Social Intrapreneur

The Innovation

Cocoa, a plant native to Central and South America, is a globally demanded commodity grown wherever the land can support it. Grown in equatorial countries, cocoa evolved from being a treat for the rich to flavoring a variety of products across demographics and incomes. The two largest producers in the world, the Cote d’Ivoire and Ghana, account for over 50% (Bright & Sarin, 2003) of the world’s production, but the people and the land it is grown on are overstrained. Political instability is the norm and short-term economic goals are creating irreversible damage to the countries as a whole.

Cocoa often competes with coffee and timber cultivation in the rich equatorial belt that extends across Sub Saharan Africa, the Pacific Islands, and The Lower Americas. In Africa in particular, minerals beneath the soil drive decisions above the soil resulting in more boom-bust cycles. In order to obtain cheap labor, many farmers own child slaves to perform physical labor. In order to find long-term prosperity, judicious cocoa production could be the mechanism to bring about stability to farm workers, the forest, and the supply chain as a whole. In order to meet growing demand, companies like Hershey’s must be mindful of nurturing social and ecological conditions in order to create a stable, reliable production arm.

The Compelling Frame

By working hand-in-glove with locals, Hershey has the opportunity to fortify a supply chain that is often wracked by scandal, drought, and political upheavals. While countries such as Brazil have moved towards consolidating cocoa farms and cultivating old-growth trees, they are the exception to the rule. The methods used in Brazil result in consistent crops and quality that other countries strive to match.

Additionally, the predictable economy based on cocoa production created an educated, largely literate, working class that was able to adapt to upheavals like the “witches broom” fungus that destroyed much of the crop in 1989. These farmers adapted by switching crops, moving to cattle, and studying which cocoa plants resisted the fungus. At its height, Brazil accounted for nearly 15% of global cocoa production, and after dropping to 6% in the nineties, it is clawing back with the help of government nurseries and scientific advancements (Silberner, 2008).

In the Sundra Islands of Indonesia, Sulawesi farmers are adopting shade-growing methods in the large grasslands where the cocoa is plated. Though there are no shade-trees indigenous to the plains, farmers make use of planting Gliricidia trees in order to capitalize on available land and prevent expansion into forested areas. This program is done through government programs designed to educate a relatively young industry which some industry experts believe may reach 500k tons a year (Ruf & Zadi).

Moreover, the judicious application