{"id":26066,"date":"2017-11-15T21:40:38","date_gmt":"2017-11-16T02:40:38","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/why-your-chocolate-bar-could-become-a-luxury-purchase\/"},"modified":"2017-11-15T21:40:38","modified_gmt":"2017-11-16T02:40:38","slug":"why-your-chocolate-bar-could-become-a-luxury-purchase","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/why-your-chocolate-bar-could-become-a-luxury-purchase\/","title":{"rendered":"Why your chocolate bar could become a luxury purchase."},"content":{"rendered":"
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How Mars is tackling a global-warming-induced decrease in the world’s supply of cocoa\u00a0<\/strong><\/span><\/p>\n Global temperatures are rising and that could mean problems for the chocolate industry. Mars \u2013 the world\u2019s largest chocolate maker and manufacturer of Halloween favorites like Snickers, Twix and M&Ms \u2013 is facing severe supply chain issues as global warming threatens its supply of raw materials. [1]<\/p>\n Cacao trees \u2013 the key ingredient in many of Mars products \u2013 require very specific rainforest-like conditions to survive. The best area for that is a narrow strip, 10 degrees above and below the equator. [2] Unfortunately, raising temperatures (more specifically, the it\u2019s impact on the increase in evapotranspiration in cacao growing regions) and reduced rainfall are shifting and shrinking the area of land sustainable for growth. Furthermore, munch of the land expected to be suitable in the future lies in government protected preserves. [3]<\/p>\n <\/p>\n Ghana, Indonesia and Cote d\u2019Ivoire produce half of the worlds cocoa. [3] In the 2015 growing season, Ghana\u2019s production dropped 18%. Even more daunting in the face of this decreasing supply, demand for chocolate continues to rise; spurred by a growing population and new wealth in countries such as China and India.<\/p>\n Cocoa was actually the best performing commodity on the S&P in 2015, demonstrating the gap in supply in contrast to other commodities. [4]<\/p>\n <\/p>\n To keep up with demand, growers must farm their land with greater efficiency. Through their Sustainable Cocoa Initiative, Mars is partnering with farmers to provide better materials and access to training. Furthermore, they\u2019ve built Cocoa Development Centers across Africa to \u00a0provide resources on the ground level. These centers allow farmers to connect on best practices and provide a place for them to learn how to mange their crops efficiently, to receive high quality plants and fertilizers, and to learn business practices. \u00a0And at the top of the supply funnel, Mars\u2019 Cocoa Genome project has helped to pave the path for improved plant quality by isolating the traits that breeders need for healthy plants. [5] It\u2019s estimated that these efforts could lead to a 3x increase in output per hectare of farm land. [6]<\/p>\n In addition to the problems faced due to plant growth, Mars faces a threat of decreased labor supply. Farmers are seeing little value in their struggling crops and younger generations are moving into the cities to find work. [7] Mars is attempting to expand their workforce by partnering with CARE International to empower women and bring them into the cocoa production workforce, from which they had previously been excluded. [8] Furthermore, Mars has made a commitment that by 2020, one hundred percent of its cocoa will come from certified sources. Fare Trade premiums can have the added benefit of increasing farmers income, allowing them to invest in their farms and their communities and keeping them in the business. [9]<\/p>\n As part of a more forward thinking initiative, Mars has allocated $1 Billion to fighting climate change. [10] Mars has committed to a number of initiatives , which aim to slow the onset of global warming. Amongst them is a pledge to eliminate greenhouse gas emissions related to transportation by 2040. They plan to achieve this goal through consolidated shipments, driver training and new technology. [11]<\/p>\n While Mars is making impressive strides to save their chocolate production, there is more that they could do. In addition to bringing women into the workforce, they need to increase the appeal of cocoa farming amongst the younger generations through education and proof of success. Additionally, they should consider diversifying their product portfolio to rely less heavily on cocoa. They could target their new, growing consumer base with alternate products. That is a complicated task, as many of the world\u2019s crops are facing climate-change related issues, but it\u2019s a necessary step in the face of uncertainty. Finally, they should consider the impact that their packaging has on global warming and take measures towards sustainable production. [12]<\/p>\n As I struggle between the desire to save the chocolate industry and the jobs and livelihood of the people that farm them, I cannot help but wonder if that is the right thing to do. Cacao planting (and planting of many of the other raw materials in chocolate) encroaches on rainforests, leading to a whole cascade of additional global warming problems. Even as moves are made towards sustainability, there are so many unsustainable factors involved. Where is the line drawn? Can mass-produced cocoa be farmed in a truly sustainable way? Does stopping production hurt more than it helps?<\/p>\n <\/p>\n (Word Count: 735)<\/p>\n <\/p>\n [1] \u201cMars Calls For Business To \u2018Double Down\u2019 On Climate Action.\u201d Huffington Post, <\/em>06 Nov 2017, https:\/\/www.huffingtonpost.com\/entry\/mars-calls-for-business-to-double-down-on-climate_us_5a0053a9e4b05e3e1f0a02b9<\/a><\/p>\n [2] \u201cCocoa Growing Countries.\u201d\u00a0Cadbury<\/em>, www.cadbury.com.au\/About-Chocolate\/Cocoa-Growing-Countries.aspx<\/a>. (Accessed 14, Nov. 2017).<\/p>\n [3] Scott, Michon. \u201cClimate & Chocolate.\u201d\u00a0Climate.gov<\/em>, 10 Feb. 2016, www.climate.gov\/news-features\/climate-and\/climate-chocolate.<\/p>\n [4] Wexler, Alexander. \u201cChocolate Makers Fight a Melting Supply of Cocoa.\u201d The Wall Street Journal, <\/em>13 Jan, 2016, https:\/\/www.wsj.com\/articles\/chocolate-makers-fight-a-melting-supply-of-cocoa-1452738616<\/a>.<\/p>\n [5] \u201cCocoa.\u201d Mars, <\/em>http:\/\/www.mars.com\/global\/sustainable-in-a-generation\/our-approach-to-sustainability\/raw-materials\/cocoa<\/a>. (Accessed 14, Nov 2017).<\/p>\n [6] Wexler, Alexander. \u201cChocolate Makers Fight a Melting Supply of Cocoa.\u201d The Wall Street Journal, <\/em>13 Jan, 2016, https:\/\/www.wsj.com\/articles\/chocolate-makers-fight-a-melting-supply-of-cocoa-1452738616<\/a>.<\/p>\n [7] DesMarais, Christina. \u201cHershey\u2019s and Mars Sweeten Market For West African Cocoa Farmers.\u201d GreenBiz, 20 Mar. 2017, <\/em>https:\/\/www.greenbiz.com\/blog\/2014\/03\/20\/hersheys-mars-sweeten-market-cocoa-farmers<\/p>\n [8] \u201cCocoa.\u201d Mars, <\/em>http:\/\/www.mars.com\/global\/sustainable-in-a-generation\/our-approach-to-sustainability\/raw-materials\/cocoa<\/a>. (Accessed 14, Nov 2017).<\/p>\n [9] DesMarais, Christina. \u201cHershey\u2019s and Mars Sweeten Market For West African Cocoa Farmers.\u201d GreenBiz, 20 Mar. 2017, <\/em>https:\/\/www.greenbiz.com\/blog\/2014\/03\/20\/hersheys-mars-sweeten-market-cocoa-farmers<\/p>\n [10] Bach, Natasha. \u201cThe World\u2019s Largest Chocolate Maker is Committing $1 Billion to Fight Climate Change\u201d, Fortune,com, <\/em>6 Sep. 2017,<\/em> http:\/\/fortune.com\/2017\/09\/06\/mars-pledge-one-billion-fight-climate-change\/<\/a>.<\/p>\n
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