Swiss-Belgium brand has just established a fully scalable, sustainable and profitable cocoa farming model for the industry.
Barry Callebaut, a cocoa processor and chocolate manufacturer giant, believed that the future farming initiative (FFI) could be the catalyst for future investments in farming and the modernisation of sustainable cocoa farming.
The chocolate confectionery industry is worth over USD 128 billion and is expected to rise over two percent by 2027.
The move to develop a modernised farming model comes after record-high cocoa prices in early 2024. The rise in these prices has been affected by unstable market dynamics caused by drought, biodiversity issues and disease.
This initiative will positively impact cocoa farmers from growing regions and will provide the necessary support for more productive and sustainable farming methods.
Steven Ratzlaff has been hired as the FFI’s executive chairman and is expected to bring cocoa farming to industrial levels while making sustainable cocoa the expectation. He will aim to create a more productive and sustainable cocoa farming industry by transferring his learning and expertise from FFI to partners in its origin-sourcing countries.
As part of the FFI, Barry Callebaut signed its first deal with a high-tech farming business in Bahia, Brazil, where it will develop 5,000 hectares of land. Here, they will develop sustainable practices that will then be used to create a model for others to follow.
The company's original 640-hectare farm, which is located in Ecuador, will also be included in the FFI.
Barry Callebaut recorded that recent price increases in the chocolate confectionary category have led to 66 percent of consumers looking for better value for money, such as buying in bulk or switching to private-label brands.
Due to climate change and drought conditions, cocoa and chocolate manufacturers must evolve to remain relevant to consumers and promote sustainable cocoa practices.
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