Sustainable Sourcing in the Cocoa Supply Chain

Sustainable Sourcing in the Cocoa Supply Chain

October 13, 2018

Mars Wrigley Confectionery is planning to spend $1 billion over 10 years to ensure responsible sourcing of its cocoa supply by 2025.  Mars and eleven other cocoa buyers are working to increase  sustainable business practices for cocoa farmers in a responsible manner.

The plan is to use GPS mapping to insure cocoa supplies do not come from protected rain forests and to work directly with farmers to increase productivity and find ways to increase their income.

Fifty percent of Mars’ cocoa is currently certified by Rainforest Alliance and Fairtrade.  Mars wants to do more to improve the lives of farmers by paying more for responsibly sourced cocoa.  The company will also work with communities and governments to combat child labor practices.

A key issue is that cocoa production has been dwindling over the last decade in part due to farmers’ low income. Cocoa buyers fear that farmers will turn to more lucrative cash crops and further reduce the supply of cocoa.

This post was co-authored by David Little, Ph.D., and Anita Lee-Post, Ph.D.  It is based on the Supply Chain Dive article, Mars will invest $1B to fix ‘broken’ cocoa supply chain, by Continue reading

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Nestle Cracks Down on Deforestation

Nestle Cracks Down on Deforestation

October 7, 2018

To guarantee its global palm oil supply chain is deforestation-free by 2020, Nestle will use Starling’s satellite service.

Starling will provide year-round monitoring of land and forest coverage changes.  Non-compliant suppliers will be suspended from doing business with Nestle.  The progress of Nestle’s responsible sourcing practices will start with palm oil and extend to cover pulp and paper supply chains.


Video Spotlight: How Starling supports Nestle in monitoring their forest impact


This post is based on the FoodBev.com article, Nestlé to use Starling satellite service to monitor deforestation, by Martin White, September 14, 2018; and the YouTube video, How Starling supports Nestle in monitoring their forest impact, by Airbus Defense and Space, December 1, 2017. Image source: luoman/Getty Images.

Discussion Questions:

1. How does Nestle deliver a 100% deforestation-free promise in its global palm oil supply chain?

Guidance: Nestle will use Starling’s satellite monitoring service to ensure there is no change in land and forest coverage in areas where it sources its palm oil.  Nestle will suspend non-compliant suppliers and disclose all relevant information on their Transparency Dashboard website.

2. What is the significance of Nestle’s responsible sourcing practices from an operations Continue reading

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