The "Fair" trade world is abuzz this week with an announcement by Hershey that it is expanding efforts in the area of cocoa sustainability in West Africa. Hershey is one of the last of the major international players to make such a commitment.
While skeptics are cautiously optimistic about the ultimate impact of the move, at least one, Global Exchange, points out that Hershey's choice to support Rainforest Alliance over a "real" "fair" trade certification does not bring with it "guaranteed" improvements in the quality of life for farmers:
"Fairtrade labelling standards are designed to tackle poverty and empower producers in the worlds poorest countries, giving them a guaranteed price for their products. Rather than emphasizing how products are traded, Rainforest Alliance certificationfocuses on how farms are managed."
Thus, while Hershey has announced that it will make it's Bliss product line with 100% Rainforest Alliance certified cocoa, it's unclear what this will actually mean for growers. Historically, we can suspect that it will be Hershey (and Rainforest Alliance) will benefit more than growers will.
The CocoaLink program, which is supported by the Bill and Melinda Gates Foundation, will earmark US$10 million dollars over the next five years for:
"... a first-of-its kind farmer outreach program that uses mobile voice and SMS text messages to connect cocoa farmers with important information about improving farming practices, farm safety, child labor, health, crop disease prevention, post-harvest production and crop marketing."
Additional efforts will be made to establish:
"... the Hershey Learn to Grow farm program in Ghana to provide local farmers with information on best practices in sustainable cocoa farming."
Before we go and congratulate Hershey too much, or thank Bill and Melinda G for their assistance, let's take a short moment to think about the very important topic of where the US$10 million will be spent (and ask how much of the ten million is actually Hershey money, anyway?). Not surprisingly (at least to those of us who follow such things), most of the money will not be spent on aspects of the program that directly benefit growers .
Where will the money be going then? To pay for CocoaLink's infrastructure, in part. Someone has to pay for the SMS gateway, the cost to deliver the messages (which might be paid for at least in part by growers depending on their plan), and the cost of producing the content that will go into those messages. Looking for a real-time feed of commodities exchange prices for cocoa that can be mashed up and sent by SMS to phones? It's not free. And where do the people developing the tools, content, and technology and who will be managing the program live? Mostly not in Ghana.
It's quite possible that 50% or more of the US$10 million will never the leave the US or will go to large telecom, technology service, and operations management oversight providers in West Africa and will not, in fact, benefit growers in the long run.
Furthermore, to have even a hope of succeeding, Hershey would need to make a generational (20 year, minimum) commitment to the program. 5 years is not enough, and what happens 5 years from now when the current commitment expires? Will Hershey re-up? Will it re-assess the impact of the program? If it does re-assess will it have the institutional courage to man-up and do the right thing and fix things and move forward? Or will it decide that the program failed (not their fault!) and drop it?
I would not say that I am cautiously optimistic about the success or future of this program. Call me cautiously pessimistic . I want it to work, but don't believe it has enough of the right elements to achieve meaningful results. For anyone other than Hershey.
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clay - http://www.thechocolatelife.com/clay/
updated by @clay: 04/15/15 21:22:34