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Page 1: Click Photo for Video Slideshow

http://youtu.be/wGYn-7AIVTQ

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26th WCF Partnership Meeting &

Cocoa Sustainability Trade Fair - Day 1

October 15-16, 2014

Copenhagen, Denmark

# WCFPM @WorldCocoa

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Thanking Our Sponsors

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Embassy of Côte d´Ivoire in Denmark

Visit the Cocoa Sustainability Trade Fair

Embassy of Côte d´Ivoire in Denmark

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WCF Partnership Meetings

Serving as the global platform for sustainable cocoa since 2000

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Welcoming New Members in 2014

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WCF Member Companies

Raul

Ocazionez

Foundation

Quality Candy PT. Hope Indonesia

Tulip Cocoa

As of September 2014

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Carsten Lyngsø Thomsen

CEO, Toms

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Carsten Lyngsø Thomsen, CEO

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Carsten Lyngsø Thomsen, CEO

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Barry Parkin WCF Chairman

Bill Guyton WCF President

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Cocoa Break

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“Defining Sustainability, Standards and

Certification”

Introduced by:

Panelists: Howard-Yana Shapiro, Mars, Incorporated

Jason Clay, World Wildlife Fund

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Do Standards and Certification= Sustainability?

Howard-Yana Shapiro, PhD

Chief Agricultural Officer, Mars, Incorporated The 1st Mars, Incorporated Fellow

Senior Fellow Plant Sciences, The University of California, Davis Distinguished Fellow, The World Agroforestry Centre

WCF Copenhagen

22 October 2014 17

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No matter how many opinions you line up, you can’t vote nonsense into truth!

Modified from Kevin Cameroon

CycleWorld 2014

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Why Cacao “Science” Must Translate to Sustainability?

Without new “science” the industry will stagnate, one has to only look at current low yields, little disease resistance, climatic unadaptability to see the future No single scientific advance will sustain the industry Soils are as important as sequencing Microbiomics are as important as marketing Phytoecology is as important as pathogenicity Needs to be demand- driven not supply-led (esp. by farmers) Possible ≠ Feasible ≠ Practical ≠ Profitable Not all of science developed will work Critics will coat it with caveats, conditions, qualifiers Remember the biggest consumers of cacao are pests, disease and insects It will cost money, real change always does

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Why Certification?

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$100,000,000

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37% of the rural children in Africa are stunted! Physically! Neurologically! Economically!

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Aflatoxin/Ochratoxin

Causes liver cancer and stunting Found in cassava, cacao, maize, peanuts, millet, rice, sorghum, sunflower seeds trees nuts and many spices.

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How do we measure the sustainable health of the cacao sector?

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Perspective on easy definitions…

28

Sustainability

Production of cacao in an economically, socially & environmentally responsible manner that ensures farmers’ livelihoods and security of supply for current and future generations

Standards

Criteria which must be met when producing cacao in order to ensure that ‘sustainability’ is realized

Certification

Third party verification that the cacao meets the criteria in the standard and is therefore considered ‘certified’

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Easy

Hard

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What is hard to define?

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Winner and losers

Problem based (utility, not pure curiosity)

Social, Cultural, Environmental, Ecological, Economic change

Testing hypothesis, constructs, paradigms

Systematic/experimental approaches

Observations (repeated)

Independent thinking, deductive reasoning

Documented and shared

Undergoes critical peer review routinely (credible)

Validated, revalidated, revisioned (robustness)

Unplanned serendipity

Really progressive, building on base of evidence and knowledge

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450 4750

10675

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Scale and Impact

Impact

Scale

Certify Poverty

Sector & Livelihoods Transformation

Certify Prosperity

Niche success

Wasted Opportunity

Certify Poverty

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Issues and Opportunities

Profitable farming

businesses

Investing in inputs & training

Adoption of modern

techniques

Action aligned to consistent

goals

Consumers concerns

Chasing cash premiums

Passing annual audits

Fragmented efforts

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“Why should I care about future generations – what

have they ever done for me?” Groucho Marx

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Lunch & Cocoa Sustainability Fair

Dansk Industri Foyer

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“Current Developments and Next Steps in Cocoa Sustainability”

Moderator: Bruce Wise, International Finance Corporation

Panelists: Gerard Manley, Olam

Han Loke Fong, International Cocoa Organization (ICCO) Joost Oorthuizen, IDH/The Sustainable Trade Initiative Massimiliano Wax, Rizek Cacao Sona Ebai, World Cocoa Foundation

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“Future ISO/CEN Standards: A Tool for Mainstreaming Sustainable Cocoa”

Presenters: Jack Steijn, CEN Committee on Sustainable and Traceable Cocoa

Nicko Debenham, Barry Callebaut

Panelists: Antonie Fountain, Voice Network

Edouard N’guessan, Le Conseil du Café-Cacao (Côte d’Ivoire)

Isabelle Adam, European Cocoa Association Joseph Larrose, Touton Pierre Etoa Abena, Office National du Cacao et de Café (Cameroon)

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©World Cocoa Foundation 2014 | All rights reserved

ISO/CEN Standards: A Tool for Mainstreaming Sustainable Cocoa

ISO International

Standards Organization

Governments Producer Countries

Industry Trade

Associations

CEN European

Committee for Standardization

Civil Society Liaisons from international organizations

National Mirror Committees

and delegates to international ISO

meetings

DEFINING SUSTAINABLE

COCOA

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©World Cocoa Foundation 2014 | All rights reserved

Planet (EN ISO 19381-2)

Profit (EN ISO 19381-2)

People (EN ISO 19381-2)

Management System (EN ISO 19381-1)

CEN/ISO Standards: A Tool for Defining and Mainstreaming

Sustainable Cocoa

Traceability (EN ISO 19381-3)

Conformity Assessment (EN ISO 19381-4)

(based on ISO 17065)

Defines: “3 levels of Performance Requirements”

entry (max years to be set)

medium (max years to be set)

high (end level)

Indicators

Defines: “Management in Farmer Organization”

Leadership, Resources, Documentation

Planning, Farm Development Plan

Monitoring, measurement, improvement

Defines: Traceability of Sustainable Cocoa

Defines: Requirements for 3rd party conformity assessment

bodies (certification)

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“The Path Forward for Certification”

Presenter & Moderator: Jerwin Tholen, KPMG Advisory N.V. Panelists: Andreas Kratz, Fairtrade International Daan de Vries, UTZ Elan Emanuel, Fair Trade USA Götz Schroth, Rainforest Alliance

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Presentation WCF meeting

15 October, 2014

Presentation by:

Jerwin Tholen, KPMG Advisory N.V.

The Path Forward for Certification

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Presentation The Path Forward for certification

October 15th, 2014

Standards

• Farmer level and chain of custody standards launched

• Scheme identity with target impacts

Global recognition

• Mars, Hershey, Ferrero, Natra and others have committed to 100% sustainable

cocoa by 2020 using Utz, Rainforest Alliance and Fairtrade

• Certified chocolate across the world (e.g. Utz on products in 108 countries)

Scaling up

• Niche to 20% of certified cocoa in a few years

• # auditors increased

• Funds acquired for implementation / farmer development

The voluntary sustainability standards (VSS) deserve credit for

their role as a driving force in mainstreaming sustainability

Sources: KPMG (2013) Raising the Bars, KPMG (2014) A Taste of the Future

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Presentation The Path Forward for certification

October 15th, 2014

Literature also cites more positive than negative effects of

certification …

Positiveeffect

No effect Negativeeffect

Positiveeffect

No effect Negativeeffect

Positiveeffect

No effect Negativeeffect

Coffee Cocoa Cotton

Effe

cts

men

tio

ned

in a

rtic

les/

#of

arti

cles

Access to education & training Working conditions Gender equalityFarmer economy Local natural environment Group level

Sources: KPMG (2013) Improving smallholder livelihoods: Effectiveness of certification in coffee, cocoa and cotton”

■ Most mentioned: Access to education and training, Farmer economy, Local natural environment.

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Presentation The Path Forward for certification

October 15th, 2014

Key mechanisms of certification should impact farmer

income……

Sources: KPMG (2011) Sustainable Cocoa Fund Study – Cost/benefit analysis of cocoa certification in West-Africa, KPMG (2012) Advantages and disadvantages of coca certification

ΔPrice (premium)

Price

Volume

ΔVolume

(GAP,

Planting

material,

Fertilizer)

Base yield

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Presentation The Path Forward for certification

October 15th, 2014

Standards

• Prove yield increase and community impact (basic education, child labor

prevention, women’s empowerment)

• Improve (transparency on) internal control systems, premium distribution

• Show advantages over proprietary sustainability programs / national standards

Global recognition

• Sell certified products in Brazil, China, Colombia, India, Russia, South Africa,

Turkey and Vietnam (70% of worlds confectionary growth)

Scaling up

• Decrease % unsold certified cocoa

• Find ways to include less profitable farmer segments

• Knowledge sharing ‘good practises’ (pre-competitive)

…..however, there are huge challenges ahead in order to

contribute to true sector sustainability

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Thank you !

Contact: [email protected] +31651367334

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Cocoa Break

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“Perspectives on the Meeting Theme: ‘Connecting Sustainability, Standards

and Certifications’ ”

Moderator: Bill Guyton, World Cocoa Foundation Panelists: Edouard N’guessan, Le Conseil du Café-Cacao Jason Clay, World Wildlife Fund Nicko Debenham, Barry Callebaut Stephen Opuni, Ghana Cocoa Board

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Day 1

Roundup

# WCFPM @WorldCocoa

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Reception & Dinner

Reception: 6:00 – 6:45, Foyer

Dinner: 7:00 – 9:00 pm, Top Floor Dining Room

# WCFPM @WorldCocoa