Responsible cocoa procurement

Certified cocoa according to the standards of the Rainforest Alliance, Fairtrade or corresponding, independently verified company programmes is grown and traded in accordance with social, ecological and economic criteria. Local farmers generate higher revenues with this cocoa, which not only improves their individual income situation but also allows producer associations to improve social and environmental structures.

Especially in countries where we do not have a presence, certification helps us meet sustainability criteria. Since the end of 2023, 100% of the cocoa we procure from West Africa is certified or verified in accordance with sustainability standards. Our goal is for 100% of the cocoa we purchase worldwide to be certified or independently verified according to these standards by 2030 at the latest. A worldwide proportion of 95% by 2025 is our interim target.

With regard to this target, the biggest challenge lies in converting South American supply chains to independently certified or verified sustainability standards because, in South America, a tradition to form cooperatives that are a prerequisite for certification often does not exist. We want to close this gap through our own local engagement and by entering into partnerships.

Traceability in the cocoa supply chain gives us transparency and insight into the origins of the raw material and its growing conditions. We are continuously working on improving the traceability of our cocoa beans. In the West African producer countries, we have already succeeded. The cocoa beans procured from there are 100% traceable. In order to accomplish this, we supported corresponding projects with cooperatives at the source in partnership with our suppliers.

Our worldwide goal: by the end of 2025, all of our cocoa beans and cocoa products will be 100% traceable to a geo-localised operation. This means that the individual lots of purchased cocoa can be traced back to their source.

Achieving these objectives will not be easy. Mapping the numerous smallholdings is a challenge that demands great effort and commitment in the cocoa growing regions because no higher-level coordination and no uniform database exist. The foundations in the regions of origin first have to be established by the stakeholders in the cocoa supply chain.

Storck does not tolerate any abusive child labour. We are able to reliably exclude child labour in our own cocoa production in the Dominican Republic. Only adult employees work on our cocoa farm in accordance with verified labour standards. In the many years we have been active in Ecuador with our own fermentation and drying centre, there have been no cases of child labour or corresponding indications in the local supply chain.

The risk of child labour continues to exist primarily in West Africa. Even though we do not have a presence in this region, we consider eliminating or at least minimising such violations to be our responsibility. To this end, we are working towards the establishment of child labour monitoring and remediation systems (CLMRS) or comparable systems in the cooperatives of our supply chain for all of our cocoa procurement from West Africa by 2030. These programmes not only serve to identify cases of child labour in cocoa farming, but encompass preventive measures to preclude child labour. Improving the life situation of families and therefore also their children is important as well. Concrete measures in this context include paying school fees and issuing birth certificates as well as education and awareness measures. The CLMRS programmes also respond directly to identified cases of child labour with concrete remediation measures and provide information for the implementation of additional preventive measures.

We establish these projects and measures in partnership with our direct suppliers and in coordination with the cooperatives. Our goal is to implement a CLMRS or comparable system within the framework of all our cocoa projects in West Africa by 2027. With millions of smallholder households, this is a very ambitious goal. Constant reassessment of the risk is necessary due to the turnover of cooperative members. The manifold causes of child labour also demand various preventive measures.

We are committed to ending exploitative deforestation and the destruction of other important ecosystems in our raw materials supply chains. Our goal: In 2025, 100% of the cocoa procured by us will be deforestation-free within the meaning of the EU Deforestation Regulation (EUDR).

For example, no forests were cut down for our own cocoa farm in the Dominican Republic. Cocoa is grown on land that was used for grazing cattle before we took it over.

For the supply chain in West Africa, we have made extensive preparations with our suppliers to prevent deforestation at the sources of our cocoa.

We support farming in agroforestry systems where shade trees, shrubs and arable crops grow alongside cocoa plants. This promotes biodiversity and soil fertility. Crop plants such as banana trees or manioc also provide farming families with an important additional source of income. This diversification makes farming families more resilient, especially if the cocoa harvest does not turn out as expected.

We intend to establish agroforestry systems in partnership with local cooperatives and farmers in 100% of our cocoa projects in Africa by the end of 2030. A corresponding survey is currently ongoing. We are determining the need for support with regard to agroforestry and the potential added value of diversification in farming for the farmers. With additional field crops, the farmers can cover the own needs of their families or generate additional income through market sales.

“Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity” (Art. 23 (3) of the Universal Declaration of Human Rights; United Nations). A living income is an essential prerequisite to effectively improve the living conditions of cocoa farmers and their communities. We therefore analyse the causes of income disparities and develop strategies that are effective over the long term. In doing so, we also consider gender-specific disparities in order to promote equal opportunities and to create flexible solutions adapted to regional conditions.

Our engagement is based on the knowledge that establishing a living income is only possible through a deeper understanding of the complex influencing factors and through the development of targeted, flexible measures. Income depends on numerous economic, social and ecological factors, and is influenced by the respective regional particularities. It is not only determined by the prices that are paid, but also by aspects such as productivity, household structure, local market conditions, the regional infrastructure and available resources. Short-term price adjustments or individual measures are not sufficient to overcome the structural challenges in the supply chain for the long term. We therefore emphasise a data-based approach that analyses causes, iteratively improves measures and adapts to local conditions.

Our supplier code commits our business partners to pay the statutory minimum wage to employees or – if this does not exist – to at least pay wages that are customary in the industry. In addition, the remuneration must be sufficient to cover the basic cost of living as well as a proportion of disposable income.

We are able to reliably meet these requirements in our own operations through direct payment. Exerting influence is more difficult with indirect, longer supply chains with intermediaries and farming operations, as in the case of West Africa. We guarantee higher prices for producers by purchasing cocoa that meets recognised standards, such as those of the Rainforest Alliance or Fairtrade.

Cooperatives receive a premium for Fairtrade-certified cocoa, which they can invest in community projects such as education, healthcare or infrastructure development. Thus we contribute to the long-term improvement of living conditions for the farmers and their communities.