The world is running out of chocolate… And if procurement pros can’t find a way to save the day, no one can!
Most of us like to indulge in a little (or a lot of!) chocolate over Easter.
In Britain alone, the projected Easter spend for 2018 is $892.6 million.
And in the US, 2018 Easter spending is expected to total a whopping $18.2 billion.
But, depending on how attached you are to your Creme Eggs, Lindt Gold Bunnies or your Waitrose chocolate avocados , you might need to stockpiling now; in preparation for a very uncertain future!
Why climate change is claiming our chocolate?
More than 50 per cent of the world’s cocoa comes from West African countries, primarily Côte d’Ivoire and Ghana, whose climates have traditionally best-accommodated the cacao tree.
But, in recent years, drying conditions, long draughts and rising temperatures, are making it harder to grow cocoa beans.
In short, climate change could destroy the chocolate industry within 30- 50 years.
What can procurement professionals do?
All is not lost! Procurement teams around the world are already investing in alternative, and more sustainable options, for their cocoa sourcing.
- Developing a sturdier cacao plant
Last year, Mars unveiled their Sustainable in Generation Plan stating:
“We’ll invest $1 billion over the next few years to tackle urgent threats facing our business and the society we operate in – threats like climate change, poverty in our value chain and a scarcity of resources.”
Part of that investment will go towards “recruiting University of California researchers to develop a sturdier cacao plant that won’t wilt in drier climates.”
- Changing farming approach
The majority of farms in Côte d’Ivoire and Ghana are run by poorer families who cannot afford fertilisers and pesticides. If modern farming techniques were made available to the farmers in Western Africa; cocoa production might be easier.
The Rainforest Alliance is working with smallholder cocoa farmers to manage climate change and protect their livelihoods and way of life.
- Relocating suppliers
Farmers in Western Africa have the option to move their crops to higher ground; but there is limited space and many upland areas are protected for wildlife.
Organisations could look to source their cocoa beans from a different region entirely.
Dr Barry Kitchen, executive chairman of Daintree Estates, told the New Daily that “Cairns generally had ‘ideal’ conditions for cocoa trees, which need consistent rain, warm temperatures, and shade with dappled light.”
“You’ve got to be continually innovative and continually looking at ways that you’re preparing yourself for the future.” he said.
But, given the much higher labour costs in Australia, it’s unlikely that the industry could ever migrate to Australia.
- Changing the nature of chocolate
Research by The Conversation suggests wild mango butter, made from the fruit’s stone, has a very similar chemical, physical and thermal profile to cocoa butter.
If procurement teams decide to invest in the science behind it, it mightn’t be too long before we’re eating mango butter Easter eggs.
Personally, Procurious thinks it’s an egg-cellent idea!
In other procurement news this week…
Starbucks Testing Blockchain
- Starbucks is piloting the use of data technology, including blockchain, to make its coffee supply chains more transparent
- The firm hopes the technology will provide real time information about the beans within the supply chain and help financially empower rural farmers
- Kevin Johnson, chief executive officer at Starbucks, said: “Over the next two years, we will look to demonstrate how technology and innovative data platforms can give coffee farmers even more financial empowerment
Read more on Supply Management
Amazon’s Latest Drone Patent
- Amazon’s latest patent is a delivery drone that understands when you shout at it
- The drone is designed to recognise human gestures, and then respond accordingly. Gestures the drone would recognise include, for example, waving arms, pointing, the flashing of lights, and speech
- An illustration demonstrating the drone’s functionality shows a man wildly waving his arms and with a speech bubble next to his mouth
Read more on The Verge