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26th WCF Partnership Meeting &
Cocoa Sustainability Trade Fair - Day 1
October 15-16, 2014
Copenhagen, Denmark
# WCFPM @WorldCocoa
Thanking Our Sponsors
Embassy of Côte d´Ivoire in Denmark
Visit the Cocoa Sustainability Trade Fair
Embassy of Côte d´Ivoire in Denmark
WCF Partnership Meetings
Serving as the global platform for sustainable cocoa since 2000
Welcoming New Members in 2014
WCF Member Companies
Raul
Ocazionez
Foundation
Quality Candy PT. Hope Indonesia
Tulip Cocoa
As of September 2014
Carsten Lyngsø Thomsen
CEO, Toms
Carsten Lyngsø Thomsen, CEO
Carsten Lyngsø Thomsen, CEO
Barry Parkin WCF Chairman
Bill Guyton WCF President
Cocoa Break
“Defining Sustainability, Standards and
Certification”
Introduced by:
Panelists: Howard-Yana Shapiro, Mars, Incorporated
Jason Clay, World Wildlife Fund
Do Standards and Certification= Sustainability?
Howard-Yana Shapiro, PhD
Chief Agricultural Officer, Mars, Incorporated The 1st Mars, Incorporated Fellow
Senior Fellow Plant Sciences, The University of California, Davis Distinguished Fellow, The World Agroforestry Centre
WCF Copenhagen
22 October 2014 17
No matter how many opinions you line up, you can’t vote nonsense into truth!
Modified from Kevin Cameroon
CycleWorld 2014
Why Cacao “Science” Must Translate to Sustainability?
Without new “science” the industry will stagnate, one has to only look at current low yields, little disease resistance, climatic unadaptability to see the future No single scientific advance will sustain the industry Soils are as important as sequencing Microbiomics are as important as marketing Phytoecology is as important as pathogenicity Needs to be demand- driven not supply-led (esp. by farmers) Possible ≠ Feasible ≠ Practical ≠ Profitable Not all of science developed will work Critics will coat it with caveats, conditions, qualifiers Remember the biggest consumers of cacao are pests, disease and insects It will cost money, real change always does
Why Certification?
$100,000,000
37% of the rural children in Africa are stunted! Physically! Neurologically! Economically!
Aflatoxin/Ochratoxin
Causes liver cancer and stunting Found in cassava, cacao, maize, peanuts, millet, rice, sorghum, sunflower seeds trees nuts and many spices.
How do we measure the sustainable health of the cacao sector?
Perspective on easy definitions…
28
Sustainability
Production of cacao in an economically, socially & environmentally responsible manner that ensures farmers’ livelihoods and security of supply for current and future generations
Standards
Criteria which must be met when producing cacao in order to ensure that ‘sustainability’ is realized
Certification
Third party verification that the cacao meets the criteria in the standard and is therefore considered ‘certified’
Easy
Hard
What is hard to define?
Winner and losers
Problem based (utility, not pure curiosity)
Social, Cultural, Environmental, Ecological, Economic change
Testing hypothesis, constructs, paradigms
Systematic/experimental approaches
Observations (repeated)
Independent thinking, deductive reasoning
Documented and shared
Undergoes critical peer review routinely (credible)
Validated, revalidated, revisioned (robustness)
Unplanned serendipity
Really progressive, building on base of evidence and knowledge
450 4750
10675
Scale and Impact
Impact
Scale
Certify Poverty
Sector & Livelihoods Transformation
Certify Prosperity
Niche success
Wasted Opportunity
Certify Poverty
Issues and Opportunities
Profitable farming
businesses
Investing in inputs & training
Adoption of modern
techniques
Action aligned to consistent
goals
Consumers concerns
Chasing cash premiums
Passing annual audits
Fragmented efforts
“Why should I care about future generations – what
have they ever done for me?” Groucho Marx
Lunch & Cocoa Sustainability Fair
Dansk Industri Foyer
“Current Developments and Next Steps in Cocoa Sustainability”
Moderator: Bruce Wise, International Finance Corporation
Panelists: Gerard Manley, Olam
Han Loke Fong, International Cocoa Organization (ICCO) Joost Oorthuizen, IDH/The Sustainable Trade Initiative Massimiliano Wax, Rizek Cacao Sona Ebai, World Cocoa Foundation
“Future ISO/CEN Standards: A Tool for Mainstreaming Sustainable Cocoa”
Presenters: Jack Steijn, CEN Committee on Sustainable and Traceable Cocoa
Nicko Debenham, Barry Callebaut
Panelists: Antonie Fountain, Voice Network
Edouard N’guessan, Le Conseil du Café-Cacao (Côte d’Ivoire)
Isabelle Adam, European Cocoa Association Joseph Larrose, Touton Pierre Etoa Abena, Office National du Cacao et de Café (Cameroon)
©World Cocoa Foundation 2014 | All rights reserved
ISO/CEN Standards: A Tool for Mainstreaming Sustainable Cocoa
ISO International
Standards Organization
Governments Producer Countries
Industry Trade
Associations
CEN European
Committee for Standardization
Civil Society Liaisons from international organizations
National Mirror Committees
and delegates to international ISO
meetings
DEFINING SUSTAINABLE
COCOA
©World Cocoa Foundation 2014 | All rights reserved
Planet (EN ISO 19381-2)
Profit (EN ISO 19381-2)
People (EN ISO 19381-2)
Management System (EN ISO 19381-1)
CEN/ISO Standards: A Tool for Defining and Mainstreaming
Sustainable Cocoa
Traceability (EN ISO 19381-3)
Conformity Assessment (EN ISO 19381-4)
(based on ISO 17065)
Defines: “3 levels of Performance Requirements”
entry (max years to be set)
medium (max years to be set)
high (end level)
Indicators
Defines: “Management in Farmer Organization”
Leadership, Resources, Documentation
Planning, Farm Development Plan
Monitoring, measurement, improvement
Defines: Traceability of Sustainable Cocoa
Defines: Requirements for 3rd party conformity assessment
bodies (certification)
“The Path Forward for Certification”
Presenter & Moderator: Jerwin Tholen, KPMG Advisory N.V. Panelists: Andreas Kratz, Fairtrade International Daan de Vries, UTZ Elan Emanuel, Fair Trade USA Götz Schroth, Rainforest Alliance
Presentation WCF meeting
15 October, 2014
Presentation by:
Jerwin Tholen, KPMG Advisory N.V.
The Path Forward for Certification
Presentation The Path Forward for certification
October 15th, 2014
Standards
• Farmer level and chain of custody standards launched
• Scheme identity with target impacts
Global recognition
• Mars, Hershey, Ferrero, Natra and others have committed to 100% sustainable
cocoa by 2020 using Utz, Rainforest Alliance and Fairtrade
• Certified chocolate across the world (e.g. Utz on products in 108 countries)
Scaling up
• Niche to 20% of certified cocoa in a few years
• # auditors increased
• Funds acquired for implementation / farmer development
The voluntary sustainability standards (VSS) deserve credit for
their role as a driving force in mainstreaming sustainability
Sources: KPMG (2013) Raising the Bars, KPMG (2014) A Taste of the Future
Presentation The Path Forward for certification
October 15th, 2014
Literature also cites more positive than negative effects of
certification …
Positiveeffect
No effect Negativeeffect
Positiveeffect
No effect Negativeeffect
Positiveeffect
No effect Negativeeffect
Coffee Cocoa Cotton
Effe
cts
men
tio
ned
in a
rtic
les/
#of
arti
cles
Access to education & training Working conditions Gender equalityFarmer economy Local natural environment Group level
Sources: KPMG (2013) Improving smallholder livelihoods: Effectiveness of certification in coffee, cocoa and cotton”
■ Most mentioned: Access to education and training, Farmer economy, Local natural environment.
Presentation The Path Forward for certification
October 15th, 2014
Key mechanisms of certification should impact farmer
income……
Sources: KPMG (2011) Sustainable Cocoa Fund Study – Cost/benefit analysis of cocoa certification in West-Africa, KPMG (2012) Advantages and disadvantages of coca certification
ΔPrice (premium)
Price
Volume
ΔVolume
(GAP,
Planting
material,
Fertilizer)
Base yield
Presentation The Path Forward for certification
October 15th, 2014
Standards
• Prove yield increase and community impact (basic education, child labor
prevention, women’s empowerment)
• Improve (transparency on) internal control systems, premium distribution
• Show advantages over proprietary sustainability programs / national standards
Global recognition
• Sell certified products in Brazil, China, Colombia, India, Russia, South Africa,
Turkey and Vietnam (70% of worlds confectionary growth)
Scaling up
• Decrease % unsold certified cocoa
• Find ways to include less profitable farmer segments
• Knowledge sharing ‘good practises’ (pre-competitive)
…..however, there are huge challenges ahead in order to
contribute to true sector sustainability
Cocoa Break
“Perspectives on the Meeting Theme: ‘Connecting Sustainability, Standards
and Certifications’ ”
Moderator: Bill Guyton, World Cocoa Foundation Panelists: Edouard N’guessan, Le Conseil du Café-Cacao Jason Clay, World Wildlife Fund Nicko Debenham, Barry Callebaut Stephen Opuni, Ghana Cocoa Board
Day 1
Roundup
# WCFPM @WorldCocoa
Reception & Dinner
Reception: 6:00 – 6:45, Foyer
Dinner: 7:00 – 9:00 pm, Top Floor Dining Room
# WCFPM @WorldCocoa