Global Food Company Nestlé has announced plans to invest €1.25 billion by 2030 in projects that tackle child labor risks, increase farmer income and achieve full traceability in their cocoa production. The extra funding represents a tripling of the current annual investment in the areas.
The plan includes an accelerator program that will see a cash incentive of up to €481 a year for the first two years paid directly to households involved in cocoa farming for specific activities such as enrolling their children in school. The amount is to drop to €240 a year after the first two years.
The company says it intends to reward other activities including the implementation of good agricultural practices, such as pruning, which increases crop productivity, agroforestry activities to increase climate resilience, like planting shade trees.
It will also be recognized, as will the generation of diversified incomes from the growth of other crops and the raising of livestock.
Mark Schneider, Nestlé CEO said, “Our goal is to have an additional tangible, positive impact on a growing number of cocoa-farming families, especially in areas where poverty is widespread and resources are scarce, and to help close the living income gap they face over time.”
“Building on our longstanding efforts to source cocoa sustainably, we will continue to help children go to school, empower women, improve farming methods and facilitate financial resources.”
The company believes the project will assist the transition to more sustainable cocoa farming by encouraging behaviors and agricultural practices that should build social and economic resilience over time. The payments won’t be based on the volume of cocoa produced by farmers, thereby ensuring that those with small and large operations will be treated equally.
The program was piloted with 1,000 farmers in Côte d’Ivoire two years ago and will be expanded to 10,000 more in that country and then into Ghana in 2024.
After that, it will be reassessed before potentially being extended further to all cocoa farmers in its supply chain.
A range of products with cocoa sourced from the program will also be introduced and marketed to consumers as a way for the company to generate funds.
Full traceability and segregation of its cocoa products from origin to the factory will also be implemented by Nestlé.
Cocoa is presently the biggest driver of deforestation in Côte d’Ivoire.
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