Nestlé and ofi launch global agroforestry partnership
Nestlé, the world’s largest food and beverage company, and ofi (Olam Food Ingredients), a global leader in naturally good food and beverage ingredients and solutions, are launching their largest-ever joint cocoa agroforestry partnership to reduce carbon emissions and combat deforestation. As the cocoa industry faces the dual challenges of rising demand and increased environmental pressures, Nestlé and ofi are stepping up their efforts to create a more sustainable future for cocoa production.
Spanning Nigeria, Côte d'Ivoire, and Brazil, approximately 25,000 farmers will be supported in transitioning to climate-smart farming, over 5 years in each country, by implementing agroforestry and crop residue management. These activities will be monitored until 2055, with ofi’s carbon footprinting experts estimating they can cut carbon emissions by 1.5 million tons of CO2 over the next 30 years.
The project aims to cultivate more than 72,000 hectares of agroforestry, as part of a transition to regenerative agriculture. This includes planting an estimated 2.8 million trees, which will be 3(rd) party verified, from the nursery to the farm. The baselines for these activities have been established using ofi’s AI-powered Carbon Stock Monitoring tool and will be used continuously to track the geolocation of the trees and that they are growing to comply with the objectives set out by Nestlé and ofi.
The global partnership builds on 15 years of Nestlé and ofi collaborating on sustainable cocoa and is their largest joint agroforestry initiative to date. It is designed to support Nestlé’s Cocoa Plan and 2050 Net Zero targets while also contributing towards ofi’s Cocoa Compass sustainability ambition, which introduced new targets for regenerative agriculture. These feed into ofi’s overarching sustainability strategy, Choices for Change, with a vision of being the preferred partner for positive change.
Implementation has already started in all three locations, with a series of comprehensive training and educational exercises to help farmers become more forest-positive by focusing on the benefits of agroforestry and carbon capture. Key components include:
1. Training on climate-smart agricultural practices: Farmers will receive extensive training on sustainable farming techniques, including good agricultural practices (GAP), like planting shade trees amongst cocoa. They will also learn how to manage crop residues better, such as composting and mulching cocoa pod husks, to improve soil health and help reduce GHG emissions.
2. Empowering farmers to become environmental stewards: Training will be provided to farmers on wider environmental and sustainability issues, including those related to the African Regional Sustainability Standard (ARS) and EUDR regulations on sustainable cocoa. This is designed to give them a deeper understanding of the landscape and empower them to become stewards of their environment.
3. Financial incentives for farmers: Participating farmers will also be incentivized through financial rewards for planting and maintaining forest trees, encouraging active participation and commitment to the partnership goals.
4. Measuring the effectiveness of carbon capture: By promoting reforestation and carbon capture, the partnership aims to enhance biodiversity and improve soil health, contributing to a more sustainable and resilient cocoa supply chain. Data will be analyzed using ofi’s proprietary tool AtSource Digital Footprint Calculator (DFC), to understand the carbon reduction.
