How The Hershey Company Is Improving Its Cocoa Value Chain

The Hershey Company has five-year agreements with no fewer than nine cocoa-producing cooperatives in Côte d'Ivoire.

This forms part of its Cocoa For Good strategy, a 10-year, US$500m investment aimed at addressing the complex challenges facing cocoa farmers.

It's hoped that these agreements will continue to build lasting relationships with farmers, enabling a more resilient supply.

Improving farmers' livelihoods

Hershey's announced it had secured a raft of agreements with cocoa producers during the annual National Cocoa and Chocolate Days held in Abidjan, Côte d'Ivoire.

At the heart of the agreement is a memorandum of understanding (MoU) between Hershey's, commodity broker Sucden and the nine cooperatives, which aims to:

• Partner with farmers to professionalise cocoa farming and improve their profitability
• Invest in community-based resources that improve household wellbeing
• Preserve the environment and strengthen farm resilience

Long-term collaboration between the three entities provides stability for farmers and an ability to more directly engage in addressing on-the-farm challenges.

"Improving farmer incomes requires a holistic approach and collaboration across public and private sectors," says Tricia Brannigan, Vice President and Chief Procurement Officer at Hershey's.

"Collaboration happens best when you have trust. Trust is built over time through strong, long-lasting relationships."

Building resilient communities within cocoa supply chains

The Hershey Company's series of agreements aligns with Côte d'Ivoire's National Strategy for Sustainable Cocoa, designed to ensure a coordinated and lasting approach to addressing key challenges in the Ivorian cocoa sector.

This important step taken by Hershey's forms part of a series of significant investments in the wellbeing of cocoa farming communities. In addition to its Cocoa for Good investment, Hershey launched a US$40m Income Accelerator programme in 2023.

It is also funding the construction of primary schools in farming communities through an agreement with The CNS (the National Oversight Committee for actions against trafficking, exploitation and child labour in Côte d’Ivoire and International Cocoa Initiative.

Cocoa For Good

Hershey's launched its Cocoa For Good strategy in 2018. 

The goal is to unleash more goodness inside cocoa communities and help create a resilient future by tackling systemic social and environmental challenges.

By investing half a billion dollars by 2030, it aims to improve income resiliency and livelihoods, prioritise children's wellbeing and protect the environment.

Hershey's has continued to deliver on its commitment of 100% independently verified cocoa, first achieved in 2020.

The business sources cocoa through the world's most recognised cocoa-certifying organisations, Fair Trade USA and Rainforest Alliance, along with other independently-verified programmes through suppliers that meet the Cocoa Key Requirements.

Hershey's considers traceability to be a vital tool to understand how and if supply chains comply with its policies, standards and values.

Over the past few years, it has invested in improving the traceability of its cocoa supply chain, achieving 88% sourcing visibility over its cocoa volume originating from Côte d'Ivoire and Ghana. Reaching 100% by 2025 looks increasingly feasible. 

In April 2023, Hershey's launched a partnership with the Foundation for the Parks and Reserves of Côte d'Ivoire to support the protection and management of the Mabi-Yaya Nature Reserve. The partnership includes reforestation of nearly 1,000 hectares inside the reserve.

Hershey's has also committed to end deforestation across its supply chain by 2030, with a company-wide no deforestation policy.

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