Cadbury agrees cocoa deal

Chocolate maker Cadbury today announced an international cocoa deal intended to guarantee a long-term supply of the vital ingredient.

The investment will impact an estimated one million cocoa farmers located primarily in Ghana, but also in India, Indonesia and the Caribbean, all nations where Cadbury sources its cocoa.

Ghana is key to the confectioner’s business and brands using Ghanaian cocoa beans include Cadbury Dairy Milk, Wispa, Flake, Crème Egg and Buttons.

Research by Sussex University, funded by the company, has shown that the average production for a cocoa farmer has dropped to only 40% of potential yield and that cocoa farming has become less attractive to the next potential generation of farmers, according to a statement by the company.

The initiative will work to improve cocoa yields as well as invest in quality of life measures, including building schools, libraries and wells, all intended to attract the next generation into cocoa farming.

“In Ghana, there is a phrase ’Coco obatanpa,’ which means ’Cocoa is a good parent. It looks after you,”’ said James Boateng, the managing director of Cadbury Ghana.

“We hope with this initiative, Cadbury and our partners can be a good parent to cocoa,” he said.

In the coming year, Cadbury will invest nearly £1m (€1.3m) as a seed fund to establish the cocoa partnership. By 2010, annual funding will rise to around £5m (€6.7m).