Barry Callebaut, IFC, and IDH partner to provide credit for cocoa farmers

Chocolate and cocoa product manufacturer Barry Callebaut; International Finance Corporation (IFC); and the Sustainable Trade Initiative (IDH) have signed a $9m risk sharing partnership to cover smallholder cocoa farmers in Cote d’Ivoire by 2020.

According to the new partnership, Barry Callebaut will be providing in-kind credit to farmers via inputs and farm services, and this initiative will be supported by IFC and IDH.

Barry Callebaut CEO Antoine de Saint-Affrique said: “Sustainability is at the heart of our business model and values.

“The start of this initiative represents an important step in promoting professional, sustainable cocoa farming and in enabling cocoa growers to develop from being subsistence farmers into small entrepreneurs."

Barry Callebaut stated that this new initiative is in-line with its commitment to Cocoa Action, which is a voluntary industry-wide strategy on cocoa sustainability, convened by the World Cocoa Foundation (WCF) that aims to improve cocoa farmers’ productivity, profitability and livelihoods.

The company will provide two productivity packages to farmers and farmer cooperatives on a credit basis

The basic package includes training in areas such as pruning and crop protection, and the second package will provide fertilizers to professional and credit worthy farmers for trees under 20 years of age.

To receive these packages, farmers need to open a bank account where they are required to save part of the package value up-front.

This combined plan will empower farmers and transform them into entrepreneurs with a positive operational, financial and profitability track record.

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Image:Barry Callebaut, IFC and IDH join hands to provide credit for cocoa farmers. Photo: courtesy of Barry Callebaut.