By Nneka Nwogwugwu
Nestlé will triple its cocoa sustainability funding to 1.3 billion Swiss francs ($1.4 billion) by 2030, using some of the money to provide financial incentives to cocoa-farming families in Africa who help prevent child labour and reduce their environmental footprint.
The world’s largest food manufacturer said it will pay farmers who implement efforts that include sending their children to school; adopting good agricultural practices, such as pruning, to increase crop productivity; using practices like planting shade trees to boost their climate resilience; and diversifying their household income by planting other crops or raising livestock.
Cocoa production, the majority of which comes from Ivory Coast and Ghana in West Africa, has long been dogged by environmental concerns and allegations that companies depend on child labor but have not done enough to eradicate it from their supply chains.
Nestlé said the payments will be divided between the farmer and their spouse in order to empower women and improve gender equality. The Nespresso and Toll House maker also said it will work with nonprofits, including the International Cocoa Initiative and Rainforest Alliance, to monitor participation.
Farmers and their families will receive up to $536 during the first two years to encourage participation. The amount will be reduced to $268 after that, the Switzerland-based company said. The money will be paid directly to cocoa-farming households. Building off of a pilot in 2020 with 1,000 farmers in Côte d’Ivoire, Nestlé said it will expand the program to include 10,000 families in the country this year, before extending it to Ghana in 2024.
“The program rewards cocoa-farming families for practices that help them increase their incomes and benefit the environment and community. Those incentives start building long-term changes,” Schneider said. “Ultimately, those changes contribute to better farmer income, sustainability, and social impact, while providing farmers and their families an immediate financial benefit.”
