Hershey Invests $500M to Tackle Cocoa Farming Challenges

Hershey, the global confectionery company, has committed $500 million to address the complex challenges facing cocoa farming in West Africa. This strategic investment aims to support cocoa farmers in Côte d’Ivoire by standardizing cocoa cultivation practices, improving yields, and increasing farmer profits. The initiative is part of a broader effort to strengthen the company’s supply chain while addressing critical social and environmental issues associated with cocoa production.

A Holistic Approach to Sustainability and Well-Being

This investment is not an isolated event but builds on Hershey’s long-standing “Cocoa For Good” program. The program focuses on addressing systemic challenges, such as poverty, poor nutrition, child welfare, and environmental sustainability, in regions like Côte d’Ivoire, which is one of the world’s largest cocoa producers. A core goal is to create lasting improvements in cocoa-growing communities by implementing policies that promote healthy livelihoods, nutrition, and sustainable agricultural practices.

In line with its commitment to social responsibility, Hershey has emphasized the importance of working closely with cocoa cooperatives and local growers. The company’s partnership seeks to provide farmers with the necessary training and resources to improve productivity and income. It also aims to foster sustainable farming practices that prioritize environmental conservation, such as zero-deforestation policies. The initiative reflects the recognition that achieving long-term improvements in cocoa production requires cooperation across both the public and private sectors.

Addressing Cocoa Supply Chain Challenges

Hershey’s $500 million investment comes at a time when the cocoa industry is facing significant disruptions. Over the past year, issues such as erratic weather, labor challenges, and geopolitical factors have strained cocoa production. These challenges have not only reduced yields but also increased costs, leading to higher prices for both farmers and consumers.

Cocoa prices have surged dramatically since early 2024, doubling within a few months. Market projections suggest that these elevated prices will persist until at least September 2025, placing pressure on both producers and retailers. Companies like Hershey have responded by adjusting product prices to mitigate the financial impact. However, the ongoing volatility in cocoa supply highlights the importance of sustainable solutions that can stabilize production and secure the livelihoods of farmers.

The partnership with cocoa cooperatives is a key element of Hershey’s strategy to restore stability to its supply chain. By investing in farmer training and sustainable agriculture, the company aims to increase crop yields and enhance the quality of cocoa produced in Côte d’Ivoire. This approach not only ensures a more reliable cocoa supply but also helps to reduce the economic vulnerability of farmers, making them more resilient to market fluctuations.

Strengthening Farmer Livelihoods and Reducing Child Labor

One of the primary goals of Hershey’s initiative is to improve the economic well-being of cocoa farmers. Low incomes have been a persistent issue in the industry, contributing to widespread poverty in cocoa-growing regions. To address this, the company is working to enhance farmers’ earnings by promoting more efficient cultivation methods and providing access to better resources.

The initiative also aims to tackle the issue of child labor, which remains a critical concern in the cocoa industry. By improving household income, Hershey hopes to reduce the reliance on child labor and ensure that children in cocoa-growing communities have access to education and other opportunities. Additionally, the program seeks to increase family access to nutritious food, further supporting the well-being of both farmers and their children.

Promoting Environmental Sustainability

Environmental conservation is another essential component of Hershey’s investment strategy. The cocoa industry has long been associated with deforestation, as farmers clear land to increase production. Hershey’s zero-deforestation policy aims to prevent further environmental degradation by encouraging sustainable farming practices.

Through the initiative, farmers are being trained to adopt agricultural methods that protect soil health and promote biodiversity. By fostering environmentally friendly practices, Hershey hopes to create a more sustainable cocoa supply chain that benefits both farmers and the planet. The company’s efforts align with global sustainability goals, reflecting a commitment to reducing the ecological footprint of cocoa production.

Progress Toward Sourcing Transparency

As part of its broader sustainability goals, Hershey has committed to achieving full sourcing visibility for its cocoa supply chain by 2025. This transparency initiative focuses on both Côte d’Ivoire and Ghana, which together account for a significant portion of global cocoa production. By establishing greater visibility, Hershey aims to ensure that its cocoa is sourced ethically and sustainably, with a focus on traceability and accountability.

The company’s latest investment builds on previous progress, with more than half of the $500 million commitment already allocated by the end of 2023. Hershey’s efforts reflect a long-term vision for the future of the cocoa industry one that prioritizes the well-being of farmers, protects the environment, and ensures a stable and sustainable supply chain.

Celebrating Progress and Partnerships

The announcement of the $500 million investment coincided with the National Cocoa and Chocolate Days celebration in Abidjan, Côte d’Ivoire. This event provided an opportunity for Hershey to highlight its achievements and reaffirm its commitment to supporting cocoa farmers. It also underscored the importance of collaboration between the private sector and local communities in achieving sustainable development.

Hershey’s vice president and chief procurement officer emphasized that improving farmer incomes requires a comprehensive approach that involves both public and private stakeholders. The partnership with cocoa cooperatives represents a memorandum of understanding that focuses on enhancing farmer livelihoods, ensuring that the benefits of sustainable cocoa production are shared equitably.

A Path Toward Long-Term Sustainability

Hershey’s $500 million investment marks a significant step toward addressing the complex challenges facing cocoa farming. By focusing on key areas such as farmer income, child welfare, and environmental sustainability, the company aims to create a positive and lasting impact on cocoa-growing communities.

The initiative reflects a broader industry shift toward sustainable practices, as companies recognize the need to balance profitability with social and environmental responsibility. As cocoa prices remain high and supply chain challenges persist, Hershey’s efforts to promote sustainable agriculture and improve farmer livelihoods are likely to play a crucial role in shaping the future of the industry.

Through its investments in Côte d’Ivoire and other cocoa-growing regions, Hershey is working to build a more resilient and sustainable supply chain. The company’s commitment to transparency, collaboration, and innovation serves as a model for other industry players seeking to address the challenges facing cocoa production. With continued progress, Hershey’s “Cocoa For Good” program has the potential to transform the cocoa industry, benefiting farmers, consumers, and the environment alike.