Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C01 A thriving cocoa sector for generations to come Cargill Cocoa Promise commitment and ambition The Cargill Cocoa Promise is our commitment to improving the lives of cocoa farmers and their communities, and, in doing so, securing a long‑term supply of cocoa. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C02 A thriving cocoa sector for generations to come continued

Our ambition is to accelerate History and evolution We have always been involved in the discussion, How the Cargill Cocoa Promise contributes Sustainability is not a secondary issue for and growing insight made us aware of the need to positive and long-lasting change progress towards a transparent Cargill Cocoa & Chocolate, but part of our DNA. for a sustainability strategy that is intertwined with Our long-term goal is to contribute to a thriving global cocoa supply chain, enable It is central to how we do business, essential to our business strategy. The Cargill Cocoa Promise cocoa sector for farmers and their communities. farmers and their communities our global cocoa bean sourcing strategy, and is such a strategy, and we know that continuous To make this happen, improvements are to achieve better incomes and vital to improving the livelihoods of farmers and learning and improvement ensures our programs needed to farmer and community livelihoods. their communities. are effective, relevant and impactful. That is why we We will contribute by professionalizing coops living standards, and deliver a established a Results Framework and invested in a and supporting them in achieving progress in sustainable supply of cocoa and We introduced the Cargill Cocoa Promise in strong Monitoring and Evaluation system to analyze farmer training, farm development and community chocolate products. We believe this 2012 as part of an overarching strategy to build our impact. We continuously work on embedding support. Working closely with our stakeholders will contribute to a thriving cocoa a sustainable cocoa supply chain, and to align sustainability in decision-making on all levels within and partners is crucial to succeeding in our our existing efforts in our five cocoa-growing the organization. sustainability strategy. A learning and continuous sector for generations to come. countries: Côte d’Ivoire, Cameroon, Indonesia, improvement process is central to this approach. Ghana and Brazil. The Cargill Cocoa Promise focuses on making a difference to farmers and their communities.

Start of the Launch of first First premium Launch of Cargill Start of Launch Cargill Cocoa quality seminars Farmer Field School payments Cocoa Promise Coop Academy Promise Results Framework

2006 2008 2014

2003 2004 2005 2007 2009 2010 2011 2012 2013 2015 2016

Reviving cooperative Certification First Cargill Cocoa Second Cargill Cocoa programs established Promise progress report Promise progress report Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C03 A thriving cocoa sector for generations to come continued

Our result areas Community livelihoods Partnerships with farmer organizations are key. Farm development Farmer livelihoods To reach their full potential, and to also contribute They enable us to reach many smallholders. Conditions on farms have a major impact on By participating in the Cargill Cocoa Promise, to the community and the environment, farmers Experience shows us that helping these farmers’ productivity. Key factors include nutrients farmers will become empowered entrepreneurs have to be part of a thriving community. organizations build their capacity provides a in the soil and shade provided to cocoa trees, who manage professional farms that generate These communities improve quality of life today, solid foundation and engagement for farmer as well as the appropriate use of high-quality a living income or beyond. They will maximize and enable a bright tomorrow. By participating training, farm development and community planting material, fertilizer, and crop protection. the profitability of their cocoa farms by optimizing in the Cargill Cocoa Promise, communities will support activities. When farms are not sufficiently nurtured in this way, cocoa production and using inputs efficiently acquire better social services related to education, cocoa productivity can decline. Access to quality and in an environmentally sustainable manner. health and nutrition. Community members will Our intervention areas crop inputs, required for healthy and profitable unite to protect children from child labor and Farmer organizations farms, is often absent or insufficient at best. empower women. Business-oriented farmer organizations are We provide farmers with access to the resources the lever for improved farmer and community needed to make their farms viable, productive and livelihood, and the starting-point for interventions in profitable. In addition, we stimulate the creation of farmer training, farm development and community a viable market for agricultural inputs – with high- support. Through, and with them, we can reach quality, proven inputs available to farmers along and support farmers and their communities. with appropriate financing possibilities. To stimulate professionalization we encourage A thriving cocoa sector farmer organization participation in the Cargill Community support for generations to come Coop Academy. The Cargill Cocoa Promise focuses on community- driven development. Decisions regarding programs Farmer training and interventions are based on what communities Community livelihoods Utilizing Good Agricultural Practices (GAP), effective tell us they need to develop. Farmer livelihoods health & safety procedures, and good business practices, whilst also taking account of the social We strengthen cocoa-growing communities and environmental impact of cocoa farming, are by improving their access to services, including all integral to running professional and responsible education, health and nutrition. At the same farms. This is why we invest in farmers’ capacity time, we help make local people more aware of through Farmer Field Schools. Our training teaches the social benefits of improving child protection, farmers the techniques and practices they need to sending children to school, and empowering improve the agricultural practices on their farms, women. These interventions result in increased run them as profitable businesses, and play a community wellbeing, improved social services Farm development Farmer training Community support positive role in their communities. and empowered women.

Cooperatives and farmer organizations Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C04 A thriving cocoa sector for generations to come continued

Measuring progress, performance contributing to a thriving cocoa sector To find out more visit: and learnings for generations to come www.cargillcocoachocolate.com We measure progress and performance, and and click on the Cargill Cocoa Promise. capture learnings at three different levels: To understand which interventions work best for farmers and their communities and why, 1) Results of our interventions (farmer we focus on the results of our interventions and training, farm development and programs, analyzing these leads to learnings on community support): either through their how the Cargill Cocoa Promise influences farmer reach (the number of farmers provided and community livelihoods. Insights from our with fertilizer) or their adoption (the data on reach and adoption, together with our number of farmers using fertilizer) experiences in the field, provide information on 2) Results of our programs (farmer and which interventions are successful and which are community livelihoods): refers to the not. This means we can apply our lessons learned changes that occur thanks to multiple to continuously improve our approach, design successful interventions (for example, relevant programs and interventions, and enhance the percentage change in yield or net our long-term impact. income for farmers that have received and used the fertilizer) Partnerships Results are achieved with our partners from civil 3) Impact of the Cargill Cocoa Promise: society, and the public and private sectors. We can focuses on the overall objective of count on over [x] well-established partnerships with farmers, communities, farmer organizations, NGOs, governments, institutions, academia, customers, other cocoa businesses and local stakeholders in cocoa-growing countries. Together we contribute to proven improvements in the livelihoods of farmers and their communities. “ Innovative pilot projects are US$2.4 million crucial. We’re trying to understand Through our $2.4 million partnership the way forward with respect to with CARE and the Conseil du Café-Cacao, we provided education to 1,500 children smallholder development. Fail “Only when farmers take and increased access to healthcare small and quick. Learn and adapt. their destiny in their own impacting 25,000 people in 14 cocoa- Find what works and expand. hands will we have a truly growing communities. Be brave.” sustainable cocoa sector.” Camille Paran Lionel Soulard Sustainability Country Lead Indonesia Cargill West Africa Managing Director Cargill Cocoa & Chocolate Cargill Cocoa & Chocolate Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C05

Working US$8 million paid to farmer organizations as premiums through their with farmer participation in sustainability organizations certification schemes and 96% of our cocoa was bought empowering through cooperatives in Côte d’Ivoire last year them Cargill believes that professional and business-oriented farmer organizations should take responsibility for management of sustainability programs, supporting the implementation by their farmers and in their communities. Our approach Business-oriented farmer organizations are the lever for an improved farmer and community livelihood and are the starting point for interventions in farmer training, farm development and community support. Through, and with them, we can reach and support farmers and their communities. To stimulate professionalization we encourage farmer organizations to participate in the Cargill Coop Academy. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C06 Working with farmer organizations and empowering them continued

What does success How will we Progress highlights Our plans for 2016: look like? measure progress? Reach and adoption: –– Roll out Coop Academy Financially viable farmer organizations that: In progress Recently started program in Cameroon –– Provide farmer services –– Raise awareness on benefits We will measure farmer organizations’ 181 96 of diverse and inclusive –– Have robust internal management systems progress against an index. They will be rated farmer organizations Cocoa Producers Groups farmer organizations –– Assume responsibility for implementing against these categories: supported through the (CPG) became fully –– Monitor progress of our sustainability programs, together with farmers –– Internal management Cargill Cocoa Promise operational in Indonesia affordable finance initiative, and communities in West Africa –– Operations known as “Doni Doni”, –– Play a vital role in everything we do to move in Côte d’Ivoire the Cargill Cocoa Promise forward –– Financial management –– Use learnings from our –– Sustainability 320 96% assessments to improve Keep track of volumes of certified sustainable targeted support to leaders, from 80 of our cocoa was bought cocoa delivered to Cargill farmer organizations cooperatives, have through cooperatives in Achieve farmer livelihood goals (see page C12) completed or are currently Côte d’Ivoire last year Achieve community livelihood goals enrolled in the Coop (see page C25) Academy Results: US$16 million paid to farmers and farm organizations as premiums through their participation in sustainability certification schemes in 2015

What we have learned: – We believe that women and younger farmers are currently under-represented in farmer organizations. We decided to address the topic of gender by introducing a diversity module to the Coop Academy Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C07 Working with farmer organizations and empowering them continued

Farmer organizations make vital contributions to the present and future prosperity of farmers and their communities. They also enable us to achieve our sustainability goals. We want these organizations to become successful businesses in their own right – run by empowered men and women. We will know we have achieved this when farmer organizations are ready to run their businesses and support their communities independently with minimal or no support from us.

Why farmer organizations are important Farmer organizations worldwide We are a global cocoa and chocolate business Beyond the 101 farmer organizations we work with that sources locally with more than 400,000 in Côte d’Ivoire, we also work with 60 in Cameroon. farmers, around 99% of them smallholders. There are a few cooperatives in Ghana, but more 181 farmer cooperatives in West Africa improve are needed and we are involved in establishing farmers’ access to markets, help them receive new ones. In Indonesia, where there are no farmer a fair income from their crops, and ride-out any organizations at all, our challenge is to empower ups and downs in cocoa prices from year-to-year. farmers to become more organized or to find Commercially and logistically, our relationships with ways to reach them individually. Working with farmer organizations are essential. For example, Swisscontact, we have established 80 new Cocoa through 101 partner cooperatives we are able to Producers Groups (CPG) in 2014, bringing the reach 70,000 farmers in Côte d’Ivoire. number of CPGs to 117 in total. In 2015, 96 of these became fully operational. CPGs or Kelompok Tani Farmer organizations can make sure farmers (to use their Indonesian name) are groups of around get what they need to farm more profitably, 25-30 farmers, through which we can facilitate productively and sustainably – whether through training. We have plans to establish more farmer training, access to finance or the payments they organizations in Indonesia next year. secure for farmers through sustainable cocoa certification schemes. They also contribute In Cameroon, we have recently signed a financially to community development projects, Memorandum of Understanding with a number including improvements to schools and other of farmer cooperatives to introduce our Coop services, and in some cases, by running the local Academy Program. The program is a tried and school bus and ambulance service. tested way to support cooperatives in building their capacity and reach. Beyond supporting farmers and their communities, they also help us to create a sustainable business mindset in our supply chain. We are proud to work with them. Empowering cooperative leaders Evaluation already shows that participating via the Coop Academy cooperatives have made changes towards The Coop Academy, launched in 2013, is combining professionalization. For example, general meetings 28 days of intensive classroom training with a year are now regularly organized and held with the of personalized on-the-ground coaching. Since its support and involvement of representatives of various launch, 320 leaders, from 80 cooperatives, have producer members. completed or are currently enrolled in the program. We run the Coop Academy in partnership with We will launch Coop Academy in Cameroon and sustainable trade initiative, IDH, TechnoServe, our ambition is to take it into other origin countries IFC and INPHB (Institut National Polytechnique in future. Houphouet Boigny). Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C08 Working with farmer organizations and empowering them continued

Professionalizing farmer organizations Farmer organizations are Working together with SCOPEinsight, being assessed against TechnoServe, IFC and farmer organizations, these criteria: we have assessed the professionalism and management maturity of a number of farmer Internal management organizations participating in the Cargill Cocoa Governance, Promise. We conducted a pilot in 2014, and internal organization, followed it up this year with an expansion phase business planning. involving 25 farmer organizations spread across Côte d’Ivoire. Operations Logistics, storage, Our overall objective is to develop interventions GAP, processing. that improve the competitiveness and long-term sustainability of farmer organizations involved in Financial management our programs. Management, planning, budgeting. The assessment confirmed that most of the farmer organizations involved run their general operations Sustainability well and are continuously improving their financial Social, environmental. management processes. Market Clients, market risk, marketing.

External risks Biological, environmental, Creating new cooperatives in Ghana weather. Farmers in Ghana have created 20 new cooperatives, with support from us and from Enablers our local partner Community Empowerment Capacity builders, government, Associates. Each of the cooperatives was launched service providers. with 500 members, and farmers in 10 cooperatives have been trained in all aspects of cooperative Supply management, including the legal aspects and good Input suppliers, security of governance. All the cooperatives now hold monthly supply, members/outgrowers. meetings and have motivated their members to train in good agricultural practices. Their rapid Reference: SCOPEinsight growth and continuing success for farmers, shows Assessment Chapters just how effective farmer organizations can be. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C09 Working with farmer organizations and empowering them continued

Making farmer organizations more Investing through certification diverse and inclusive Certification schemes, and the benefits they bring, How do cooperatives invest their certification premiums? We want to make farmer organizations more provide the catalyst to get farmers involved in 70% diverse and inclusive. The limited participation training and follow it through to completion. 60% of women and young adults restricts their ability to 50% play a bigger role on farms or in local communities, On average, our programs pass close to 70% of 40% as income generators, organizers and leaders, certification premium payments directly back to 30% and deprives farmer organizations of a wealth farmers and farm organizations. The remaining 20% of untapped talent. 30% is invested in programs that also benefit 10% farmers, but in more indirect ways – for example, 0% Attracting young adults to become cocoa farmers farmer training and coaching. Since we introduced Strengthening Farming services Community Administration Others is vital to ensure a stable, reliable supply of cocoa the use of certification programs, US$60 million cooperative projects and Governance for future generations. Working with farmer US$25 million, 2014 has been paid in cash infrastructure organizations to convince younger women and premiums, including US$8 million paid directly to 2010 – 2011 2011 – 2012 2012 – 2013 2013 – 2014 2014 – 2015 men that they can make a living income or better farmer organizations in 2015. for their families in prosperous cocoa-growing communities is the best way to ensure a pipeline Farmer organizations in turn invest this in projects of future production. to boost productivity, farm development and benefit Certification by region (FY 2014/2015) Certification by type (FY 2014/2015) the community, as shown by the table opposite. We have introduced a diversity module into We track in full detail how these premiums are 93% EU + Swiss our Coop Academy program, which stresses distributed and how farmer organizations decide to the opportunities for women in cocoa farming, invest their funds. Recent information shows these 3% NAM 80% UTZ whilst simultaneously working hard to convince are being invested in: cooperative managers of the value that this module 2% Asia 8% Rainforest Alliance –– Strengthening farmer cooperatives by providing brings for farmers and communities. And we are crop financing, improving logistics, employee 7% Fairtrade working with the WCF to bring productivity training 1% NAFMEA health and safety, certification activities to 1,000 women and 7,000 of their family members in Côte d’Ivoire. This training aims to encourage –– Community projects such as schools and 1% EEU 5% Others women to participate in cocoa farming and education, healthcare and road rehabilitation supports them in growing their farms to become –– Farmer services, crop protection and viable businesses. Read more on page C31. fertilizer distribution Volume of certified cocoa beans

100%

80%

“ Access to finance and better 60% transportation will make a critical difference to the success 40% of the cooperatives. Successful 20% cooperatives are critical to the We are encouraging more cocoa farmers in Brazil future of cocoa farming and to become UTZ certified. The number of certified 0% farms here has increased from 34 in 2014 to 71 in 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 cocoa communities.” 2015, covering 9,600 hectares (5,500 in 2014) in Axel Kadja the states of Bahia and Espírito Santo. Our goal is Conventional Third-party certified sustainable cocoa Country Sustainability Lead Ghana to have 200 certified farms by 2019. You can read more about the value of certification on page B16. Cargill Cocoa & Chocolate Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C10 Working with farmer organizations and empowering them continued

“ The costs that we have saved by Supporting farmer cooperatives not having to repair old trucks “Step by Step” will help us pay for the new trucks. In Côte d’Ivoire, we work together with the International Finance Corporation and Société We won’t even be aware that Ivoirienne de Banque (SIB) to develop an we’re spending money for those innovative, award-winning initiative that gives trucks… We will be repaying the farmers the affordable finance they need to trucks step by step through the improve farming logistics. sales of our cocoa beans.” Logistics can be a big challenge for farmers and Sawadogo Moussa cooperatives. The trucks they use to transport …have a need for logistics. ... but they have difficulty Chairperson of Cooperative CINPA cocoa beans are often old and unreliable. Dealing with old fleets of trucks accessing finance creates huge maintenance costs The logical solution is to invest in new trucks, 43 participating but these are expensive and the cost of loans coops... can be prohibitive.

So that cooperatives can overcome this problem, we have launched a new kind of vehicle finance in Côte d’Ivoire, together with the IFC, which helped us expand the Cargill Coop Academy. Through our vehicle finance initiative, known as “Doni Doni”, in Côte d’Ivoire, farmer organizations “ Cargill’s initiative embodies the that have taken part in our Coop Academy can get new trucks through a three-year leasing deal SIB provides a three-year IFC-SIB and Cargill agree The IFC set up a risk true scope of sustainability.” that also includes insurance. loan to be able to buy brand upon the content of commercial sharing facility putting FiE Innovation Award, new trucks, and opens bank loans to cooperatives together Cargill and SIB Jury report (extract) Flexible finance of this kind enables cooperatives accounts for cooperatives to save time and money by running new trucks – so they get a long-term return on their investment and move a step closer towards financial independence. 43 cooperatives have taken up the chance to lease 78 new trucks during the first year. Cooperatives each pay 10% of the The advantages that Doni This really is a unique scheme, which has been cost of the truck upfront, and Doni brings recognized by Food Ingredients Europe (FiE), authorize Cargill to deduct 10F per – Spreads cost of equipment which awarded us a prestigious FiE Innovation kilo of cocoa they deliver, to put into acquisition over three Award as the “Sustainability Initiative of the Year”. a savings fund to cover their monthly years and reduces impact lease fees. on yearly treasury The interest rates they pay are lower – Increased effectiveness than any others commercially available of cocoa collection in the field – Reduces maintenance expenses – Coops own truck at the end of lease Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C11 Improving 58,000 farmers are now using pest farmer and disease management livelihoods techniques and products Participating in the Cargill Cocoa Promise will result in 23% farmers becoming empowered average yield improvement entrepreneurs who manage achieved by farmers through applying better plant professional and responsible protection1 farms that generate a living income or beyond. Farmers reach maximum profitability of their cocoa farms, by optimizing cocoa production 56% and using inputs cost efficiently, increase in yields achieved by while protecting the environment. farmers using fertilizers correctly1 Our approach We take a sequential approach to ensuring our farmers become profitable, and we partner with farmer organizations and external partners where necessary, to achieve the best outcomes. Our ultimate aim is for projects to become self-sufficient: –– Farmer Training –– Farm Development: –– making better use of crop protection –– planting better quality and more resilient seedlings –– using fertilizers well

1 Figure is taken from an initial study, based on a sample Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C12 Improving farmer livelihoods

Our commitments Towards 2020 Progress highlights Our plans for 2016: Reach and adoption: In progress Recently started Reach and adoption: –– Roll out farmer training –– All farmers attend Farmer Field Schools and farm development –– Every farmer follows a Farm Development Plan, programs to a greater number Increase the number of farmers with with coaching to implement it successfully 90,000 58,000 of cooperatives, in our measurable improvements in profitability, farmers attended our farmers are now using pest origin countries –– More farmers access affordable crop primarily achieved through better yields Farmer Field Schools and disease management protection products, equipment, fertilizers, –– Provide one-to-one coaching in 2015 techniques and products better quality seedlings and shade trees All farmers benefiting from training and to farmers coaching and following their own Farm –– Farmers apply their training to good effect –– Work with farmers to develop Development Plans Farm Development Plans –– Farmers use crop protection, equipment, Results: + fertilizers, seedlings and shade trees Increase the number of farmers benefiting –– Expand our Yiri , nursery from using crop protection, high-quality and Cacao Allyie programs, –– Farmers effectively implement their planting materials and fertilizer appropriately and roll them out to a greater Farm Development Plans 23% 56% number of cooperatives in * We will report publicly on our specific internal 2020 average yield improvement increase in yields achieved goals, focusing on the results of our initiatives, once Côte d’Ivoire, and eventually achieved by farmers by those farmers using our baseline and methodology has been finalized into our other origins through applying better fertilizers correctly plant protection. This has led to net income increase of US$194

What we have learned: –– Most farmers do not accurately know their farm size –– 42% of farmers grow other crops as well as cocoa Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C13 Improving farmer livelihoods

How to reach full potential

Potential >1,000 kg/ha

350 kg/ha Empowered farmers can thrive by Our sequential approach To enable farmers in our origins countries make optimizing cocoa production on their farms more profitable and productive, we their farms. By running farms as are working through a structured, sequential businesses, using the skills they transition program with them. Our ambition is Farmer Training Farm Development learn at Farmer Field Schools along that almost all the farmers we work with will go through the relevant stages of this program by with the appropriate agricultural 2020, then use the skills they learned in training resources, they can improve cocoa along with the right agricultural resources, to run profitability and make a living income their farms as successful businesses. or better. Following this approach, farmers complete four stages on their journey to build profitable farms: Step 1 Step 2 Step 3 Step 4 Farmer Field Schools Crop protection Planting materials Fertilizer 1. Training in better agricultural practices GAP training Access to crop inputs Access to Access to planting Farmer coaching high-quality materials Farmer business skills planting materials 2. Making better use of crop protection Child labor awareness 3. Planting better quality and more resilient seedlings Training comes first, because it allows farmers Contribution of the use of inputs 4. Using fertilizers well to see how much they can achieve by applying to yield increase the better agricultural practices they learn about. (n=200) As farmers all have different immediate needs, we After this, they can introduce crop protection and work with them as they learn and develop through assess its impact on yields. Depending on the the training, progressing from stage to stage. age and productivity of their trees, the logical 59% Crop protection Training often happens on demonstration farm next step is to plant more robust, productive, plots, where we can show, rather than simply tell high-quality varieties of cocoa seedlings. 29% Full package Enabling farmers to enter sustainability certification them, what they need to know, and where they in turn, can learn by trying out techniques and 11% Good Agricultural programs is key to improving farmer livelihoods. Fertilizer comes last in the sequence. The Practices (GAP) We believe this is a tool to engage farmers to working with materials themselves. importance of completing the other stages of the encourage professional farm management and program to make sure their land is “fertilizer 1% Fertilizer good agricultural practices. Why our approach works ready” and to assess whether or not its use is By working through our program farmers necessary and cost effective, is explained to farmers. The premium farmers receive benefits them can improve profitability and productivity in You can find out more about farmer training on page financially, too. Since we launched them, sustainable ways, but not everything can be C14 and farmer development on page C16. US$60 million has been paid in cash premiums, achieved at the same time. including US$8 million paid to farm organizations in 2015 and US$8 million paid to farmers as premiums through their participation in sustainability certification schemes. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C14 Improving farmer livelihoods Farmer training Farmers can run their farms as successful businesses that produce a living income or better, if they have access to the appropriate training and tools. This is why we provide training and personal coaching, covering good agricultural, social, business, environmental, and health and safety practices. Ultimately, we want all of the farmers we work with to reach this standard, and we will work with cooperatives to achieve this.

What farmer training involves Farmer training in action Our progress Our plans for 2016: Beyond teaching farmers about good agricultural After several years of participating in Farmer Field Reach and adoption: –– Focus our efforts beyond practices, our Farmer Field Schools also offer Schools, farmers were accessing the training the number of farmers modules covering good business, environmental but we discovered they needed more direct one- who receive our training, and social practices – including book-keeping, to-one support to benefit from our teaching. towards measuring the 2,700 90,000 ways to minimize the environmental impact impact of our training Farmer Field Schools are farmers attended our of farms, children’s rights, and good nutrition. Building on our current approach, we have in terms of knowledge up and running Farmer Field Schools in introduced individual coaching for farmers, application and results 2015 – all completed training which they will receive twice a year, from a in good agricultural practices –– Roll out our coaching work more experienced farmer. Coaches will help with farmers to create farmers assess what they need to do to improve more individual Farm productivity and profitability, then together they Development Plans will create a Farm Development Plan, which the 75,000 30,000 –– Develop the Farmer farmer can implement. Progress will be evaluated farmers now trained in crop farmers are now trained to Field School model to by the coach after five months, at which point protection use fertilizer correctly include farmer coaching. the farmer may have reached sustainability Lead farmers will provide certification standard. If not, the coach will offer coaching to other farmers additional support. twice a year, following specific recommendations Starting in Côte d’Ivoire, we are going to train over aligned to each farmer’s 1,000 coaches, who between them will reach individual Farm around 70,000 individual farmers. The training 72% Development Plan farmers need varies from country to country of farmers in Cameroon are and our flexible approach reflects this. applying the book-keeping skills learned during Cargill’s business training

What we have learned: –– Training must be customized to suit the unique challenges and situation faced by farmers in different origin countries. Modular training, rather than one-off sessions, allows for continuous improvement –– After several years of participating in Farmer Field Schools, we discovered farmers needed more direct, one-to-one support to benefit from our teaching. This is why we developed the farmer coaching program Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C15 Improving farmer livelihoods Farmer training continued

Training in Cameroon Training Indonesian farmers in Over the past few years, we have started better nutrition customizing the training that we first developed Poor nutrition can have a direct impact on farmers’ in Côte d’Ivoire and Ghana, so we can offer it productivity, if they are sick and cannot work, to farmers in Cameroon – and the results have or if they have to care for others in their family. been dramatic. In just two years we increased the A study by an Australian University shows that in number of farmers attending Farmer Field Schools Papua New Guinea, cocoa farmers were recently in Cameroon, from just over 1,000 in 2012 to over losing up to 1.5 days in every seven days, due 10,000 in 2014/2015. to personal or family illness. In Indonesia, we are training farmers about ways to improve nutrition Farmer business schools in Ghana and giving them the skills they need to grow their Training in good business practices is delivering own vegetable gardens and produce healthier food positive results for farmers in Ghana. Out of 350 for the family table. You can read more about this farmers who have completed this training so far, on page C33. around 250 have started to document their farm expenses. Monitoring their income and expenditure Training for farmers in Brazil should help them budget more effectively. It also Around 160 farmers (40 in 2014) in Brazil have shows that our training is prompting farmers to benefited through training provided in partnership think about their farms as businesses. In Ghana, with the National Farm Learning Service. small groups of farmers are also sharing what The professional training offered to farmers they learn in advanced training with others in covers information about the technologies and their communities. technical support available to help them farm more productively. Field days have also been run for participating communities, covering environmental issues, health and nutrition. “ I have three hectares of land and I have three employees. I grow cocoa as well as bananas, pineapples and rice. I enjoy my work as a cocoa grower. When I attended the Farmer Field School I learned good practice and how to protect my fields. Among other things, I learned about sanitary harvesting, which means removing all diseased pods. Through the Yiri+ program, I also got access to efficient products that help growers with their work. These have a positive effect as they improve the plant and protect cocoa pods from disease. As a result, things are better, the yields are greater.” Ablassé Tiendré Béogo Farmer, San-Pédro region, Côte d’Ivoire Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C16 Improving farmer livelihoods Farm development Farmers will only thrive by optimizing cocoa production on their farms and improving their profitability. With support from us and our partners, thousands of farmers are accelerating their journey by making better use of crop protection, planting higher quality seedlings, and using fertilizers well.

Why farm development is important Farmers often lack access to crop protection We provide farmers with access to the resources Progress highlights At a time when they have the opportunity to products, fertilizer and other agricultural resources. needed to make their farms viable and more See following sections: “Making better use increase the supply of cocoa to improve their Even when farmers do have access, they often productive – including shade trees, plant of crop protection”, “Planting higher quality livelihoods, farmers in many cocoa-growing regions lack the skills required to use them effectively. material, crop protection, fertilizer and finance. seedlings”, and “Using fertilizer well”. are struggling to grow more. Productivity of cocoa Farmers need support through innovation, In addition, we stimulate the creation of a viable depends on the conditions on a farm, such as technology and sustainability to address all these market for agricultural inputs – with high-quality, Our plans for 2016: nutrients in the soil and shade provided to a challenges in order to improve productivity and proven inputs available to farmers along with –– We plan to strengthen our Cacao Allyie cocoa tree, as well as use of high-quality planting achieve a living income. appropriate financing possibilities. We believe fertilizer and Yiri+ crop protection programs, material, and appropriate use of fertilizer and crop that having access to these inputs, and actively and roll them out to a greater number of protection. When farms are not managed well, and appropriately applying them, will result in cooperatives in Côte d’Ivoire, and eventually cocoa productivity often falls. cocoa productivity increases and improved into our other origins such as Indonesia cocoa profitability. –– Expand our nursery project pilot into a high- A typical cocoa cycle scale nursery, selling young cocoa trees to farmers Stage 1 – Opening of new land –– Introduce our mobile finance project to – Influx of population facilitate mobile payments from farmers – Attractiveness of cocoa – Mass planting of cocoa trees

Stage 2 Stage 2 – Growing cocoa trees – Use of “forest rent” Farm – Lost cost of production development: – Constant good yields Innovation – Boom of production Technology Sustainability Stage 3 – Ageing trees (ageing farmers) Stage 1 Stage 3 – Development of pests and diseases and soil depletion – Volatile/declining yields – Higher costs/lower income

Stage 4 – Abandon farms – Shift to other crops – Migration out Stage 4

Based on research by François Ruf (1995) Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C17 Improving farmer livelihoods Farm development continued Making better use of crop protection

Progress Our plans for 2016: Reach and adoption: –– Transfer successful intervention design such US$613,000 as our Yiri+ crop protection program to other origins 75,000 the total value of Yiri+ beyond Côte d’Ivoire farmers now trained in crop crop protection materials and Cameroon protection provided to farmers through affordable flexible credit –– Continue to measure + schemes the results of the Yiri initiative, and the results for our farmers 78 58,000 farmer organizations farmers are now using pest helping their members and disease management acquire fertilizer and techniques and products training about how to use it, up from 38 in 2014 Results: 23% average yield improvement achieved by farmers Crop protection – the use of products and Yiri+ has been scaled up since our last report, through Yiri+, which has led agricultural techniques to protect against pests and from 38 to 78 cooperatives. This year, 70,000 to net income increase of disease – is particularly important for young cocoa farmers have been trained in crop protection 178 €/ha, ROI of 430% trees, which is why we run the Yiri+ program in in Côte d’Ivoire. partnership with Syngenta. What we have learned: Our measurements indicate a 23% yield –– Out of all inputs farmers can use, crop protection has the highest Launched as a pilot in Côte d’Ivoire in 2014, Yiri+ improvement on farms that implement the return on investment gives farmers access to better crop protection concepts of Yiri+. The total value of Yiri+ crop products and also provides hands-on training and protection materials provided to farmers –– When pests and diseases are highly visible on their cocoa pods, training kits that teach them to use crop protection through affordable flexible credit schemes was farmers show a greater desire to learn and apply crop protection products more effectively. Our partnership with US$613,166, up to the end of 2014/2015. Syngenta guarantees that farmers can buy the products they need at competitive prices on flexible terms. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C18 Improving farmer livelihoods Farm development continued Yiri+ – our journey to better crop protection

2012 2012–2013 2014 2015

Cargill and Syngenta launch Yiri+ Together with local partners Analysis of the Yiri+ pilot shows Full roll out of Yiri+ begins “It is amazing to see the results that (yiri means “tree” in a local Ivorian we roll out a Yiri+ pilot some great results the Yiri+ project has achieved since language) to support farmers in its start in 2012. Côte d’Ivoire in achieving higher 78 out of 101 revenues and better yields 750 40% farmer cooperatives in Côte d’Ivoire now involved, Improving yields and increasing through better crop protection people are trained to use average increase in yields on compared with 38 in 2013 crop protection sprays safely demonstration plots farmers income to support their and efficiently families is something that all 500 involved should be very proud US$380 farmers trained as crop sprayers of. We could not have achieved 100 average increase in income people are trained to train per hectare that alone.” other farmers 27,000 Jan Suter US$1,150 hectares of farm land treated Head of Africa and Middle East, Syngenta 400 potential increase in annual farmer training kits are distributed income for farmer working 23% three hectares average yield improvement achieved by farmers through Yiri+, which has led to net income increase 43 of US$194, ROI of 430%1 demonstration plots are cultivated

Participating farmers are benefiting from: Competitive prices and flexible credit so they can afford to invest Access to high-quality protective equipment, spraying machines, and storage facilities Practical in-the-field training A dedicated user-friendly manual explaining how to use crop protection products and equipment – approved by Le Conseil du Café Cacao and the Départment Protection des Végétaux et du Contrôle de la Qualité

1 Figure is from an initial study, based on a sample Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C19 Improving farmer livelihoods Farm development continued

“ I took over 7.5 hectares Whenever we have from my father, which sprayed the field we put is quite a lot of land, up a red flag to tell adults so I employ one worker. and children to stay clear Cocoa brings me for a week. The course has a better income than helped me increase yields. rubber or pineapple In 2014, I produced five and I sell all my cocoa tons, but I have already to a cooperative and grown this much in on to Cargill. the first four months of 2015. Other growers who see this want to

Cocoa farmer applying crop protection join the cooperative so they can achieve similar I attended the pesticides results too.” course, which was good. Justin Yao Koffi I learned to use them only Farmer participating in Yiri+ program when necessary. I also received financial support to access chemicals and was shown how to store them with the cooperative along with the spraying machine. Cocoa farmer applying plant protection Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C20 Improving farmer livelihoods Farm development continued Planting higher quality seedlings

Introducing scalable access to planting Projeto Cacau Mais Sustentável in Brazil Progress Our plans for 2016: materials in Côte d’Ivoire We are part of the Projeto Cacau Mais Sustentável Reach and adoption: –– Expand our nursery project We make high-quality planting material available (More Sustainable Cocoa Project) in Brazil. pilot into a high-scale to farmers. Thanks to our economies of scale and Our partners in the project are The Nature nursery, selling young participation of cooperatives we can offer high- Conservancy, the Brazilian Ministry of Agriculture cocoa trees to farmers. 39 12 quality planting material to farmers at affordable and CAPPRU (the Alternative Cooperative of Eventually, the nursery nurseries in Indonesia, nurseries are up and and attractive prices. Smallholders and Urban Farmers of São Félix project should become self- with a total capacity running in Côte d’Ivoire do Xingu). sufficient, and run by local of 117,000 seedlings In Côte d’Ivoire, we have worked with Centre cooperatives without the National de Recherche Agronomique de Côte The project aims to foster cocoa farming as need for Cargill’s input d’Ivoire (CNRA), Conseil Café Cacao, and a way to help smallholders in the Xingu region –– We plan to supply 533,000 ANADER, to establish a nursery program, through and encourage them to comply with Brazilian seedlings in 2015/2016 in which we grow better quality seedlings and sell environmental law. It also involves the restoration 143,000 Côte d’Ivoire them to farmers at cost price. We are now using of degraded areas. seedlings planted in –– In 2016, our planned mobile innovative technology to grow more resilient 2014/2015 in Côte d’Ivoire finance project will facilitate seedlings at 12 nurseries across the country. Since its launch in 2012, the project has and Ghana mobile payments from Together, these nurseries now supply almost added value in a number of ways, including the farmers, making it much 100,000 seedlings a year and plan to supply installation of an irrigation system at the Hybrid easier for farmers and 533,000 in 2015/2016. Seed Production Center in Tacumã, which has cooperatives to trade doubled its production capacity to one million The project model we are testing is suitable for cocoa seeds every year. To date, 160 smallholders What we have learned: efficiently and effectively nurseries producing at a large scale and our have joined the project, 99 of them this year. –– We need to pay constant attention to the availability of planting intention is that any nurseries we create will They are now farming 9,600 hectares of carefully material. Last year we ran pilot nursery schemes in a number of eventually become totally self-sufficient businesses prepared plantation land, compared with just countries. These have not yet produced seedlings in significant in their own right. We are also piloting a scheme 238 hectares last year. volumes but we believe they can be grown to commercial scale through which nurseries will sell young cocoa trees in future to farmers. Supporting farmers in Indonesia –– Replanting should be planned carefully since replacing old but still In Indonesia, we are encouraging farmers marginally productive trees reduces cocoa production and income Farm regeneration services to establish nurseries. At present, there until the new trees start producing cocoa Similarly, in Ghana we produced 43,000 cocoa are 39 nurseries, some of which have been –– In Cameroon, we want to build up the capacity of the seedlings. 20,000 were sold to farmers and developed as successful business ventures cooperatives, to ensure they are trained on the establishment 23,000 were planted on demonstration plots. by farmers. After growing the 3,000 seedlings and maintenance of the nurseries, before we begin our nursery As we are setting up rural Service Centers through that we sponsored them to produce, these program there our partnership with amongst others the Dutch farmers went on to secure contracts with the Ministry of Foreign Affairs and Solidaridad, we Indonesian government. stopped producing cocoa seedlings for free as our aim is to make the project self-sufficient. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C21 Improving farmer livelihoods Farm development continued Using fertilizer well

Progress Our plans for 2016: Reach and adoption: –– Roll out the Cacao Allyie fertilizer initiative to other cooperatives –– Aim to distribute 600 MT of fertilizer to farmers 450 30,000 101 in 2016 MT tons of fertilizer farmers are now trained farmer organizations –– Continue to increase training and awareness distributed to date to use fertilizer correctly helping their members around farmer savings schemes, to encourage acquire fertilizer and farmers to save money for fertilizer. This will training about how to use it alleviate cooperatives of the burden of pre-financing –– Continue to measure the impact of the Cacao Allyie initiative, and the outcomes 39 US$215,000 800 for our farmers cooperatives bought a invested by farmers and hectares now being farmed total of around 393 tons farmer organizations using fertilizer supplied of fertilizer, in average in fertilizers through Cacao Allyie orders of 8,300kg

Result: 56% increase in yields achieved by farmers using fertilizers correctly

What we have learned: –– Fertilizer only delivers a significant return on investment when farmers are fertilizer ready – with young productive trees, grown using good agricultural practices and crop protection Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C22 Improving farmer livelihoods Farm development continued

Fertilizer must only be used when soils have been prepared properly and it needs to be used well. Too much can disturb the nutritional balance of the soil and create a vicious circle in which farmers use more, to less effect. It can also endanger human health and exacerbate climate change, because its use produces greenhouse gases.

Our Cacao Allyie fertilizer initiative in We are also measuring and evaluating the Côte d’Ivoire impact of the Cacao Allyie program, by running To ensure farmers use fertilizer the right way, we two demonstration plots – one farmed using run the Cacao Allyie initiative, in partnership with good agricultural practices, crop protection and Dutch Sustainable Trade Initiative (IDH) and Louis fertilizer, the other without fertilizer as a control. Deyfus Commodities (LDC). Farmers learn how to These demonstration plots have also been used assess their farm’s suitability for fertilizer and how to train 421 farmers, including 28 women, on the to apply it correctly when the time is right. techniques required to use fertilizer effectively.

Cacao Allyie starts with farmer cooperatives, who The outcomes of Cacao Allyie are still being buy fertilizer on credit at affordable rates every assessed, but there are plans to distribute more month and then sell to farmers for immediate fertilizer next year and to involve more cooperatives. payment, or on 30-day credit terms. Alternatively, More work will be done to encourage farmers to to reduce the financial risk to cooperatives, save for fertilizer too, so that cooperatives can farmers can pay for their fertilizer through a savings reduce their own financial risks. scheme. This year, 39 cooperatives bought a total of around 400 MT of fertilizer, in average orders of At the end of 2014/2015, 30,000 farmers involved in 8.3 MT. Cacao Allyie were trained to use fertilizer correctly. Initial findings show an average 56% increase in The next stage in the Cacao Allyie journey to yields as a result. Together, farmers and farmer better yields and profitability involves training and organizations invested a total of US$215,000 in application. Farmers who buy fertilizer receive a fertilizers through Cacao Allyie by the end of the training “image box” – a simple cartoon sequence year, with a total of 450 tons distributed. that explains how to prepare their land for its use, choose the right weather conditions and apply it correctly. This advice ties in with their training at Farmer Field Schools. This year, 101 cooperative managers, 50 ANADER agents and 30,000 farmers have completed fertilizer-specific training through Cacao Allyie. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C23 Improving farmer livelihoods Farm development continued Affordable finance and protecting forests

Affordable finance and good advice Replanting shade trees to support Protecting and regenerating forests Replanting forests in Brazil Farmers will only use better agricultural resources biodiversity If farmers can improve the profitability and We are supporting the protection and preservation if they can access them easily and afford to buy Biodiversity supports healthy ecosystems, productivity of the land they already farm, they of biodiversity in Brazil by replanting areas of land them. We are helping them achieve this in a including those on agricultural land. Traditionally, should be able to increase yields and meet growing that have been cleared of forest over the past number of different ways. cocoa farms were rich in biodiversity because demand without having to encroach on forests. years. We have committed US$3 million for the cocoa trees were planted in shade amongst other Nature Conservancy, an NGO working in the north Our Cacao Allyie fertilizer initiative and our Yiri+ crops and trees, but this mixed approach is now In 2014, Cargill endorsed the UN Declaration of of Brazil to restore forests. With our support, they crop protection program with Syngenta both offer much less common because many farmers have Forests, and we have subsequently announced are not only returning land to its original forest farmers affordable finance, but they have not removed them to make more land available to grow that we intend to end deforestation across our vegetation, but also growing 1,000 hectares of yet been rolled out to all farmers. Until they are, cocoa trees. Shade trees can play a particularly agricultural supply chain by 2030. We wanted to cocoa using the forest canopy as shade protection. we are taking steps to support farmers in the short important role on farms because cocoa trees build our understanding of the issues and actively In parallel with this work, the Nature Conservancy term. In Ghana, we have worked in partnership perform optimally under shade cover, providing address deforestation within our agricultural supply has created two demonstration plots where with TechnoServe to provide affordable finance for a habitat for birds and mammals and improving chains, where appropriate. For this reason, Cargill farmers can be taught about the value they can 500 farmers in 2015, with 50% of the loans issued soil quality by taking up nutrients that shallow- is conducting a detailed risk assessment within gain from preserving, rather than depleting, forests. to women. We have also set up three rural service rooted cocoa trees cannot access, then returning our sourcing network to map farms using GPS They are taught how biodiversity and the use of centers in the country, where around 600 farmers them as falling leaves and branches. Our farm technology. We are conducting this assessment shade trees underpin soil quality. can buy quality farm products at cost price. We are development training stresses the importance of country by country, starting with Côte d’Ivoire in subsidizing the centers at present, but believe they replanting shade trees and explains how many of 2015. The risk assessment will inform the most Read more about what Cargill corporate is doing will become self-sufficient businesses in time. them farmers need to plant to make an impact and appropriate and meaningful actions to address about deforestation here: www.cargill.com/news/ satisfy sustainable certification requirements. deforestation in our cocoa supply chains. what-cargill-is-doing-about-deforestation/index.jsp Using a mobile banking platform, farmer cooperatives will be able transfer any premium payments to farmers much faster than in the past. This innovative project will not only improve the speed with which farmers are paid, but give them access to mobile banking technology and increase transparency of the entire premium payments process. We are partnering with the World Cocoa Foundation to roll the project out, using a model developed by another of our partners, the IFC.

In Indonesia, we have initiated a joint venture with a private sector organization to make sure crop protection products and fertilizers are available, at a fair price, at the farmer’s gate. We are starting a pilot scheme for this venture, involving 4,000 farmers. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C24 Improving 90,000 farmers trained to understand community the worst forms of child labor through our Farmer Field livelihoods Schools To help create thriving communities 145 that are armed with social services Community Action Plans and where community members are in place united to protect children from child labor and empower women. 4,000 Our approach benefiting from access We believe that by enabling communities to to finance prosper, the cocoa sector will benefit as a whole. Our supporting initiatives, many of which are African Rights Initiative developed and implemented in partnership with International awarded Cargill external organizations and farmer organizations, with a Global Community are developed to enhance our Farmer Livelihoods Impact Award for our work work. We focus on women’s empowerment, and with CARE and Rural children’s protection, education, and nutrition. Education Project in Ghana Prior to commencing any activity, we conduct an assessment of the community’s needs, and engage farmer organizations to ensure joint input achieves the greatest impact and ensures shared ownership of all interventions. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C25 Improving community livelihoods continued

Our commitments Towards 2020 Progress highlights Our plans for 2016: Reach and adoption: In progress Recently started Reach and adoption: –– Continue to develop and –– Strengthen cocoa-growing communities and roll out our community promote social development by ensuring initiatives to a greater access to basic services, such as education All children in Cargill Cocoa Promise US$1.6 million number of communities in and healthcare communities are protected from the worst invested by cooperatives 90,000 all our origin countries forms of child labor farmers trained or currently –– Ensure community-based awareness around in social improvement, –– Increase the scope including US$525,000 training to understand the issues such as child protection, gender, Increase the number of Cargill Cocoa Promise of our women’s in 2015 worst forms of child labor and nutrition communities that benefit from income earned – ahead of our 2016 empowerment work –– Complete 145 Community Needs Assessments by mothers and other women as farmers or target year –– Continue to strengthen as entrepreneurs –– Support women in establishing income- our relationships with generating activities Increase the number of Cargill Cocoa Promise cooperatives and farmer organizations, to achieve –– Empower communities to take ownership communities that benefit from well-run greater reach and of the solutions we help them achieve primary schools 49 145 schools have been built, Community Action Plans adoption through our Results: All Cargill Cocoa Promises communities will with 12 new this year. This in place to deliver the help various initiatives –– 97% of the children we reach stay in school for benefit from good nutritional practices means 36,000 children now local communities tell us –– Continue to roll out at least five years in Ghana * We will report publicly on our internal 2020 goals have access to better run they need our Community Action –– 4.7% increase in primary school enrollment and the outcomes of initiatives once our baseline is schools Plans across all our established and data is available over two-year period from baseline in Ghana origin countries –– Community impact award for our work with Results: CARE and Rural Education Project in Ghana 4,000 people benefiting from access to finance through VSLAs. Over half are women

What we have learned: –– There are many different direct and indirect causes of child labor in all its forms, and these intersect and influence each other in complicated ways –– Gender sensitization is crucial as women’s role is closely linked to local norms, social attitudes, and assumptions –– Addressing community needs that fall outside our area of influence, involves engaging other stakeholders such as governments Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C26 Improving community livelihoods continued

People living in cocoa-growing communities can build better lives for themselves with our support. Together with us and farmers’ organizations, they can build communities with improved social services, where all families are well nourished, women are empowered, children attend well-run schools and are protected.

Many people in cocoa-growing regions lack access to social services, including reliable education, healthcare, water and electricity.

Young adults who have completed a period of continuous education are more likely to stay in prospering communities and become the farmers of tomorrow. Empowering women to become income generators is pivotal in triggering better education and nutrition.

The importance of shared ownership If local people feel involved and in control of solutions to the challenges they face, then they are Creating Community Action Plans more likely to succeed over time. Shared ownership Our Community Action Plans (CAPs) have been Together with people in cocoa-growing also makes it easier for us to understand what each developed together with CARE International and communities and our partners, we are starting local community really needs. This understanding follow the methodology set out in the 2013 version to develop and implement distinctive Community is vital because every community is unique. of their Community Care Score Kit. Crucially, Action Plans (CAPs) for each cocoa-growing this approach provides a way to identify how community. These plans reflect the needs of each programs are being experienced by, and working community; and they are set up, implemented and for, the people who use them and the people who managed together with community development provide them. committees made up of local people.

At present, we have 145 CAPs in place to deliver the support that local communities tell us they need. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C27 Improving community livelihoods continued Protecting children

We are concerned about the safety and wellbeing We are working hard to eliminate unacceptable Progress Our plans for 2016: of children who may be involved in dangerous or forms of child labor. Our approach is two-fold. Reach and adoption: –– Continue to roll out forced work on cocoa farms and we are committed We provide awareness training to our teams, our initiatives through to working towards a transparent cocoa supply children in cocoa-growing communities, farmers a greater number of chain where children are not subjected to the worst and their families, and community members, such cooperatives and 90,000 3,500+ forms of child labor conditions. as teachers. And we address child labor by using communities in all our farmers trained or currently community members independent certification standards provided by origin countries training to understand the trained to understand the The challenge we face is complex, as the root- UTZ Certified, Fairtrade Foundation, and Rainforest worst forms of child labor worst forms of child labor –– Implement Cargill cause of child labor issues is often poverty. Alliance. For example, all our employees in Côte Cocoa Promise child The Cargill Cocoa Promise is key to addressing d’Ivoire are trained by the International Cocoa labor monitoring this issue. As part of our commitment, we Initiative (ICI) to help them understand and identify and remediation system Results: are working with the governments of cocoa children who may be at risk, and we are working to take a more targeted producing countries, industry partners, NGOs with our certified farmer cooperatives to improve approach to awareness and local farming communities to make a processes to help address child labor. raising, identification and difference in the lives of cocoa farmers, to protect 4.7% 97% remediation of cases of increase in primary school of the children we reach the rights of children and to support cocoa- In line with a commitment made in our last report child labor enrollment over two-year staying in school for at farming communities. – to train 70,000 farmers to understand the worst period from baseline in least five years in Ghana –– Continue to build our forms of child labor – we have now trained 90,000 Ghana understanding around We have dedicated teams in place to ensure farmers through our Farmer Field Schools. We are the underlying causes consistent implementation of our child labor a long-term member of the ICI and work with them and best solution to policies, coordinate our approach across all to implement proven ways of helping farmers mitigate child labor our activities and programs, and liaise with identify tasks that may harm children and reduce What we have learned: other stakeholders. the dangers for children on farms, such as using –– There are many different direct and indirect causes of child labor machetes, pesticides or carrying heavy loads. in all its forms, and that these intersect and influence each other If we are alerted to any child at risk, we work with in complicated ways. Consequently, we cannot tackle this issue the local community to inform the management of At the same time, we have trained children to through awareness raising alone the farmer cooperative and regional government make sure they understand the risks they face –– Child labor is directly linked to rural poverty. In poor farming officials so they can investigate and take any and what they can and cannot do to help on communities, children’s contribution on farms is often seen as a necessary actions. farms. Our feedback shows that 95% of the necessary, acceptable, way of life. We need to address people children trained now understand what is meant with very different cultural mindsets to our own, to get our views by child labor. across convincingly Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C28 Improving community livelihoods continued Protecting children continued

At present, around 10-20% of the certification Addressing child labor levels in West Africa payments received by farmer organizations Reducing the number of children participating in are reinvested into community projects. child labor in West Africa is a critical priority for the These include measures that help children, for World Cocoa Foundation (WCF), of which we are example, investments in schools. If we protect a member. We know that achieving reductions in children from the worst forms of child labor and child labor will take a sustained effort by several ensure there are well functioning schools, they parties including industry, the governments of are more likely to attend school; and if they attend Côte d’Ivoire and Ghana, and other stakeholders. school regularly, they are less likely to be taken advantage of as unpaid laborers. Improving the While it is clear that some progress has been provision of school meals can also increase school made, including through programs of the ICI, attendance, which is why, through our CARE governments, civil society, and the chocolate and program, we have set up 21 new school kitchens in cocoa industry, we all must further our efforts to the past two years. protect children in cocoa-growing communities. Achieving this will be possible only through Taking child protection to the next level continued joint efforts of all parties. Given the number of smallholder farms involved in cocoa farming, their remote locations, and We have worked with the ICI to develop a training the difficulties of categorizing child labor by its module covering children’s rights and child various definitions in the local context, securing protection at our Farmer Field Schools. We also reliable data on child labor across the sector use local Community Development Committees, remains a major challenge. Together with ICI, set up together with CARE, to highlight the we are developing a Child Labor Monitoring and importance of these issues. Remediation System, to help us identify where children are working on farms, and then to respond appropriately. We will also offer training so that families understand why we have a clear policy on the worst forms of child labor. We should have more to report on this topic in next year’s report.

Community level awareness raising Through our partnership with CARE, we’re ensuring that a wide variety of community members beyond farmers are empowered to address inappropriate forms of child labor. Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C29 Improving community livelihoods continued Empowering women

Women frequently play key roles in cocoa-growing The Coop Academy is an effective way for us to Progress Our plans for 2016: communities – contributing directly and indirectly train women who already work in leadership roles Reach and adoption: –– Expand number to their cohesiveness, for example, by managing to become even more effective. These women of VSLAs across homes, providing food for their families, taking provide positive role models for the importance and our programs children to school and paying school fees. Yet too effectiveness of women’s empowerment in cocoa- 19 115 –– Embed gender many women in these communities struggle growing communities. cooperatives have been sensitization training awareness training in to overcome gender inequality issues, and as trained about the sessions delivered to our our Farmer Field Schools a result they may be excluded from playing To better understand the challenges we face in importance of gender implementing partners, –– Improve the accessibility a role on their spouses’ farms or as income empowering women through farmer organizations, equality such as ANADER and CARE of training to women generators in their own right. We want to empower we have commissioned KIT, one of our knowledge women to play an even bigger role in improving partners through the World Cocoa Foundation, –– Continue gender community livelihoods. to complete an assessment of women’s current awareness training involvement and status in farmer cooperatives. to our own teams 40 77 Coop leaders studying through our Coop Cargill employees working new Village Saving and Academy, currently running in Côte d’Ivoire in the field have been Loan Associations have and Cameroon, complete diversity and gender trained in gender been set up sensitization training. You can read more about this initiative on page C07.

Results: 4,000 people have benefited from credit through VSLA. Over half are women

What we have learned: –– In communities where we have established VSLAs and conducted gender sensitization training, women report that they feel more able to contribute to decision-making in the community –– Women’s role is closely linked to local norms, social attitudes, and assumptions. The first step towards women’s empowerment is conducting sensitization training to raise awareness amongst a broad range of actors, and creating that environment that enables successful capacity building Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C30 Improving community livelihoods continued Empowering women continued

We know, thanks to research from a situational Empowering more women in Indonesia Supporting women through Village Savings analysis completed by CARE in Côte d’Ivoire, that “ Including women in farmer Through a multi-stakeholder program run by and Loans Associations in a number of ways our Farmer Field Schools are training is important. It is a the NGO Swisscontact, we are offering valuable To become income generators in their own right, not as accessible to women as they are to men, way to improve livelihoods for training to more women. In recent training modules women very often need affordable credit and if and we are currently exploring ways to change this cocoa-growing families and covering good nutritional practices, good financial times are hard, borrowing from a spouse or family – by locating them in villages and running them at practices, and good agricultural practices, women members is usually not an option. Our support more convenient times, for example. You can read to secure future production of made up 79%, 52% and 19% of those attending, for Village Savings and Loans Associations in more about this on page B12. quality cocoa.” respectively. Ghana and Côte d’Ivoire means women can Florence N’Dry, Chef de Zone access affordable finance. This unique approach is We also trained 100 ANADER agents on the ANADER Dabou “ Although our culture did not managed and governed by local communities and importance of improving the accessibility allow women to speak out, with interest rates are very competitive. of our programs to women. We believe that “It is essential that we take women’s the inception of the VSLA and if our implementing partners have a better aspirations into account in all rural VSLAs are generally run over 3-12 months, typically understanding of some of the key issues affecting sensitizations on gender equality, with 30-40 women involved. They are a good way women’s access to training, then they will be development activities.” women are now holding leadership to save money as well as to borrow it. Women- able to improve the delivery of our Cargill Cocoa Adama Kabore, Technicien Spécialisé positions and are able to contribute to only VSLAs hold weekly meetings at which each Promise interventions. ANADER Abengourou member makes a fixed deposit. At the end of the decision-making in the community.” project the net amount saved, after any debts, is Through our Prosperous Cocoa-Growing VSLA committee member paid back to the women at the agreed savings rate. Communities program in Côte d’Ivoire, which Ghana we run with CARE, we have identified 10 “ I had seen my wife borrow from communities where we will be implementing money lenders to expand her income-generation activities that will support women to develop their skills so they can cultivate business but it rather put pressure and market food crops on the local market. on the whole family and the This training is just underway and we will report business because the payment on progress in next year’s report. terms were not convenient and the At some of our Farmer Field Schools and in interest rate was high. I am happy Community Development Committee meetings, we to say that the CARE-Cargill will be rolling out a new training module in 2016, to VSLA is different; the interest raise awareness of gender issues among farmers rate is as low as 5 percent and the and other community members. payment terms very convenient and flexible. My wife’s business is booming and she has become my financial backbone.” Aline Sip Hoho Ghana Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C31 Improving community livelihoods continued Empowering women continued

Creating environments to enable women’s One woman’s journey access to skills and training Esther Adoma, aged 36, single mother of three children, lives in Tano North District, Ghana. To start addressing the practical barriers which prevent women from becoming more fully empowered, many of which we now understand better thanks to the research we have completed in cocoa-growing communities, we have launched a business and productivity training program exclusively for women. The program has been Esther extracts palm oil. She earns Esther pays her children’s school fees developed with WCF and is being implemented by very little. She cannot afford to pay her and renovates her home. She can ANADER. At present, 1,000 women in Côte d’Ivoire children’s school fees or her utility bills. afford to buy better food for her family. are participating. She struggles to feed her family. A key aim of the program is to encourage women to become involved in cocoa farming because they recognize it as a viable business activity. Through training they gain basic literacy skills if needed, along with an understanding of farm finance and business planning, as well as advice about how to set up saving clubs. The program Through the CARE-Cargill project, Esther takes out a small loan after also gives them an understanding of the good Esther joins a farmer group. She is joining a Village Savings and Loans agricultural practices required to set up a cocoa elected group organizer. She does Association. She opens a small shop farm or seedling nursery. this well, persuades more farmers to to generate more income. join and sparks the group into action. We believe this program will give more women the Empowered by the farmer training she skills and confidence required to thrive as cocoa completes, Esther uses a five-acre farmers or in other entrepreneurial activities. piece of land she has inherited to grow food and cocoa. Providing joint opportunities for mothers and children In last year’s report we introduced our Cocoa Community Development Fund (CCDF). “ My life changed with the earnings In partnership with the WCF, the project sought from the cocoa seedlings and cocoa to improve opportunities for 60 mothers in Côte d’Ivoire. After working for a year with these Esther undertakes cocoa nursery Esther is currently raising 15,000 production on my farm. I paid all the women’s groups, all women have received training management training. This inspires seedlings. She plans to sell 10,000 and school fees and renovated my house. in entrepreneurship skills and how to set up a her to grow and sell cocoa seedlings. use 5,000 to expand her farm. small business. Thanks to ongoing engagement, I am able to feed my family well and Using hybrid cocoa pods acquired we now have a better understanding of the types support other farmers in the group.” through the project she raises 10,000 of small enterprises these women are interested seedlings – with a little help from a Esther Adoma in developing, to supplement their income from community extension agent. She sells Cocoa farmer, Ghana cocoa farming. These include making soap, her seedlings for US$1,250. She also selling dresses and shoes and running small sells five bags of cocoa grown on bars and cafés. her land.

Information courtesy of CARE Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C32 Improving community livelihoods continued Widening access to education, healthcare and other social services

Back in 2008, we committed to invest Supporting schools that last in Côte d’Ivoire Progress Our plans for 2016: US$10 million in partnership with CARE, a leading Through our ongoing CARE work, we are trying Reach and adoption: –– Continue to roll out our humanitarian organization. Our objective is to to provide children with schools that last by initiatives through a greater lift 100,000 people in West Africa out of poverty working through Public-Private-Partnerships. It is number of cooperatives by improving their educational, nutritional and a more time-consuming approach, because more and communities in all our 36,000 159 economic opportunities. organizations are involved, but together with the origin countries children with access to new school management Ministry of Education and the Conseil Café-Cacao schools built in cocoa- committees and parent- –– Expand the access Our focus is to provide children with access in Côte d’Ivoire, we are achieving lasting success: growing communities teacher associations to water projects in to schools that stay open, because all too well-built, well-resourced primary schools that stay supported on education Cameroon to reach an often school buildings funded by well-meaning open year-on-year. policy, gender and child additional six communities businesses can fall out of use very rapidly without US$1.6 million labor issues ongoing investment in teachers and teaching Schools are backed and resourced by the invested by cooperatives equipment. Taking this into account, we are government, with additional financial backing in social improvement, progressing well. For example, in Ghana, on from farmer organizations, who allocate some including US$525,000 average 96% of children aged 6-11 with access to of the premium payments they receive through in 2015 schools through the CARE program are enrolled in certification schemes, to support them. We hope 3 school and 97% of these children stay in school for this approach can be rolled out to provide health clinics have been built at least five years. continuous education for more children in other in Côte d’Ivoire and five origin countries. We are happy to hear this boreholes in Cameroon Through our programs, 12 new schools have innovative design has now been introduced as a since last Cargill Cocoa now been built in cocoa-growing communities more formal Private-Public-Partnership approach 96% Promise report benefiting an additional 2,000 children. In total, with the Côte d’Ivoire government. Cargill is of children aged 6-11 with we have 49 schools, reaching 36,000 children. encouraged to see the uptake across our industry. access to schools through the CARE program are Improving access to potable water enrolled in school in Cameroon Access to water is essential to life and when What we have learned: clean, potable water is in short supply, people in –– There are many community needs that require engagement from cocoa-growing communities often face health and local authorities and governments. This adds a dimension to nutrition issues. In 2013, we launched a project to progressing efforts locally improve access to water by drilling boreholes in five communities in Cameroon, reaching 50,000 –– Delivering against all areas outlined in the CAPs in a timely manner inhabitants. The project has been a success and can be challenging we will be extending it to another six communities –– Addressing community needs that fall outside our area of influence, in 2016. involves engaging other stakeholders such as local governments Cargill Cocoa & Chocolate Improving livelihoods for farmers and their communities C33 Improving community livelihoods continued Cargill is committed to a world where every person To help us assess the outcome of our nutrition has access to safe and nutritious food. We are programs, we use a scoring system developed involved in projects that enable people in local by CARE. This questionnaire-based approach Improving nutrition communities to improve their nutritional wellbeing. produces a score for all participants, with a score Sometimes this can be done by educating them of seven or higher indicating good nutrition. about the need for a balanced diet and what this The system covers 12 food groups: cereals; roots comprises; other times it involves training that and tubers; vegetables; fruits; meat and poultry; shows them how to grow more food, at a lower eggs; fish and seafood; pulses, legumes and cost, for personal and family consumption. nuts; dairy; oils and fats; sugar and honey; other food stuffs. Improving household dietary diversity in partnership with Ghana Health Service Improving nutrition in Indonesia Cargill is working with CARE to promote more In Indonesia, many farmers and their families sustainable cocoa-farming communities, with survive largely on a diet of rice and grains. Progress Our plans for 2016: a focus on food security and nutrition. Together, we They would benefit from eating a more balanced Reach and adoption: –– Roll out our training on provide farm households with high-yielding seeds diet because malnutrition can have a negative Good Nutritional Practices for fruits and vegetables. We train extension agents impact on farm workers’ health, and consequently in Indonesia and Ghana to to provide education to communities on nutrition, farm productivity and profitability. 4,000 4,500 Côte d'Ivoire dietary diversity, food preservation and storage. men and women have households in Indonesia To address this issue, we are working with improved their participated in training “ Through this CARE-Cargill Swisscontact’s partnership program to support understanding of around Good Nutritional households in improving their nutritional standards. good nutrition thanks Practices, the large majority partnership, 85% of farmers have Up until the middle of 2015, around 4,500 cocoa to our training of them, women increased their production by farmer household members had participated in nearly 10%, contributing to an this training. average increase of 67% in income. One issue that has come to our attention is the 20 These farmers are now making impact that a lack of water, or poor management kitchen gardens have been more than 1.5 times more money of water resources, has on nutritional standards. 6,500 set up for school canteens than they did before.” Farmers often fail to maintain their vegetable households trained in Good to provide lunch to children gardens because they cannot not irrigate them Maria Hinson Nutritional Practices during the long dry season. Another problem Senior Program officer for Cargill nutrition thanks to our is that farmers cannot always acquire sufficient Food and Nutrition Security Unit, CARE USA training compost. We are trying to overcome this problem by showing farmers how to generate and manage As the scores from the Household Dietary their own supplies. 192 Diversity survey developed by CARE show community health clearly, the outcomes of initiatives have been Swisscontact believes that gender inclusion is 4 to 6 volunteers trained to use promising, but there is still more to be done at a crucial to the program’s success because women is the change in dietary nutrition counseling cards, broader scale. More than 4,000 women and men are key influencers in favor of nutritional change diversity score in two years, working with Ghana Health have participated in training programs or other within most families. As a result, malnourishment based on the scoring Service and Women in initiatives designed to address nutrition practices in children will be addressed, too. system developed by CARE Agriculture Development or malnutrition.

Our simply designed nutrition counseling cards What we have learned: have proven particularly effective at improving –– The choice of food consumed by households is predominantly people’s nutrition. They have been provided to decided by men and influenced by available food and 1,500 farmers in Ghana. household income –– Identifying sufficient community health volunteers and animators to train on use of child nutrition counseling cards can prove challenging