How the industry’s biggest player is securing cocoa’s future

How Cargill is futureproofing cocoa – summary

• Cocoa faces threats from climate change, disease and deforestation
• Record cocoa prices are increasing costs across food and beverage supply chains
• Cargill supports farmers through training, imroved incomes and community programmes
• Investments in traceability, logistics and technology strengthen cocoa resilience
• Collaboration and innovation are crucial to securing cocoa’s future

Cocoa is one of the world’s most sought-after commodities. It’s also among the most vulnerable.

Cocoa crops are under threat from climate change, disease, deforestation and economic instability. At the same time, many cocoa farmers are struggling to earn a living income, prompting younger generations to leave the sector altogether.

And the consequences are already being felt by food and beverage manufacturers, as record-high cocoa prices and increased sourcing costs put pressure on margins.

Recognising the scale of the challenge, the industry is increasingly investing in initiatives aimed at strengthening cocoa supply chains, supporting farming communities and building resilience against the impacts of climate change. Among those leading the charge is the world’s biggest ingredients supplier – Cargill.

Futureproofing cocoa

“The long-term future of cocoa starts with resilient farmers,” says Emiel van Dijk, senior vice president and managing director of Cocoa & Chocolate at Cargill.

Cocoa farmers in key growing regions, including West Africa, Central and South America, and Southeast Asia, are facing mounting financial pressures, as they battle to address the impacts of climate change – rising production costs, crop disease and ageing cocoa trees. This makes it almost impossible for them to invest in their land and remain in the sector.

For Cargill, building a more resilient cocoa industry means helping farmers overcome these obstacles while creating the conditions for long-term success.

“We work with farming families to improve productivity through training and good agricultural practices, while supporting programmes that strengthen communities through better access to education, financial services and child protection,” says van Dijk.

Agroforestry also plays an important role in the company’s strategy. By integrating shade trees and other crops into cocoa farms, growers can improve biodiversity, enhance soil health and make cocoa production more resilient to extreme weather conditions.

Because, as van Dijk puts it, “if farmers have productive farms, stronger businesses and confidence to invest in the future, they’re better placed to adapt to challenges such as climate change and changing market conditions”.

Ensuring cocoa farming remains profitable is also critical to attracting the next generation. With many young people leaving rural communities in search of more stable incomes, improving the economics of cocoa farming will be essential if the sector is to maintain production levels in the decades ahead.

But futureproofing cocoa extends beyond the farm gate.

Working together to secure cocoa’s future

Alongside efforts at farm level, Cargill is expanding investment across its supply chain. This includes traceability and due diligence systems in producing countries, as well as processing, storage and logistics infrastructure, with the aim of enhancing visibility and resilience as cocoa supplies come under increasing pressure.

Innovation, says van Dijk, is also vital to securing cocoa’s future, though he warns that there’s no silver bullet. “We need innovation across the entire supply chain,” he says. This includes digital traceability tools and geolocation technology, as well as investments in automation, renewable energy and lower-emission transport.

The company’s also working with customers including Nestlé, Mondelēz International and Ferrero Group to promote greater transparency, while supporting efforts to increase demand for cocoa sourced through responsible production programmes.

And, while individual companies can certainly make a difference, van Dijk believes futureproofing cocoa will ultimately require cooperation across the entire value chain. “The future of cocoa depends on more than any one company,” he says. “It requires long-term collaboration across farmers, governments, customers and industry partners.”

Building a more resilient cocoa sector

Companies across the food and beverage industry are investing in the future of cocoa through farmer training, agroforestry, traceability and community development. Major manufacturers and suppliers are collaborating on responsible sourcing programmes, and new technologies are improving visibility across supply chains.

What’s more, the conversation has shifted from short-term sustainability projects to longer-term resilience, recognising that the future of cocoa depends on creating viable farming businesses that can withstand economic and environmental shocks.

Yet the scale of the challenge means the industry cannot afford to stand still.

Futureproofing cocoa will require even greater investment in farm renovation, particularly the replacement of ageing and disease-prone trees with more productive, climate-resilient varieties. Access to finance remains another critical barrier. Many farmers know what improvements are needed but lack the capital to make them. Expanding access to affordable credit, insurance products and income diversification opportunities could help farming communities become less vulnerable to fluctuating yields and volatile markets.

The sector must also continue working towards ensuring cocoa farmers earn a living income. Without a profitable future in cocoa, efforts to attract younger generations into farming are likely to fall short. Creating stronger economic incentives for producers may ultimately prove just as important as any agronomic intervention.

At the same time, deeper collaboration will be needed across governments, industry and development organisations. Climate change, deforestation and rural poverty cannot be solved by individual companies acting alone. Shared investment, aligned standards and collective action will be essential if the industry is to deliver meaningful change at scale.