Ferrero discloses 20/21 cocoa supply chain
Ferrero is pleased to disclose the suppliers and farmer groups we have sourced cocoa from in the 20/21 crop season. This annual disclosure, which we started last year, is part of our commitment to be transparent on where our cocoa comes from.
Through our distinctive sourcing approach, we are able to achieve high visibility of our cocoa supply chain:
• we source about 75% of our cocoa as cocoa beans that we process in-house and use in our products.
• we buy these beans as physically traceable, also known as ‘segregated’, which means we can trace these beans from farm to our factories. This is for example the case for our brand Nutella.
• we establish long-term relationships with farmer groups through our direct suppliers, and we support them with our sustainability programme:
- in 20/21, we sourced about 90% of our total cocoa volume from farmer groups with whom we have a long-term relationship, 60% of these groups have been in our supply chain for three years or more, and 10% even seven years or more.
- we sourced the remaining 10% of our cocoa volume from farmers groups in our supplier’s network – in other words, from known sources as well. These farmer groups are not linked to Ferrero only, but to several customers.
• we use technology to map farms and sourcing areas so that we know their location, size and productivity, as well as to monitor deforestation risks.
Ferrero believes that this is essential to drive lasting change in the supply chain for farmers, communities, and the environment.
We continue our commitment to transparency and will share an update about our cocoa supply chain at the beginning of next year. You may read more about Ferrero’s cocoa sustainability program and how we work to improve the livelihoods of farmers and communities, protect children and safeguard the environment in our recently launched Cocoa Charter and Action Plan, or in the Ferrero Group Sustainability Report.