Nestlé and Olam Food Ingredients (ofi) have joined forces in the “largest-ever” cocoa agroforestry partnership to lower carbon emissions and fight deforestation. The announcement comes as the cocoa industry grapples with enduring social, ethical, and economic challenges of increasing demand amid supply chain disruptions, inflation, and environmental fallout. 

As part of the partnership, approximately 25,000 farmers will be supported in transitioning to climate-smart farming in key cocoa-producing countries, including Nigeria, Côte d’Ivoire, and Brazil, over a five-year period.

The companies will implement agroforestry and crop residue management and monitor progress until 2055. ofi’s carbon footprinting experts estimate that this can help slash carbon emissions by 1.5 million metric tons of CO2 over the next three decades.

Darrell High, cocoa plan manager, Nestlé says: “People are at the heart of our climate actions. We’re working with ofi to help farmers transition to climate-smart farming practices. By supporting a move toward a more regenerative food system, we can continue to build a more responsible cocoa supply chain and progress toward our shared climate goals for 2030 and beyond.”

Transition to regenerative agriculture

Cocoa yields and supply are particularly battered by extreme weather events, and research predicts that the negative effects will be long-term.

Wageningen University & Research has estimated a 50% reduction in cocoa production in Côte d’Ivoire by 2060. It used a simulation model to suggest that Ghana is expected to see a moderate decline and Nigeria and Cameroon “may experience an increase in arable land for cocoa” by that year.

Amid these challenges, the agroforestry partnership plans to cultivate more than 72,000 hectares of agroforestry as part of a transition to regenerative agriculture. This includes planting over 2.8 million trees, which will be verified by a third party, from the nursery to the farm.

ofi tells Food Ingredients First that several native forest trees and fruit trees were chosen for each location by the company’s agronomists based on their ability to provide a shade canopy over the cocoa trees, maintain biodiversity in agroecosystems, and provide additional sources of income for farmers.

Farmer training and incentivization

According to the F&B ingredient supplier, farmers will also receive training on caring for trees and environmental and sustainability issues, including those related to the African Regional Sustainability Standard and EU Deforestation Regulation.

With this model, the project aims to encourage farmer ownership of the trees and biodiversity, helping strengthen climate resilience.

“We’re addressing climate challenges by putting farmers at the center of the solution. Collaborating closely with cocoa communities, we can support farmers in adapting and mitigating climate change and help strengthen the supply of sustainable cocoa ingredients,” says Andrew Brooks, global head of Cocoa Sustainability at ofi.

The companies have begun implementing the project in all three locations, with a bevy of training and educational methods to help farmers become more “forest-positive” by focusing on the gains of agroforestry and carbon capture.

This includes training farmers on climate-smart agricultural practices, such as sustainable farming techniques, good agricultural practices, crop residue management (mulching and composting), and improving soil health to cut down on on-farm emissions.

Farmers will be incentivized throughout the project, including the implementation phase and the ongoing maintenance of the trees planted. The trees will be monitored using satellites and ground truthing. In addition, SustainCERT will independently verify the carbon results, ofi tells us.

The collaboration aims to strengthen biodiversity and enhance soil health, making strides toward a more sustainable and resilient cocoa supply chain. Data will be analyzed using ofi’s proprietary tool, AtSource Digital Footprint Calculator, to understand the carbon reduction.

The partnership will run for 30 years, reflecting Nestlé’s and ofi’s long-term shared climate goals.

The baselines for these activities have been created using ofi’s AI-powered Carbon Stock Monitoring tool. The project will track the geolocation of the trees and ensure that they are growing in alignment with the objectives set out by the companies.