Albertine de Lange UTZ Ghana. Cocoa Certification: challenges and solutions for encouraging sustainable cocoa production and trade

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1 Albertine de Lange UTZ Ghana Cocoa Certification: challenges and solutions for encouraging sustainable cocoa production and trade

2 UTZ is a program and label for sustainable farming worldwide

3 This presentation What is UTZ and how does certification work? What has been its impact What can certification not do? What is UTZ doing beyond certification? UTZ in Ghana Challenges and solutions (Ghana)

4 Brief history 1997: Guatemalan coffee farmer and Dutch coffee trader met 2001: UTZ Foundation set up in Netherlands UTZ means good in Mayan language Coffee program launched 2002 Cocoa program launched 2009 Tea program launched 2009, rooibos 2011, herbal tea 2015; hazelnuts 2015.

5 Our mission To create a world where sustainable farming is the norm. Sustainable farming helps farmers, workers and their families to fulfill their ambitions and contributes to safeguard the world s resources, now and in the future.

6 UTZ Vision A world where sustainable farming is the norm is a world where -farmers implement good agricultural practices and manage their farms profitably with respect for people and planet, -industry invests in and rewards sustainable production, -and consumers can enjoy and trust the products they buy.

7 UTZ and Cocoa UTZ is the largest program in the world for sustainable cocoa There are more than 465,000 cocoa farmers in the UTZ program UTZ certified cocoa is produced in 19 countries Chocolate products with the UTZ name or logo have been sold in 135 countries Since 2009, enough cocoa has been sold as UTZ certified to make 35 billion milk chocolate bars

8 Stable growth of certified volumes

9 Expanding sales of certified cocoa

10 How UTZ works Field Development Enable farmers to become entrepreneurs Standards & Certification Make the improvements visible Traceability Connect parties in a transparent chain Market Development Tell the story and create demand

11 The Loop International sector platforms (Vision 2020, Cocoa Action, etc.) Climate / Water Productivity Child labor Living wage Gender National platforms, governments and civil society Farmer group strengthening Opinion leaders and media

12 Traceability services UTZ provides customized traceability services to other organizations working in the field of sustainable agriculture. By supporting their work, UTZ can become a leading force in sustainable supply chains & together make a greater contribution to a more sustainable future. They include: Roundtable on Sustainable Palm Oil (RSPO) the leading initiative working to promote sustainable palm oil production.

13 Other standards ( cocoa Ghana)

14 Our work in the field It all starts with better farming. We collaborate with NGOs and other partners ( traders, farmer groups) who reach out to producers and deliver training. This enables almost a million farmers and workers to grow better crops, generate more income and create better opportunities for themselves and their families, while safeguarding the environment.

15 The UTZ standards Certification against our vigorous sustainability standards makes the improvements visible. Independent, third party audits ensure trust in the system.

16 Connected every step of the way UTZ certified coffee, cocoa and tea is traced all the way through the supply chain. This provides assurance that certified products are linked to certified sources for greater efficiency, transparency & accountability.

17 Developing the market for sustainability We work with industry to create demand for sustainable products, enabling companies to: Put sustainability at the core of their business. Tell their own sustainability stories.

18 What innovations/ technology does UTZ offer and use Good Inside Portal: traceability from farmer group to chocolate bar Data collection software by IMS ( smart licensing) First Mile UTZ academy online

19 Training and E-learning

20 Impact: better income

21 Impact: some examples Better crop

22 Impact: better environment

23 Impact: better life

24 How does certification encourage sustainable production and trade? Encourages training and implementation of better farming practices at scale Traceable cocoa, more transparancy in chain Chocolate industry invests in producers Incentive for farmer group formation

25 Certified farms are on average 49% more profitable than conventional farms, with a yearly profit of 341/ha vs. 229/ha. IDH and True Price, The True Price of Cocoa from Ivory Coast.

26 When you buy a product, you essentially endorse it and everything that went into producing it. We believe that certification through credible, independent standards bodies such as Fairtrade, UTZ Certified, and Rainforest Alliance, is a key step in eradicating child trafficking in the chocolate industry.

27 What can Certification alone NOT do? ensure better government services for all farmers ( training, inputs) eradicate child labor increase gender equality significantly reduce climate change

28 UTZ Sector Partnerships Program (SP) SP helps create change around underlying issues such as climate change and gender equality partnership with civil society, market partners and governments strengthen the voices of farmers in decision making forums, piloting new solutions and use collective influence to create lasting change

29 Adding to our agenda: Strengthening Civil Society for Lobby and Advocacy

30 UTZ in Ghana

31 UTZ in Ghana Code of Conduct development and piloting First groups certified in 2009 oday, 60 farmer groups in Ghana are UTZ certified 8 cocoa processors UTZ certified Since 2016: Also Sector Partnerships Program

32 Our work in Ghana Conduct trainings for UTZ Certified members and partners. Develop and update training materials. Monitor progress of UTZ certification projects through visits and stakeholder workshops. Establish strategic partnerships with farmer groups and NGOs for sector change towards sustainability Coordinate, network and collaborate with programs of the government

33 Cocoa regions

34 Ghana s cocoa supply Chain P1 P2 P3 Producer Group LBC CMC External buyers COCOBOD

35 Categories of certified farmer groups in Ghana Licensed buying companies (LBC) Farmer Based Organization (Farmer led) Trader & LBC (Combined)

36 Some specific learnings from UTZ in Ghana Yields and productivity are difficult to measure Sharecropppers cannot be ignored Government policies ( cocoabod) are important but difficult to influence

37 Interesting innovations in Ghana Labour services/ farm management services Land documentation ( Landmapp) e-payment Rural Service Centres and input shops

38 Challenges for Ghana ( policy level) Weak farmer based groups Focus in policy on yield (kg/ha) not on profit Farmer groups do not operate together to influence gov or private sector No national database of all farmers; no clear few on needs of different types of farmers Lack of coordination and collaboration between stakeholders ( platform)

39 Some concrete challenges in Ghana ( Field level): no collection system for empty pesticide containers use of unapproved chemicals cheating with scales approved chemicals also considered hazardous by UTZ some farmers farm at a loss

40 Challenges (certification Ghana) limited ownership of certification by farmers demand for certified cocoa from Ghana currently limited, premium low

41 What is UTZ working on already? Helping groups to digitize data collection and use it for more efficient certification Supporting civil society to advocate for and with farmers for better cocoa policies Developing models for more empowered farmer groups

42 Keep in mind Cocoa farmers are SMALL holders, with small plots, limited access to smartphones, transport Cocobod is key player, which cannot be ignored Access to smart phones still limited among farmers Quality of data collection is an issue

43 ANY QUESTIONS?

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