Ferrero highlights progress of CFI forests scheme amid ongoing deforestation challenges

Pic: Cocoa farming in Ghana. Pic: Shutterstock.

Posted: 7 June 2023

Related core topics: Cocoa & chocolate, Ingredients, New products, Regulatory, Sustainability

Related organisations: Ferrero

Related people: Marco Gonçalves

Ferrero has claimed major progress on its activities tackling deforestation within industry supply chains, as it releases its fourth annual report on the Cocoa and Forest Initiative (CFI) and action plan detailing its achievements in delivering enhanced levels of traceability, writes Neill Barston.

As the company acknowledged, there remains considerable collective challenges for the sector in delivering further positive gains, amid a backdrop of the covid-19 pandemic and global cost of living crisis that have impacted notably on core origin sourcing locations of Ghana and Ivory Coast.

Despite such conditions, which, as previously been detailed have been further impacted by conditions on the ground that include a continuing issue of illegal gold mining operations known as ‘galamsey’ and additional migration from West African nations placing further pressure on forest resources, the company asserted that conditions had been positively influenced.

In its latest report, Ferrero, which last month unveiled its latest confectionery ranges in the US (see our exclusive Sweets & Snacks Expo 2023 event video review here). reaffirmed its commitment to focusing on sustainable cocoa production and forest conservation, through promoting reforestation, and ensuring the long-term viability of farming communities serving the confectionery sector.

As part of its most recent CFI work, the company confirmed it has assessed 420,000 hectares of land for deforestation risk and distributed more than three million multi-purpose trees for on-farm planting and 775,000 native trees across the Ivory Coast for reforestation over the period of four years, which it believed would have both environmental and climate benefits.

"We know that cocoa provides a source of income and is a way of life for many communities. But we also know that deforestation and climate change threaten to undermine this," said Marco Gonçalves, Chief Procurement and Hazelnut Company Officer at Ferrero. "Championing the transition to sustainable livelihoods is essential to protect our forests, provide economic security, and sustain a healthy planet."

Notably, the CFI, which was unveiled pre-pandemic in 2017, produced what is widely regarded as the most prominent multi-stakeholder initiative to date in seeing a collaboration between 36 leading cocoa and chocolate companies including Cargill, Barry Callebaut, Hershey, Nestle, Olam, Mondelez, Mars, Cemoi, Blommer Chocolate, Ferrero, General Mills, Godiva, Guittard, accounting for 85% of global cocoa use. Crucially, the agreement was signed with the governments of Ivory Coast and Ghana, setting out on a path to deliver key progress on tackling deforestation.

CFI 2.0 next chapterAs for Ferrero, with its four-year plan drawing to a close, it has created "CFI 2.0" to build on its success, with the company stating that intensified collaboration with its industry partners remains at the core of its agenda to keep progress on track.

Significantly, as part of its additional action plan to 2025, the company added that it will continued its Kakum Landscape project in Ghana managed by the Ghanaian NGO Nature Conservation Research Centre (NCRC) in collaboration with the communities around Kakum national park, government bodies and other companies. It noted that similar schemes are being proposed within Ivory Coast.

Furthermore, the business highlighted another major priority in delivering success of its projects will be seen with a further roll-out and strengthening of the National Traceability and Satellite Monitoring systems. These have been led by the two national governments in Ghana and Ivory Coast, with strong engagement and support from the industry, which will ensure that progress made with schemes will be compliant with proposed EU deforestation regulations focused on delivering due diligence and transparency of supply chains.

Reflecting on its progress to date, Ferrero noted that under the CFI Action Plan 2018-2022, it achieved significant milestones across its three pillars: the first being forest protection and restoration commitments. Its core headline results included Polygon mapping153,000 farmers, assessed 421,000 hectares of land for deforestation risk, distributed 5.4 million non-cocoa trees for on and off-farm planting, engaging 77,000 farmers in agroforestry practices, involving 10,000 farmers in payment for ecosystem services, as well as training 68,000 farmers in Climate Smart Cocoa practices.

Within its second pillar, based on sustainable production and community livelihoods, it has supported 36,000 farmers through Farm Development Plans, engaged 26,000 people in additional income generating activities, distributed 5.2 million cocoa seedlings, established 1,505 active Village Savings & Loan Associations community groups, and enrolled 9,800 people in financial products and services.

Finally, its third pillar of community engagement and social inclusion focused on implementing forest restoration reaching a total of 161 communities, and has also seen 53,000 hectares of land managed through Community Based Natural Resource Management (CBNRM), engaged 4,700 youths through community service groups, and distributed 7,900 ‘clean cookstoves’ to families across several communities.

CFI resultsFor his part, Marco Goncalves, chief procurement and hazelnut company officer, Ferrero, in his opening address for the company's latest CFI report, noted that there had been considerable progress made on positively impacting deforestation in particular, while acknowledging there is still considerable work to be done.

He said: "As a founding member of the CFI, we are exceptionally proud of the work we have delivered to-date to end deforestation and forest degradation in the cocoa sector, and to champion social and environmental sustainability across our entire cocoa supply chain.

"Throughout 2021-22, we have made significant progress against our key goals for 2022. This includes assessing 420,000 hectares of land for deforestation risk – three times more than originally planned – and distributing 775,000 native trees across the Côte d’Ivoire over the past four years, surpassing our target by 40,000. This approach has the potential to deliver environmental and climate benefits as well as improving cocoa production and promoting forest restoration. But, as we reach the end of our initial four-year plan, we know there is much more to be done.

"We are determined to take forward our successes, and everything we have learned, into the next phase of this important programme, CFI 2.0. We know it is imperative to continue collaborating with key stakeholders to ensure that CFI 2.0 builds on the great progress we have collectively delivered to-date. Between us, we remain dedicated to prioritizing reforestation, protecting the environment through agroforestry, and supporting the work of cocoa farmers."