event report
deforestation concerns. Renzo Verne eloquently encapsulates the transformative impact of the EU’s No Deforestation Regulation on the Congo and the coffee, rubber, and soy sectors, describing it as a “massive shift” with profound implications for billion-dollar businesses and tens of millions of smallholder farmers. “One of the key elements in order to be in compliance with this legislation is having evidence to demonstrate that the supply chain is not linked to deforestation,” Verne highlighted. He emphasises the critical need for traceability and polygon information, noting that “it’s a complete rat race” as the conventional cocoa and chocolate industry scrambles to create this visibility. Verne painted a vivid picture of the current scenario: “Hundreds of thousands of field officers are now mapping polygons around farms across West and East Africa, Southeast Asia, and Latin America,” all in an effort to position themselves for compliance. He contrasts this frantic rush with TOC’s long-term partnership approach, which embodies a deep level of traceability that has been meticulously developed and continually improved over time. “It’s really night and day in terms of preparation for this specific EUDR,” Verne observed. The push for radical transparency doesn’t end with the EUDR. As Verne astutely predicts, “when all of this data starts getting uploaded into CPU portals, we can only imagine the types of questions that will start coming next.” The scrutiny will extend beyond deforestation to the conditions of production, including the treatment and payment of the farmers at the base of the supply chain. In Verne’s view, investing in long-term partnerships with cooperatives is “a no- brainer.” He advocates for a business model grounded in transparency and partnership, as opposed to the opaque, transactional methods of the past. “That’s the way society is going, and that’s the way that business should be done,” Verne asserted, envisioning a future where sustainability and ethical practices are at the forefront of the global supply chain.
Sourcing principles and farmer resilience Katie Sims, 5 Sourcing Principles Lead at Tony’s Chocolonely, emphasised the significance of long-term relationships as one of the core sourcing principles, explaining: “The reason that has been so important is that
12 Kennedy’s Confection May 2024
after five years, we start to see the long-term results coming through.” She elaborated that initial years with a cooperative involve setting up processes, resources, and support, but it is only after three to five years that the true impact of these efforts becomes visible. “It takes time to build up the skills, build up the awareness within communities, and then you start to see the impact of the five sourcing principles as a package,” she noted. Katie acknowledged that while the program has seen successes, there is always room for improvement. She pointed out that this year has been particularly challenging for cocoa production due to climatic conditions, with cooperatives losing 25 to 30% of their cocoa. “We’ve been working on this for five years, but it’s clear we need to do more,” she said, emphasising the need for continuous review and innovation. Katie highlighted several areas where the program is making strides and where there is potential for further development: Emmanuel Ankama, Ghana Productivity
Lead, shed light on the climate impacts in Ghana and highlighted Tony’s Chocolonely’s ongoing efforts to address pesticide
management issues. Through initiatives like the CABI pilot project, the organisation seeks to empower farmers to manage pests effectively while reducing reliance on harmful chemicals. Katie shared the enthusiasm about the pilot projects in Ghana focusing on lower input and lower pesticide use, which promise to enhance climate resilience and boost farmers’ incomes. “The five sourcing principles is a package, and we always have to think about how each part impacts the other,” she remarked. Katie shared findings on the amplified
impact when combining different principles. For instance, the presence of a school canteen not only ensures children are well- fed but also increases school attendance. “When you see the data together, you really see that outsized impact and the potential that has,” she explained. Katie concluded by stressing the importance of finding the right combinations of interventions to maximise impact. “We’re really looking for those winning combinations, how to make sure we’re bringing the right aspects of the five sourcing principles together to create
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