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Diving overview:
- Hershey said the deal is the latest in a series of investments the company has made to increase 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, undernutrition, at-risk youth and vulnerable ecosystems in Ivory Coast, West Africa, the crop’s main growing region. Hershey said the plan includes improving families’ access to good nutrition, eliminating child labor, increasing household income and introducing a zero-deforestation policy.
- This partnership It also plans to help restore a stable cocoa supply, higher yields, healthier and better-trained farmers, and a more sustainable environment.
Dive Insights:
In its June ESG report, Hershey stated its goals are to: Build complete sourcing visibility for cocoa. Sales in Côte d’Ivoire and Ghana by 2025
As of December 2023, the company has invested more than half (51%) of its $500 million investment commitment in ‘Cocoa For Good’, which came to fruition this week.
chocolate industry Cocoa supply chains have been disrupted. We have experienced many difficulties over the past year, and the side effects are being passed on to consumers.
in fact, Cocoa prices have doubled since early 2024They are expected to remain high until at least September 2025, according to a Wells Fargo report. As a result, producers like Hershey and Mars have increased the prices of their snacks.
Hirsch said the partnership with the cocoa production cooperative is primarily a “memorandum of understanding” aimed at improving the livelihoods of farmers.
The announcement coincided with the National Cocoa and Chocolate Day, held annually in Abidjan, Côte d’Ivoire.
“Improving farmer incomes requires a holistic approach and collaboration across the public and private sectors,” said Tricia Brannigan, Hershey’s Executive Vice President and Chief Procurement Officer.
