Traceability and Chocolate

A while back I reported on a conference I attended of the Cacao and Chocolate Summit and since then, I've been on their email list. I can't always attend even their online meetings, but when I can and I do, I'll write a report here for any of you who are interested to check out. This time the topic was "the use of technology to ensure traceability in the fine cocoa value chain." The two speakers were Sergio Figueredo and Matt Whiteman both from Choco4Peace. Jody Hayden and Jenny Samaniego were the hosts.

The webinar itself focused on four questions that we were sent ahead of time: 1) Did the producers participate in the idea and in the development stages of their model and technology? 2)How has the producer received your technology? 3) What are the challenges and opportunities for producers and consumers as a result of your technology? and 4) Have you seen similar models that have been successful in other parts of the world or in other industries?

However, this report will focus on four questions I had before attending the webinar that I think you will also find more interesting. I hope you learn as I did.

Almost 200 people were pre registered for this webinar according to the chat I overheard after I was admitted. I could not see the list of attendees however. Choco4Peace is focused finding financing for small cacao farmers. They discovered that many of the financing problems of Colombia represent problems endemic to small cacao producers around the world. This include the high risk nature of creating cacao farms and thus lack of financial backing, the need to get government permissions to even farm (often in corrupt systems), high rates of violence in the regions, and low pay to support a demand for cheap chocolate.

What is traceability? 

This wasn't directly answered in the webinar. I guess they assumed that attendees would what it was. So I typed a question asking for a definition. 

Traceability in any field is verifying all of the steps from creation to final sales of any product/service.

The Choco4Peace defined it as "Being able to know how the cacao beans move from producer to the consumer along every step of the way. Also to know the impact each step has to the farmer, chocolate maker, seller, and buyers is. Putting this into the hands of everyone in a digital form that everyone can access." This combines the ideas of basic traceability with visibility.

Why is it important to chocolate? 

Tracking where cocoa beans come from, helps ensure quality and increases the likelihood that the buyer will be interested and willing to pay more. Using a digital platform to keep track can increase communication between farmer and buyer as well as cut back on the costs that many fine chocolate makers spend to constantly monitor the farming practices.

What other issues does it impact? 

The biggest impact is on the income of the cacao farmers and the people they employ. Most small cacao farmers live in poverty and most cacao plantation workers also live in poverty. If the farmer can get more income by proving the value of their beans to buyers, they are more likely to move out of poverty and share economic gains anyone they employ. Furthermore, the increase in income may go into producing better beans and increase the acres that can be grown. The income gained can be generational, too, breaking cycles of poverty. Choco4Peace has a goal of connecting 70,000 farmers, 50% of them women. That could result in social changes within Colombian society that could lead to improved lives for millions.

Why should you care as a chocolate consumer? 

The ability to know where and how your chocolate came from helps you verify quality but also economic and social issues you may care about. If you are wondering why one brand is charging more than another, knowing the traceability of the product from farm to what you are thinking of buying can help you determine if it is worth that price. Prices of chocolate is often more hype than quality or treatment of the people growing this valuable food source many of us love and cannot live without.

Really this webinar was more a way for Choco4Peace to talk about what they do than to explain these issues. However, the two men who spoke took a good deal of time, aided by a visual presentation, to explain what they are doing and why they are doing it. I found it an interesting discussion to attend even if I'm not an investor or chocolate maker/seller.