Nestlé’s Accelerator programme expands to support cocoa communities

Nestlé has claimed notable progress in its income accelerator programme for the cocoa sector, according to a new report released by an independent KIT Institute, writes Neill Barston.

The scheme, which started out as a pilot venture in 2022, covering 10,000 farming families in Ivory Coast and Ghana, recently expanded to assist 30,000, and is now working towards 50,000 farmers.

According to the latest study, despite 2023/2024 cocoa season considered especially challenging due to key issues of adverse weather conditions, crop disease, and major hikes in prices to $12,000 a tonne that have combined to create deficits in supples, the company had made tangible progress in improving conditions for communities.

According to the findings, households participating in the venture have seen yields 18% higher than the control group of cocoa farmers not in the program. This has resulted in increased total net income, with participating households earning 15% more than their peers.

Crucially, the study asserted that there had been a 21% increase in net cocoa profit, a 31% increase in children’s wellbeing, with 88% of those within its latest scheme now enrolled in school – which is up from 81% in 2022. This is seen as being fundamental to economic development within the region.

However, as Confectionery Production has reported, while farm gate prices have risen in both Ivory Coast and Ghana in the past year, with many farmers throughout the sector still earning under $1 a day, the sector in the region remains in a challenging state, but with additional earning potential being delivered through this scheme, it is anticipated that farmers are continuing to close-in on gaining a living wage.

For its part, the KIT study has reportedly indicated that cocoa farms within the venture are in a healthier state due to adopting enhanced agricultural practices including  pruning, weeding, shade management and pest control, as well as their investment in labour. Composting was also introduced as a new element in the program.

“Our income accelerator program is one of our key sustainability initiatives,” said Laurent Freixe, CEO of Nestlé.

“And we are committed to expanding it further in Côte d’Ivoire and Ghana, our main cocoa origins. We welcome the interest of governments and other industry players in our approach. Together, we will be able to scale up our work for impact.”

According to the KIT Institute report, the income accelerator program is enhancing children’s well-being, which is being achieved through improving food security, and empowering women.

Significantly, the programme has taken a approach of distributing mobile money equally between both heads of household – has helped foster gender equity and financial resilience.

Moreover, the next phase of the program will simplify incentive structures to improve clarity and speed of implementation while maintaining the same level of financial support. Incentives will focus on two core areas: farm support (pruning) and household support (schooling) while continuing to deliver a broad set of activities.

“Since launching the Income Accelerator Program pilot in 2020, we have continuously refined our approach based on feedback from farming families and independent evaluations,” said Darrell High, Nestlé Cocoa Manager. “This report confirms that even in a challenging year, the program is making a real difference, which is very encouraging.”