Future-Proofing Supply Chains Against Climate Change

To help buffer against rising cocoa prices due to uncertain weather in West Africa, ingredients company ofi is helping to bring cocoa farming to Indonesia to aid in solidifying Hershey’s supply chain with USAID’s Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee Agroforestry (LASCARCOCO) project. By working in partnership, the group is assisting smallholder farmers in the region with successfully growing this threatened crop.

“We have a Center of Expertise that is a great enabler for us, helping us to convey information not only to our sustainability teams, but to our customer partners, government extension institutes, and other partners [about] what you can do to improve yields and deal with pests using model plots,” says Kamesh Ellajosyula, president and chief innovation and quality officer at ofi. “Farmers can learn firsthand how to do integrated pest management, how to manage run-offs, and learn from others about how to take a landscape approach to grow climate-resilient cocoa and coffee.”

The program is supporting 6,500 farms in different parts of Indonesia, with the goal of not only increasing cacao farm yields by 25% but also conserving at least 14,000 hectares of watershed land by the end of 2025. While people in the food manufacturing sector will likely recognize the names Hershey, USAID, and ofi, Ellajosyula says that the program engages many local partners, too.

“This is a program that puts boots on the ground to make changes,” explains Ellajosyula. “We are not sitting somewhere else talking about how we are going to save the world. We are literally right by the farm where food is being produced—providing knowledge and expertise to help Hershey meet their sustainability goals while also protecting their supply chain.”

The program has helped local farmers learn how to appropriately prune the tree canopy, as well as plant banana trees between the cacao trees to help protect cacao seeds from pests and the spread of disease.

“This protects your crop. But it also helps farmers diversify their farming. Now you are not just selling cocoa, you can also sell bananas and banana leaves,” he says. “You can use the banana leaves to wrap and ferment the cacao with less risk of the mold that often grows on tarps and makes the beans unfit for use. This is just one example of how plant science can come together to make a difference for a small farm.”

Jemma Ralphs, a communications specialist at ofi, says it’s important, when looking to future-proof your supply chain, to take a “holistic” approach. It has to go beyond just thinking about your supply chain. It must also consider the needs of your suppliers, going right back to the farmer who produces your ingredients.

“It can’t just be about the farming itself. You have to make sure that farmers can make a decent income from growing your crop,” she says. “You have to take an interconnected approach because the welfare and the livelihoods of the farmer directly impact the quantity and the quality of cocoa generated.”