Cocoa has a wide variety of usage in the food industry. It is primarily used in cocoa powder, chocolate, bakery items, cocoa butter, cocoa liquor, and spices. North America and Europe are the biggest markets for cocoa products due to higher demand for confectionery purposes. The cocoa market is experiencing a steady growth with a CAGR of about 3%. Different stakeholders including farmers, primary buyers, traders, and end-consumers are involved in practices that can make the value chain of cocoa market sustainable. Also, since big corporations absorb a major chunk of profits in the cocoa market, members of the cocoa value chain have developed sustainability practices to empower cocoa farmers. Here are some of the best sustainability practices in the cocoa market:
Extensive cocoa farming can deplete the farming land of essential nutrient content and composition of organic matter over decades. As a result, local associations and NGOs are working to undertake soil mapping to understand the soil composition and increase productivity and yield. It also involves recommending the use of organic and inorganic fertilizers to apply good agricultural practices.
Community Development Programs
Suppliers in the cocoa market such as Cargill, Barry Callebaut, and Blommer Chocolate Company are planning to implement a series of community development programs to empower local communities producing cocoa. It includes the provision of safe drinking water, sanitation and hygiene, and health and nutrition. To empower the cocoa farmers, suppliers have also ensured the inclusion of women farmers to increase overall family income and improve school enrollment rates and attendance to reduce instances of child labor.
Farmer Support Programs
Suppliers in the cocoa market are considering launching financial schemes and crop protection programs to increase a farmer’s overall revenue. The program also ensures farmers get fair prices for their produce and extended credit facilities. Apart from this, they also get on-the-field training and access to high-quality farming equipment, fertilizers, and storage facilities.
Read more about the sustainability practices in the cocoa market along with supply market landscape, pricing, and procurement insights in SpendEdge’s upcoming procurement report on the cocoa market