Sustainable sourcing

Delivering sustainable ingredients is not just a job for food technologists. Procurement specialists also have a role to play. Over the last decade, many ingredients firms have developed innovative sourcing strategies that are geared towards securing long-term supply of essential inputs, of high quality and at stable prices, via transparent supply chains.

Often this means 'vertical integration' or working directly with producers or cooperatives (sometimes in partnership with trusted local operators or non-governmental organisations), and ensuring producers are fairly paid. But beyond remuneration, they also help ensure producers have the technical expertise and/or equipment to maximise yields, while adhering to sustainable agricultural practices.

For many companies, sustainable sourcing comes with a side order of investment in the wider community, via initiatives to improve social wellbeing, health, education, or infrastructure. In helping ensure farmers' families and communities thrive, they reduce the likelihood of farmers ending their activity and seeking better conditions elsewhere.

Cocoa sustainability in practice

Oliver Nieburg is a market analyst at Lumina Intelligence and has nine years of experience covering the cocoa market as former editor of trade publication ConfectioneryNews.

Oliver Nieburg, Market Analyst, Lumina Intelligence

“Billions have been invested to stimulate sustainability in cocoa in the last 10 years. Alignment among companies and governments has improved, but there is little evidence of a strong contribution to the target indicators of the UN’s 2030 Sustainable Development Goals.”

“Farmer adoption rates for company initiatives are low and average yields per hectare have declined in the two main producing countries. Poverty, child labour, malnutrition and deforestation remain widespread. It comes as farmers feel locked out of decision-making.”

“A cocoa origin claim is a communication on a chocolate package or online product description indicating where the cocoa comes from. It can be a country claim (a single origin claim such as Ecuadorian cocoa), a province claim (e.g. Amazonas) or a farmer cooperative claim. Chocolate products with such claims attract stronger online consumer engagement, better reviews and star ratings than products using a conventional fair-trade claim. Origin claims also attract a higher retail price.”

“A cocoa origin claim can be a more neutral way to promote cocoa sustainability than a fair-trade claim that positions farmers as groups in need rather than equal business partners.”

“Chocolate brands can drive the premium-end of the ethical chocolate market with mission-led brands tied to a deprived cocoa province. Such brands should engage cocoa farmers to be part of decision-making process. Farmers could decide how premiums from higher retail prices are spent on local infrastructure. Imagine a chocolate origins line promoting Ashanti (a region in Ghana) where a portion of profits go to fund teacher housing, which has been identified by farmers as a pressing community need to attract quality teachers to the local area.”