Sustainability

Ofi Cocoa partners with USAID to deliver enhanced supply chain transparency

By Anthony Myers

- Last updated on GMT

ofi said it is 'continuing to move the needle' in its supply chain transparency. Pic: ofi
ofi said it is 'continuing to move the needle' in its supply chain transparency. Pic: ofi

Related tags ofi sustainability Supply chain Cocoa association of asia

Major cocoa supplier ofi (olam food ingredients), has claimed recent developments in data and technology are behind its progress towards creating a more sustainable supply chain.

The group’s Cocoa Compass sustainability ambition is also providing food and beverage companies with enhanced traceability and transparency ahead of new regulations in Europe and beyond, it has claimed in its latest report.

The latest report highlights achievements based on 2022 data and includes:

  • New analysis showing over 30,168 farmers in ofi’s cocoa supply chain are earning a living income, putting the business on track to reach its 2030 target of 150,000 cocoa farmers earning a living income.
  • A 395% increase in the number of children receiving education support in 2022, compared to the 2018 baseline.
  • A 15% increase in the number of households covered by ofi’s Child Labor Monitoring and Remediation System (CLMRS).
  • 6 million trees distributed by ofi, working with its customers and partners, for agroforestry and income diversification, from 2018 to 2022.
  • 79% of farms in ofi’s sustainability programs have been polygon mapped.

USAID

Some of the work has also involved the United States Agency for International Development (USAID).

Its Indonesia Mission Director, Jeff Cohen, said: "We are proud to be working together with ofi and the Hershey Company to encourage cocoa farmers to adopt more sustainable agriculture practices—like diversifying their crops and allowing more trees to remain on their land—which will strengthen their resilience against climate shocks and improve their livelihoods.”

Technology is critical to delivering impact with USAID and other partners.

ofi said its latest advancements leverage the capabilities of its sustainability management system, AtSource. This technology can be available to customers upon request, providing companies with detailed data and insights on where and how their cocoa and other ofi ingredients are sourced, including their social and environmental impact. It also complements specific solutions that ofi is implementing to prepare for the incoming European Deforestation Regulation (EUDR).

This technology includes:

  • A Carbon Stock Monitoring and Measurement tool – created in partnership with geospatial specialists NGIS – uses AI-powered analysis to provide high-quality data on forest cover and tree loss to help customers monitor for deforestation, as well as understand how interventions like agroforestry and shade tree planting affect carbon stocks across different plots of land.
  • An award-winning[ Carbon Scenario Planner that enables customers to understand the impact of different agricultural practices on GHG emissions and model the most efficient methods for reducing greenhouse gas emissions in their supply chain and delivering on their Scope 3 emissions targets.

Cocoa Farmer Income Tool 

An updated Cocoa Farmer Income Tool shows detailed income estimates for a representative sample of farmers in ofi’s cocoa sustainability programs. The tool provides a clearer picture of where actions on the ground are helping cocoa farmers earn more and where customers can partner with ofi on initiatives to help close income gaps.

ofi Cocoa, Managing Director & CEO, Tejinder Singh Saraon said: “The granularity of our data, coupled with our extensive footprint on the ground in origin countries and strong relationships with farmers, means we can continue to move the needle with collaborators like USAID.

“We’re also investing in technology to help some of the world’s biggest food and beverage brands meet the demand from their consumers for delicious, on-trend products with robust sustainability credentials. I’m incredibly grateful that our customers continue to partner with us on our Cocoa Compass sustainability journey. Although there are no easy solutions to the complex challenges facing cocoa farmers and the natural world, I'm proud of the impact we’re having together.”

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