach is overseen by the Cocoa Life Advisory Council
SECRETARY- The cocoa life Director
MEMBERS - Senior Business representatives, origin representatives and external advisors from international NGOs
with an interest in human rights, development or environmental issues.
ROLE - provide strategic guidance & meet external expectations and business needs.
THE COUNCIL IS RESPONSIBLE FOR:
 Providing input to Mondelez International’s vision and approach
 Encouraging innovation in cocoa origin and R&D strategies.
 Monitoring and evaluation of origin development programs
 Promoting alignment and sharing of learning
 Providing external perspectives in communication
 Advising to maintain integrity of program vision and implementation
 Facilitating engagement with government and civil society stakeholders

12. SUPPLY CHAIN ALIGNMENT
SHARE DEVELOPMENT OBJECTIVES WITH SUPPLIERS
SHARED GOALS INCLUDES:
 Working with farmers & cooperatives to increase farm yield and quality
 Building stronger and more professional cooperatives
 Improving community access to education and healthcare
SUPPLIER IDENTIFICATION, SELECTION AND ENGAGEMENT PRINCIPLES
six elements:-
1. Shared commitment
2. Partnership and inclusivity
3. Productivity
4. A holistic approach
5. Scaling up
6. A shared understanding of rural challenges

13. STAKEHOLDER GROUPS AND CORE STEPS IN SUPPLY CHAIN ALIGNMENT

14. DESIGN PRINCIPLES OF SUPPLY CHAIN ALIGNMENT
 Supplier has transparency to farm level of the volumes purchased from Cocoa Life communities.
 Transparency on volume of cocoa bean purchases between respective supplier and MDLZ,
 Provide financial traceability to farm level.
 Providing Mondelez with flexibility in sourcing to allow for volume fluctuations.
 Scale up the percent and volume of Mondelez International total cocoa bean / equivalent requirements being
sourced from Cocoa Life communities until 2022.
VALUE CHAIN

16. COCOA LIFE 10 GLOBAL KPI’S

17. IMPACT EVALUATION
IPSOS (Independent polling system of society) ,3rd largest market research company
 Measures progress by conducting farmer, farmer’s household and community studies comparing baseline conditions
to developments over at least three years with data collected, based on the program’s global Key Performance
Indicators (KPIs).
 Impact assessments - longitudinal panel study that is statistically representative of Cocoa Life participants.
 Panel study - Farmer Impact Study (FIS) and Community Impact Study (CIS)
In addition, IPSOS has provided Last Mile Verification (LMV) studies to validate reports of volumes of cocoa sold
from farmers to collectors, and premiums distributed to farmers with farmer reports.

18. FIS AND CIS EVALUATION TOOLS
THE FIS IS IMPLEMENTED WITH THE FOLLOWING EVALUATION TOOLS:
 Farmer Household Survey (FHS)
 Farmer Spouse Survey (FSS)
 Farm Observation Survey (FOS) following Cocoa Action farm observation protocol with a subsample of farmers
included in the FHS
 Qualitative in-depth interviews, focus groups, cognitive testing
THE CIS IS IMPLEMENTED WITH THE FOLLOWING EVALUATION TOOLS
 Village Leader Survey (VLS)
 Qualitative in-depth interviews, focus groups, cognitive testing and ethnography
with community members.

19. SUPPLY CHAIN VERIFICATION
FLOCERT is a socially-focused and leading Global certification body , auditing and certifying all
actors within Fairtrade supply chains.
Owned by Fairtrade International
 Verifies the flow of cocoa from Cocoa Life communities into our supply chain.
 verifies the benefits cocoa farmers receive, such as premium payments and clear trade terms.
 Verification drives learning and transparency, and ensures we are sourcing from the farming
communities we invest in.

20. COCOA LIFE JOURNEY

21. COCOA, CHOCOLATE INDUSTRY DONATES TO FIGHT COVID-19
 Global cocoa and chocolate companies - $835,000 (cocoa farmers and their families ) on May 4, 2020 supporting the
National emergency plans of governments in West Africa, Asia, and Latin America
 Financial support - Côte d’Ivoire and Ghana
 Health support - Brazil , Cameroon, Ecuador and Indonesia
DIRECTED TO:
International relief organizations operating with priorities set by the national governments, including CARE, International
Federation of Red Cross and Red Crescent Societies, and Lutheran World Relief.
CONTRIBUTERS:

22. COVID-19: HOW WE ARE PROTECTING THOSE AT THE HEART OF OUR
PROGRAM
THE 3-TIERED APPROACH TO TACKLE THIS CRISIS IN COCOA GROWING COUNTRIES:
 INDUSTRY LEVEL
 COORPORATE LEVEL
 COUNTRY LEVEL

23. BUILDING RESILIENCE THROUGH EDUCATION IN GHANA
Working with Child Rights International
 Involves educating community members on protecting themselves and their communities from the virus &
providing books for children to keep minds active
 Distributing Veronica buckets (innovative sanitation product)
 Soaps made by women’s groups that providing vital sanitation across districts also stitching together face masks
(to meet health standards) using Cocoa Life cloth. (creating an additional source of income)

24. KEEPING OUR COMMUNITIES INFORMED AND PROTECTED IN
CÔTE D’IVOIRE
 Working alongside NGO partners, CARE to provide communities with hygiene and protection kits, that align
with recommendations from the Ministry of Health to primary schools, health clinics and cooperative
headquarters (October 2020)
 Implementing awareness campaigns using posters and local radio spots.
(April 2020)
 latest health advices through community radios, visual posters, and interactive voice messages to community
members’ cellphones.

25. PARTNERING TO PROVIDE EDUCATION, SANITATION
AND FOOD IN INDONESIA
Working with Wahana Visi and Save the Children
 Distributing hygiene kits, hand washing stations, facemasks, food and other essential ingredients( sugar, rice
and vegetable oil)
 child-friendly and farmer-friendly online virus-related training materials, &“training of trainers” to raise
awareness
 Provide portable hand washing stations, hand soap and sanitizer , educational materials , Banners and
posters on the importance of hand washing.

26. WOMENS EMPOWERMENT AT THE CENTRE OF A SUSTAINABLE
FUTURE IN INDIA
 Mondelez added 5000 hectares of new cocoa cultivation area in the states- Maharashtra and Assam, an
emerging optimal regions for growing cocoa.
 Communication- radio channels and digital media to conduct virtual training seminars for farmers and
developmental activities such as community education and health.
 Supply: seedlings and technical guidance
Supports marginalized tribal communities by introducing cocoa cultivation and training
programs for women farmers.

27. COCOA LIVELIHOODS PROGRAM (CLP) : INITIATIVE
 The WCF Cocoa Livelihoods Program is working to increase farm level productivity of cocoa and
food crops of smallholder, cocoa-growing households in West and Central Africa
.
 The WCF Cocoa Livelihoods Program (CLP) increases farmer income and strengthens cocoa
communities through three main objectives:
1. Increased farm-level cocoa productivity to 1000 kg/ha;
2. Improved service delivery efficiency for long-term, farm-level cocoa productivity increase.
3. Improved farmer resiliency with a focus on food crop productivity.
 Involving collaborations between public and private actors, and adoption of best practices

28. OBJECTIVES
• To provide a ‘full-package’of services to farmers.
• Promote food crops & empower women.
EXPECTED RESULTS
• Continued improvement in farm productivity and management
• Increased food security through additional food crops
• Greater women’s involvement in decision-making & partners improve outreach activities

29. CFI - is a joint partnership of the governments of Côte d’Ivoire and Ghana and 35 cocoa and chocolate
companies.i,e. Cocoa and chocolate companies and governments collaborate within the framework of CFI with
other stakeholders such as NGOs, farmer organizations and civil society organizations.
RESULTS
 Côte d’Ivoire - adopted a national satellite system to monitor deforestation for CFI, and planted almost 10
million trees in 2020, aiming to extend forest cover to 20% of the country
 Ghana: Cocoa Forest REDD Program(GCFRP) restored about 226,000 hectares of forest area, or 870 football
fields per day in 2020 with cocoa landscape partnership (May,2021)
 Cocoa and chocolate companies have distributed 10.4 million forest trees since 2018 and reached 82% (Ghana)
and 74% (Côte d’Ivoire) traceability in direct sourcing in 2020and mapped about 605,000 cocoa farms in both
countries.
THE COCOA AND FOREST (CFI) : INITIATIVE

31. CLIMATE SMART COCOA (CSA) : PROGRAM
IMPACT : West Africa and Latin America
OBJECTIVES
• Map and model current and potential impacts of climate change.
• Develop strategies to stimulate private sector investment and engagement.
• Design and implement innovations adopted by private sector partners.
EXPECTED RESULTS
• Increased knowledge of climate change impacts
• Better analysis to invest and manage risk in a cocoa market
• Strategic alignment among private and public sector actors on climate-smart objectives.
• New services and tools to increase private sector engagement and CSA practices among farmers.
IMPLEMENTING PARTNERS
• Funders: USAID, WCF member companies
• Contributing Companies: Barry Callebaut; Cargill; Ecom; The Hershey Company; Lindt & Sprüngli; Mars,
Incorporated; Nestlé; Olam; Touton

32. CLIMATE SMART COCOA PRACTICES

33. AFRICAN COCOA INITIATIVE - II
The World Cocoa Foundation African Cocoa Initiative II program is a public-private partnership
 Provision of better planting materials
 Pesticides and fertilizers
 Credit to cocoa farmers.
OBJECTIVES
• Increase production and use of quality cocoa planting materials.
• Increase the provision of financial services in support of the cocoa value chain
• Include a strong focus on women and youth farmers
FOCUS COUNTRIES
 Cameroon
 Ghana
 Nigeria
 Cote d’Ivoire
PRIVATE SECTOR PARTNERS
Barry Callebaut, Blommer Chocolate, Cargill, Guittard Chocolate Company, The Hershey Company, Mars
Wrigley Corporation, Mondelēz International, Nestlé, Olam, TCHO, and Tree Global.

34. FAIR TRADE COCOA
THE STANDARD CRITERIA FOR FAIR TRADE COCOA
CERTIFICATION ARE:
Fair Trade standards assist farmers to organize as cooperatives and associations so they can earn fair prices for their
products.
 Regularly inspect cocoa producers to ensure that they meet child labor standards.
 Promote environmental sustainability in producing cocoa crops by prohibiting the use of dangerous agro-
chemicals and GMOs.
 The Fair Trade price guarantees that farmers are paid a sustainable price by allowing cocoa farmers to increase
product quality, build infrastructure, train workers, bring safe drinking water to their communities and
establish local health clinics and schools.

35. ECONOMIC IMPACT
“AN ADDITIONAL INCOME FOR FARMERS”
 In January 2011, Fairtrade International (FLO) created an International standard for the minimum price for fair
trade cocoa farmers which was increased from $1600 to $2000 per metric ton of cocoa. This gives farmers financial
stability and the ability to plan for future events. This consumption smoothing yields to a better quality of life .
 Increasing wages hence, younger generations are encouraged to stay and the industry can continue to produce.
 World Price of Cocoa in USD/kilogram from Feb 2013 to March 2020
Current cocoa prices = $ 2539.00/ton (May 2021)

36. COMMUNITY DEVELOPMENT
 Since 2012, $1.25 million has been paid by Fair Trade USA certified cocoa companies directly to fair trade cocoa
cooperatives for community development projects.
 Allows cocoa farming communities to attain programs that create better access to health care and education,
support women, and protect the environment.
 Fair Trade USA's cocoa cooperatives are largely in West Africa and Latin America.

37. INCREASING EQUALITY FOR WOMEN
Women constitute only 25% producing cacao in the Ivory coast hence, unable to get loans or a line of credit to
increase the quality of their crops and the productivity of their trees through investments in equipment.
 Fair Trade cocoa ensures that all are paid equally regardless of gender. This increases agricultural productivity
and product quality.
 Have greater marginal returns than men when given higher income hence, effect on improving the lives of
their children as well.

38. Ozone layer depletion
Water and soil contamination by pesticides
Atmospheric acidification
Abiotic depletion
ENVIRONMENTAL IMPACT
NEED : In Ghana, majority of cocoa production is not environmentally sustainable.

39.  Sustainable irrigation
 Crop rotation
 Reducing carbon emissions
 Improving biodiversity
 Prohibiting GMO crops
 Safe use of only legal pesticides
 Proper hazardous waste disposal.
Encourages environmental sustainability and transition to organic farming.
FAIR TRADE ENVIRONMENTAL STANDARDS
PRACTICES FOR COCOA PRODUCER INCLUDES

40. CHILD LABOR : THE DARK SIDE OF CHOCOLATE
 In 2009, there were over 109,000 children in the Ivory Coast engaged in child labor. UNICEF found that from
2012-2017 there was an average of 67% enrollment for male and 55% enrollment for females in primary school
 With Fair Trade practices in cocoa life ,child labor is prohibited and farmers are paid a fair wages
 Supplier will comply with the minimum employment age limit defined by National law or by International labour
organization (ILO) which is not less than 15 years for the employees.

41. GLOBAL PROGRESS 2020
Mondelez International’s chocolate sourced cocoa through Cocoa Life
 Farmers trained, coached or having a farm development plan on Good Agricultural Practices (GAP)
= 181,257
 Cocoa seedlings distributed = 18,129,650
 Cocoa-farming demonstration plots = 1,013
 Nurseries = 267
 Cocoa farmers reached = 188,043
 Communities = 2,169
 Youth trained on cocoa-related enterprises = 23,112
 Mondelēz International’s chocolate sourced cocoa through Cocoa Life = 68%

42. GOALS FOR 2022

43. FUTURE GOALS
Source cocoa for all of Mondelez International's chocolate brands from Cocoa Life
by 2025

44. THANK YOU