Nestlé's efforts to make cocoa traceable (19459000)
The implementation deadline is fast approaching, as sustainability is high on the agenda of policy makers. European Union Deforestation Regulation (EUDR)The holiday season is approaching. The chocolate industry needs to prepare.
Nestlé is a Swiss multinational company that has programs like Income accelerator in Ivory CoastThe aim is to increase the sustainability and transparency of its cocoa supply chain. What are the obstacles to full implementation of this policy? Can consumers be sure that the chocolate they consume is sustainable?
Nestlé cocoa is more sustainable.
Nestlé's Income Acceleration Program aims to improve the livelihoods of cocoa farmers and their families by increasing income. Nestlé cocoa and chocolate are becoming more sustainable.
Income Accelerator was launched on a pilot basis in 2020, followed by an official launch in 2022. Cash incentives are used to encourage cocoa farmers, who receive cash rewards, to adopt more productive farming practices such as pruning and participating in agroforestry. Additionally, the program encourages cocoa farmers to enroll their children in school and create alternative sources of income.
Each farmer will receive 100 euros per year for their participation in these four activities. Then an additional 100 EUR is awarded if they complete them all, bringing the total to 500 EUR. After two years, this amount drops to 250 euros.
Cocoa from the program can be traced back to its farm of origin. It is therefore more likely to comply with the EUDR.
Nestlé – What is it? How to guarantee the traceability of your cocoa beans?
The EUDR has a strong focus on traceability. For a product to be EUDR compliant, regulators must have confidence in its traceability. Trace itFrom the store to the source, in this case the cocoa farm.
Darell High is Nestlé's head of cocoa. We know the names of all the farmers participating in the accelerator. Our farms have been mapped. This means that someone is responsible. [for example] A lead farmer used a GPS device to walk around the outside of each field, mapping it so we could know exactly where the farm is. Traceability starts there.
The cocoa is sold to the buyer who pays the highest price. Agricultural cooperativeThe cooperative will then sell the item to you. [cocoa supplier] Cargill which will then transport the product to York.
It is essential. “We know the locations of the farms, the locations of the cocoa fields and can trace the cocoa back to its source. »
The mass balance is a comparison of the two. Identity preserved (IP_
You can get cocoa in different ways. Rainforest Alliance states that mass balance cocoa is Rainforest Alliance certified cocoa combined with non-certified cocoa during production. Rainforest Alliance labeled products cannot contain cocoa that is certified, but they will have been made with cocoa from the same source. Rainforest Alliance says all international sustainability programs use mass balance in some form, which is more cost-effective than separating certified and non-certified cocoa supply chains (Identity Preserved (IP) , in turn, ensures that the sustainable cocoa obtained is separated from non-certified cocoa throughout the supply chain. This means that consumers are able to trace the cocoa they consume back to the farm. Creating a separate supply chain requires significant investment.
The blend identity preserved is the same as mixed origins, except that only cocoa from the intellectual property will be used
According to Kerry Daroci of Rainforest Alliance, a non-profit organization. which certifies sustainable cocoa farming, Nestlé “achieves the highest levels of traceability”, with cocoa sourced from farmers participating in the Income Acceleration Program remaining segregated throughout the supply chain.
This level of traceability allows cocoa to be separated from agricultural groups throughout the supply chain, from the final KitKat.
The Rainforest Alliance traceability system tracks data throughout the supply chain. This provides more information about where cocoa is produced and under what conditions.
Nestlé is able to monitor and evaluate sustainability throughout the supply chain. Nestlé can then identify areas that could be improved or risks throughout the supply chain. It also shows a due diligence effort. This can help Nestlé comply with new and upcoming regulations, which are currently important to the industry. »
She suggested that such traceability builds consumer confidence. It is crucial because consumers want to know where their food comes from and whether it is produced sustainably.
The multinational predicts that in 2024, 45,000 tonnes of cocoa will come from the Income Acceleration Program alone, with farms participating in this program being fully traceable.
Life's income
A small percentage. of cocoa farmers earn enough to meet their needs, such as the income needed to lead a decent life
Nestlé's Darrell High says the size of your land is an important factor in determining whether you can earn enough to live on. of different sizes. The average size of a farm is around three and a half hectares. Some farms are only one hectare in size. You will find it difficult to make a living if you own a one-hectare farm with seven or eight members. your household. You can improve your life. “We can close the gap, but because of the size of the territory, it is very difficult to close it completely. »
Climatic conditions can also have a significant impact on cocoa yields. Climate change has a big influence on this. Heat, rain or its absence have a real impact on yields. When you look at cocoa-producing regions, it’s clear that yields have a direct impact on income,” Rainforest Alliance Daroci told FoodNavigator.
Nestlé Cocoa Plan launched in 2009, aimed at strengthening the sustainability of cocoa. The revenue accelerator was part of this plan. It aims to reach 100 % by 2025.
Nestlé, according to Cheryl Allen of Nestle UK and Ireland's Confectionery Sustainable, is committed to separating cocoa from the rest throughout supply chains and increasing this quantity each time. She said this was becoming increasingly important to ensure transparency for all stakeholders.
Is Nestlé cocoa EUDR compliant?
Daroci explained that cocoa with full traceability is EUDR compliant? is fully compliant with cocoa whose traceability goes back to its origin
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It is not necessary that “Mass Balance” cocoa does not meet EUDR requirements. Rainforest Alliance certified mass balance cocoa may still be able to meet EUDR standards as long as suppliers are able to trace the cocoa. This can be done separately, provided that suppliers are able to implement a sustainability system. “They import the product into Europe and they are the ones who have to present this information to the EU first. They also need to trace the entire supply chain. »
Nestlé High added that most imported cocoa is separated but is mixed in factories by suppliers to create a mass balance.
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