How Hershey Is Working To Raise Cocoa Farmers' Income
Hershey has launched the Hershey Income Accelerator Program (HIAP) to address challenges faced by cocoa farmers. The $40 million initiative aims to improve farmer income by 20% through cash transfers. In its first year, HIAP reached 1,850 farmers, with over 1,400 receiving initial payments. The program is scaling up to support 20,000 households.
HIAP complements Hershey's $500 million Cocoa For Good strategy and was developed in collaboration with Côte d'Ivoire's Conseil du Café-Cacao and partners CARE International, Rainforest Alliance, and PUR. The initiative aims to create a resilient supply chain by building long-term relationships with cooperatives and empowering farmers to implement sustainable farming practices.
Hershey ha lanciato il Hershey Income Accelerator Program (HIAP) per affrontare le sfide degli agricoltori di cacao. L'iniziativa da 40 milioni di dollari mira a migliorare il reddito degli agricoltori del 20% attraverso trasferimenti di denaro. Nel suo primo anno, HIAP ha raggiunto 1.850 agricoltori, con oltre 1.400 che hanno ricevuto pagamenti iniziali. Il programma si sta espandendo per supportare 20.000 famiglie.
HIAP integra la strategia di Hershey da 500 milioni di dollari Cocoa For Good ed è stato sviluppato in collaborazione con il Conseil du Café-Cacao della Costa d'Avorio e i partner CARE International, Rainforest Alliance e PUR. L'iniziativa punta a creare una filiera sostenibile stabilendo relazioni a lungo termine con le cooperative e responsabilizzando gli agricoltori nell'implementazione di pratiche agricole sostenibili.
Hershey ha lanzado el Hershey Income Accelerator Program (HIAP) para abordar los desafíos que enfrentan los agricultores de cacao. La iniciativa de 40 millones de dólares tiene como objetivo mejorar los ingresos de los agricultores en un 20% mediante transferencias de efectivo. En su primer año, HIAP llegó a 1,850 agricultores, con más de 1,400 recibiendo pagos iniciales. El programa está aumentando su capacidad para apoyar a 20,000 hogares.
HIAP complementa la estrategia de Hershey Cocoa For Good de 500 millones de dólares y se desarrolló en colaboración con el Conseil du Café-Cacao de Côte d'Ivoire y los socios CARE International, Rainforest Alliance y PUR. La iniciativa busca crear una cadena de suministro resiliente mediante el establecimiento de relaciones a largo plazo con cooperativas y empoderando a los agricultores para implementar prácticas agrícolas sostenibles.
허쉬는 카카오 농부들이 겪는 문제를 해결하기 위해 Hershey Income Accelerator Program (HIAP)을 시작했습니다. 이 4천만 달러 규모의 이니셔티브는 현금 이전을 통해 농부의 소득을 20% 증가시키는 것을 목표로 합니다. 첫 해에 HIAP는 1,850명의 농부에 도달했으며, 1,400명 이상이 초기 지급금을 받았습니다. 이 프로그램은 20,000 가구를 지원하기 위해 규모를 확대하고 있습니다.
HIAP는 허쉬의 5억 달러 규모의 Cocoa For Good 전략을 보완하며, 코트디부아르의 Conseil du Café-Cacao 및 파트너인 CARE International, Rainforest Alliance 및 PUR와 협력하여 개발되었습니다. 이 이니셔티브는 장기적인 관계 구축과 농부들이 지속가능한 농업 관행을 도입하도록 권한을 부여하여 탄력적인 공급망을 만드는 것을 목표로 합니다.
Hershey a lancé le Hershey Income Accelerator Program (HIAP) pour relever les défis auxquels sont confrontés les producteurs de cacao. Cette initiative de 40 millions de dollars vise à augmenter les revenus des agriculteurs de 20% grâce à des transferts d'argent. Au cours de sa première année, HIAP a atteint 1.850 agriculteurs, dont plus de 1.400 ont reçu des paiements initiaux. Le programme est en cours d'expansion pour soutenir 20.000 ménages.
HIAP complète la stratégie Cocoa For Good de 500 millions de dollars de Hershey et a été développé en collaboration avec le Conseil du Café-Cacao de Côte d'Ivoire et des partenaires tels que CARE International, Rainforest Alliance et PUR. L'initiative vise à créer une chaîne d'approvisionnement résiliente en établissant des relations à long terme avec les coopératives et en habilitant les agriculteurs à mettre en œuvre des pratiques agricoles durables.
Hershey hat das Hershey Income Accelerator Program (HIAP) ins Leben gerufen, um die Herausforderungen der Kakaobauern anzugehen. Die 40 Millionen Dollar umfassende Initiative zielt darauf ab, das Einkommen der Bauern um 20% durch Barzahlungen zu verbessern. Im ersten Jahr erreichte HIAP 1.850 Bauern, von denen über 1.400 erste Zahlungen erhielten. Das Programm wird ausgeweitet, um 20.000 Haushalte zu unterstützen.
HIAP ergänzt Hersheys 500 Millionen Dollar umfassende Cocoa For Good-Strategie und wurde in Zusammenarbeit mit dem Conseil du Café-Cacao der Elfenbeinküste sowie den Partnern CARE International, Rainforest Alliance und PUR entwickelt. Ziel der Initiative ist es, eine resiliente Lieferkette aufzubauen, indem langfristige Beziehungen zu Genossenschaften gefördert und die Bauern dazu befähigt werden, nachhaltige landwirtschaftliche Praktiken umzusetzen.
- Launch of $40 million Hershey Income Accelerator Program (HIAP) to improve farmer income
- Aim to increase cocoa farming household income by 20% through cash transfers
- Reached 1,850 farmers in the first year, with over 1,400 receiving initial payments
- Scaling up to support 20,000 households
- Complements existing $500 million Cocoa For Good strategy
- None.
Insights
Hershey's Income Accelerator Program (HIAP) represents a significant step towards addressing income inequality in cocoa farming communities. The
The program's goal to improve cocoa farming household incomes by
While the initiative shows promise, there are several factors to consider:
- Long-term sustainability: Will these cash transfers create lasting change or temporary relief?
- Measurement and transparency: How will Hershey track and report on the
20% income improvement goal? - Systemic change: Does this program address root causes of poverty in cocoa farming or merely alleviate symptoms?
Overall, HIAP represents a positive step, but its true impact will only be evident as it scales and matures over the coming years.
Hershey's HIAP initiative addresses a critical issue in the cocoa supply chain: farmer income. By providing direct cash transfers, Hershey is attempting to bridge the gap between market prices and living wages. This approach has several potential economic implications:
- Market distortion: While beneficial for recipients, these payments could potentially distort local markets and create dependency.
- Productivity incentives: The program's link to sustainable farming practices could drive increased productivity and quality, benefiting both farmers and Hershey.
- Supply chain stability: Improving farmer incomes may lead to a more stable and reliable cocoa supply, reducing volatility for Hershey.
The program's scale is noteworthy. Reaching 20,000 households could have a significant impact on local economies. However, it's important to consider the broader context: there are an estimated 2 million cocoa farmers in West Africa alone. HIAP's current reach, while commendable, represents a small fraction of the total cocoa farming population.
The timing of payments - aligned with school years and farming cycles - shows a nuanced understanding of farmer needs. This strategic timing could maximize the program's impact on education and sustainable farming practices.
While promising, the program's long-term success will depend on its ability to create sustainable income improvements beyond the direct cash transfers. Monitoring the program's impact on farm productivity, local economic development and farmer retention in the cocoa industry will be important in assessing its overall effectiveness and economic value.
Since our founding 130 years ago, Hershey has supplied chocolate lovers with moments of goodness from our iconic treats.
NORTHAMPTON, MA / ACCESSWIRE / July 29, 2024 / The Hershey Company
Hershey
By Angela Tejada Chavez
Key Takeaways:
At Hershey, we want our cocoa to come from communities where farmers and their children have a bright future.
A host of challenges continue to face cocoa farming communities, and it is putting current and future generations of cocoa farmers at risk - that's why we're working to improve farmer income and resilience.
To support cocoa-farming households, we launched the Hershey Income Accelerator Program (HIAP) and have made the first round of payments to participating farmers.
Since our founding 130 years ago, Hershey has supplied chocolate lovers with moments of goodness from our iconic treats. Even as our portfolio has expanded to include a variety of sweet and salty snacks, cocoa remains a key ingredient of many of the Hershey products people know and love.
But when it comes to the farmers who grow the majority of the world's cocoa, the challenges they face make earning their living bittersweet. Too many cocoa farmers live in poverty. This means they struggle not only with earning a living income, but with associated challenges like poor health, lack of standard on-farm practices, and environmental risks like pests and disease are also common.
At Hershey, we want our cocoa to come from communities where farmers and their children have a bright future. That is why we're working to help cocoa-farming communities and improve the quality of life for farmers and their families. Since we launched the Hershey Income Accelerator Program (HIAP) last year, we have laid the groundwork for a new approach to working with the farmers that grow our most important ingredient.
HIAP, an investment of
In the first year of implementation, Hershey reached 1,850 farmers and this spring, more than 1,400 received the first cash transfers directly to their mobile money accounts. We are scaling up the program and aim to support at least 20,000 households.
Siméon Oulaï, cocoa producer in Duékoué, shared with us, "The first payment received in March was a very pleasant surprise, and I quickly reinvested the money in my plantation. But this program goes beyond the financial aspect - the training gives us the ability to boost our production while preserving our environment."
Closing the farmer income gap has far-ranging benefits which can resonate throughout cocoa communities and benefit the global supply chain. It enables the farmer to better balance the costs of operating a cocoa farm. When families have sufficient income, they're more likely to send their children to school to get a quality education. Financial resources help farmers to adopt environmentally responsible agricultural practices such as recultivating existing farms rather than moving on to new ones. Farmers may be more likely to invest in shade-grown cocoa crops, which support biodiversity and improve yields.
Thierry Kouassi, group administrator at the HIAP cooperative in Duékoué, says that HIAP will have a ripple effect for farmers. "The enthusiasm is palpable. Even producers who were initially reluctant are now knocking on our door. The extension of the project to more producers from 2025 is excellent news for our entire community."
A resilient supply chain is critical to our business and those that work within it. That's why we are making long-term investments in building relationships with committed cooperatives. Cooperatives play a key role in providing services to farmers, and long-term relationships are fundamental to improving resilience.
We're just getting started. Our first HIAP payments will be followed by two additional cash transfers this year. Payments to farming families at the beginning of the school year is intended to empower them to seek education for their children and another toward the end of the year aims to help farmers implement sustainable farming practices - the center of the program - that will lead to a more productive, resilient crop and lasting improvements.
At Hershey, we are steadfast in our commitment to making sure cocoa farmers and their families can prosper, both now and in the future. As we scale these initiatives in the years ahead, we will continue to report transparently on our progress and share what we've learned.
View additional multimedia and more ESG storytelling from The Hershey Company on 3blmedia.com.
Contact Info:
Spokesperson: The Hershey Company
Website: https://www.3blmedia.com/profiles/hershey-company
Email: info@3blmedia.com
SOURCE: The Hershey Company
View the original press release on accesswire.com
FAQ
What is the Hershey Income Accelerator Program (HIAP) and how much is Hershey investing in it?
How many farmers has Hershey's HIAP program reached so far, and what is the target for HSY?
What are the main challenges faced by cocoa farmers that Hershey (HSY) is trying to address?
How does Hershey's HIAP program work in conjunction with its Cocoa For Good strategy?
