Sustainable cocoa sourcing strategies and supply chain - Mondelez International Inc.

CÃ©lia R.

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Sustainable cocoa sourcing strategies and supply chain - Mondelez International Inc.

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Themes

Business diplomacy, sustainable value chain, global sourcing, cocoa value chain, supply chain, Indonesia, Mondelez, pressing issues, fair-trade, advice, CSR Corporate Social Responsibility, cocoa farms, description, smallholders, collectors, traders, Asia, processor, manufacturers, exporters, distribution, consumers, Cocoa Life Program, commitments, holistic, GEP Good Environmental Practices, Fair Trade

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Abstract

Mondelez International Inc., the largest chocolate manufacturer in the world and in Europe has committed to cover 100% of its cocoa supply chain with its Cocoa Life Program by 2025 while investing at the same time $400 million in it. This program for sustainable cocoa sourcing is implemented in different regions and aims to reduce child labor, deforestation and to improve the welfare of cocoa farmers. The purpose of this report is to gain insights into Mondelez regional supply chain in Indonesia, in its sustainable global value chain and to analyze its priorities in terms of actions are supposed to improve the cocoa supply chain.

Introduction
Mondelez' supply chain description
Analysis of the cocoa supply chain in Indonesia (Asia)
Most pressing issues Mondelez faces in the Asian region
Issues defined by using the Framework of the Food & Agriculture Benchmark
Commitments Mondelez has set to impact the performance of its supply chain partners
Business Diplomacy actions Mondelez has taken to realize its commitments
Pressing issue in Asia not addressed by Mondelez
Advice
Reference list

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Extract

[...] First, concerning the sustainable food production and sourcing, the soil health is relevant. The purpose in that case is to favor sustainable agriculture in order to improve soil health and biodiversity. Following actions can therefore be taken: adopt regenerative, circular and agroecological practices, favor sourcing transparency and use certifications etc, introduce economic incentives for famers. Then, when it comes to worldwide food safety, the purpose is to avoid contamination and ensure food quality by identifying hazards to ensure quality and avoid food contamination, using certifications and being transparent and improving traceability of value chain. [...]

[...] (2013). The Oxford Handbook of Offshoring and Global Employment. Google Boeken. https://books.google.nl/books?id=yTslehmHVmkC. Cosgrove, E. "Mondelez Pledges to Source All Cocoa through Its Sustainability Program by 2025." Supply Chain Dive May 2019, www.supplychaindive.com/news/Mondelez-sustainable-cocoa/553975/. "Do You Want to Become a Fairtrade Certified Organisation?" FLOCERT, www.flocert.net/solutions/fairtrade/. "Food and Agriculture Benchmark, a Framework for Corporate Action on Food System Transformation." World Benchmarking Alliance, July 2020. Gereffi, Gary, Kaplinski, & Raphael. (2010). [...]

[...] Through its "Cocoa Life" and "Coffee Made Happy" programs, Mondelez helps farmers to create communities, promotes biodiversity and sustainable environmental practices and cuts energy, water use and waste from manufacturing in order to reduce its' carbon footprint. It goes without saying that the Corporate Social Responsibility (CSR) is also a kind of commitment the company has set even if it is nowadays ubiquitous in the business world. It can be seen as a "policy" that includes a certain dynamic and concrete actions. [...]

[...] Some retailers also by the Mondelez goods from wholesalers and then sell it. Most pressing issues Mondelez faces in the Asian region Based on the different projects carried out by Mondelez International, the group has already targeted most of the faced issues. First, the Cocoa Life Program states that as most of the Indonesian cocoa beans are unfermented because the farmers do not ferment them after harvest and this causes quality problems. This means that an intermediate must ferment them, so the sourcing cannot be done from the provider directly. [...]

[...] : all the players within Mondelez' cocoa supply chain have the obligation to comply with the specifications and are checked regularly. To address this issue, I would advise Mondelez to make sure that it first meets the main Fairtrade label criteria and make changes in their supply change if necessary. After this contact FLOCERT (independent certifier for fair trade) to start the certification process (Flocert, "The Roadmap to Fairtrade certification"). The main standards are following (Fairtrade, "Fairtrade Standards"): Producers receive a minimum wage which must cover all the sustainable production's expenses Additional premium which will be invested in infrastructures, schools, healthcare etc . [...]

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