Do we always find a reason to have chocolate? Does the thought of chocolate cakes, brownies, and hot chocolate milk give a trigger to your senses? Angry, depressed, or stressed- the answer would be a chocolate bar!
If chocolate is a solution for your worries, it is high time you be worried about its origin, too, as the origin speaks volumes about its quality.
Thankfully, the present age is more conscious about their food choices. Consumers want to know the origins of their food, its ingredients, whether it meets the claims justified by the brand, and above all, its sustainability standards. The system has many stakeholders, each with its interests and agendas. The food sector is among the most intricate and linked on the planet. The supply chain is long and complex, making it hard to trace every ingredient back to its sources. Traceability answers such queries and helps us with the stages involved in its making.
Where do we stand now?
The price of cocoa beans has increased due to low production rates in recent years. This has caused many manufacturers to raise product prices to maintain profit margins. The cost of cocoa beans also fluctuates due to climate change, inflation, and other natural disasters.
Farmers are not getting a fair price for their cocoa beans because they cannot sell their product at a high enough price to cover production costs, including labour, fertilisers, pesticides, and energy.
The need for traceability
The traceability tool can help solve the issue of sustainability and false claims displayed in the product specifications, allowing the supply chain to be transparent. Traceability ensures that everyone involved in the production process, from farmers to retailers, are paid fairly for their work with improved labour conditions. The chocolate industry is an example of a supply chain that is not as transparent as it could be. It is a complex supply chain that includes cocoa beans, sugar, milk, and other ingredients whose digital journey can be tracked with traceability. The industry is not only complicated but also lacks clear ownership, trust, and core values. It is a $120 billion global enterprise.
Farmers and a fair price
Farmers are not being rewarded with a fair price for their cocoa beans because they cannot sell their product at a high enough price to cover production costs, including labour, fertilisers, pesticides, and energy. For example, farmers in Ghana earn an average of $1 per day for harvesting cocoa beans. This is insufficient to cover their living expenses or send their children to school. Transparency makes way for fair wages for farmers and their products; the chocolate supply chain needs to be transparent. Fair trade should be the ruling parade
Traceability Solution for The Chocolate Industry
The chocolate industry has been plagued with child labor, slavery, and unfair wages. Due to the growing demand for cocoa, the farmers are forced to resort to unsustainable practices resulting in the loss of biodiversity reserves. Knowledge transfer about good agricultural practices is limited among these farming sectors. These are all issues that can be solved by introducing blockchain-integrated traceability technology that traces the origin of chocolate from bean to bar.
Integrating Blockchain integrated traceability technology
- Blockchain technology furnishes product data in each block that cannot be tampered with, and the digital information may be retrieved for future reference. The farmers get better visibility which facilitates better access to international markets
- It furnishes data on the actors involved in the production, which can help us to curb child labour
- The mapping of actors in the product supply chain is integral to quality assurance and reinforcing brand loyalty
- It aids in certification procedures, and such digital information enhances customer loyalty
- It will be illuminating to understand that the value of Blockchain for businesses will exceed $3.1 trillion by 2030, according to a Gartner forecast.It enables us to identify threats regarding illegal sourcing and opportunities across the supply chain
Ever consider the impact of "bean-to-bar" traceability?
We have launched a chocolate brand called ‘Right Origins‘ before. With Right Origins, as a pilot project, we have shared 80% of profits with farmers who made a great effort in the supply chain. Besides enabling consumers to access reliable data as to the supply chain, our traceability allows businesses to onboard farmers and suppliers as a single or collective entity. The record of every transaction was detailed in the chain, preventing the hassle of record-keeping for auditor approval. Blockchain paved the way for making the whole process transparent and trustworthy. Although the industry is beset with several challenges, traceability can act as a solution for improved practices, complying with ESG standards, and paving the way toward return on investments.
Remembering all the chocoholics around the world
Regardless of age, we all probably have an intense chocolate craving. Who could resist that temptation? For some people, chocolate has been an obsession as it tastes terrific and finger-licking and makes us happy and content. Melting in our mouths, we become oblivious to all worries and distress for some moments. What’s more, chocolate offers a myriad of health benefits. Cocoa and chocolate were among the most consumed luxury foods worldwide. In the past, chocolate was a luxury item. It was only available for the elite few who could afford it. But now, thanks to modern technology and innovations in supply chain management, chocolate is more accessible than ever before.
The journey to elevate your brand value is way too simple.