Dive Brief:
- Hershey has announced a new agreement as part of its ongoing efforts to support cocoa growers, improve children’s well-being, and protect the environment in cocoa-producing regions.
- The company’s “Cocoa For Good” program focuses on addressing poverty, malnutrition, at-risk youth, and vulnerable ecosystems in West Africa’s Ivory Coast, the main cocoa growing region. Initiatives include improving nutrition access, eliminating child labor, increasing household income, and implementing a zero-deforestation policy.
- This partnership aims to enhance cocoa supply stability, increase yields, support healthier and better-trained farmers, and promote environmental sustainability.
Dive Insight:
In a recent ESG report, Hershey set a goal to achieve full sourcing visibility for its cocoa volume in Ivory Coast and Ghana by 2025.
As of December 2023, the company had invested over half of its $500 million commitment to “Cocoa For Good,” with the latest agreement marking a significant milestone.
The chocolate industry has faced challenges in its cocoa supply chain, leading to increased cocoa prices that are expected to remain high through at least September 2025. This has prompted producers like Hershey and Mars to raise prices on their products.
Hershey’s partnership with cocoa-producing cooperatives focuses on improving farmers’ livelihoods and was announced during the National Cocoa and Chocolate Days in Abidjan, Côte d’Ivoire.
Tricia Brannigan, Hershey’s Vice President and Chief Procurement Officer, emphasized the importance of a holistic approach and collaboration across public and private sectors to improve farmer incomes.