April 7, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Côte d’Ivoire is responsible for 45 percent of the world’s cocoa bean output – a crop that generates 40 percent of the country’s export revenue and accounts for 15 percent of its national GDP. 

However, smallholders in the country earn barely the price of a candy bar per day, and together with other challenges such as climate change, deforestation, lack of biodiversity, and child labor issues, there has been an increasing shift taking place in the form of new ESG-focused goals and intentions by large stakeholders in the country. 

Despite the multiple economic and ecological benefits that agroforestry can provide, today’s farmers face definite hurdles in implementation and design. However, now the opportunity to scale agroforestry is greater than ever, with $9 trillion earmarked for funding ESG initiatives between 2022-2025 and commitment from corporations to reduce emissions, agroforestry is the most effective climate solution in existence today for the food and ag industry. 

Barry Callebaut and Nestlé, two of the biggest names in food, announced their recently-signed long-term partnership for an 11,500-hectare agroforestry project, including payments for ecosystem services to more than 6,000 of Côte d’Ivoire’s farmers, that they say will serve to advance their efforts to scale agroforestry across the country’s cocoa-producing communities. 

Agroforestry is a pillar of both company’s climatesmart cocoa ambitions – Barry Callebaut’s Forever Chocolate strategy and  Nestlé’s Net Zero goal and its Nestlé Cocoa Plan. Together, the two companies are taking an agroforestry insetting approach that would result in the removal of carbon from both their and their customers’ supply chain while protecting biodiversity and supporting the livelihoods of growers. 

Already in motion, three cooperatives in the Southwest region of the country are already engaged in the project, which will scale up to 10 cooperatives and reach full-scale after five years of planting. Ultimately this will remove up to 1.3 million tons of CO2e over 25 years. 

“As part of Nestlé’s Net Zero roadmap, we are committed to reducing our business’ climate impact all the way to the farms we source from,” said Darrell High, cocoa manager, Nestlé. “A trusted partner like Barry Callebaut is essential to achieving success. Over 21,000 football fields are covered by our joint agroforestry project to support farmers who are part of the Nestlé Cocoa Plan.”

Through these efforts, the companies aim to mitigate the impacts of climate change and restore biodiversity while increasing cocoa growers’ long-term productivity and prosperity. Agroforestry is a key tool to making cocoa farms more resilient to drought and disease, improving soil quality, achieving higher yields, and providing additional sources of income. 

In consultation with local experts and considering the latest scientific findings, the most beneficial mix of primarily native fruit tree species has been identified to promote cocoa and soil regeneration, and the attraction of pollinators.

The project is also focusing on long-term success through training, extended monitoring, and payments to farmers for ecosystem services (PES), meaning growers will be paid on a yearly basis for the survival of the planted trees and carbon removal. Additionally, the interspersed fruit trees would provide the farmers with additional channels of income. 

“This pioneering partnership with Nestlé, a company strongly committed to climate action, shows that agroforestry can deliver significant positive impact where it matters most – in the shared value chain,” said Tilmann Silber, forest and carbon program lead, Barry Callebaut.

“The collaboration allows us to support the planting of trees on cocoa farms, while restoring the ecosystems, removing carbon from the atmosphere, diversifying farmers’ income and ultimately increasing farm climate resilience.”

In the first year, farmers will be made familiar with agroforestry, receive farm diagnostics and support with the planting design, be given seeding kits, and technical training. The following year, replacement seedlings will be distributed, if needed, and technical coaching will continue with a focus on pruning assistance. It is at this time that the first PES payment will occur according to the seedlings’ performance.

Over the course of the following years, these activities will continue, accompanied by land tenure interventions – ensuring land rights and a living income for farmers and sustainable cocoa production. These formal land rights will enable farmers to invest in their land and form market links for the fruits and other products they produce. 

Scaling of the agroforestry project will continue by partnering with customers to expand activities in Côte d’Ivoire and Ghana, and into other cocoa origin geographies, tackling both environmental and societal challenges while restoring ecosystems. 

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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