{"id":9690,"date":"2016-11-03T22:23:02","date_gmt":"2016-11-04T02:23:02","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/hersheys-and-the-extra-bitter-future-of-chocolate\/"},"modified":"2016-11-03T22:23:02","modified_gmt":"2016-11-04T02:23:02","slug":"hersheys-and-the-extra-bitter-future-of-chocolate","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/hersheys-and-the-extra-bitter-future-of-chocolate\/","title":{"rendered":"Hershey\u2019s and the Extra Bitter Future of Chocolate"},"content":{"rendered":"

Cocoa, the world\u2019s most stubborn tree \u2013<\/strong><\/p>\n

According to the World Cocoa Foundation, the Cocoa tree (which grows the cocoa bean) can only grow in very specific environments, typically humid, rainy tropic areas found within only a tiny 5-degree latitude range on earth.\u00a0 About 70% of world production comes from West Africa, and 1\/3 of world production comes from The Ivory Coast.[i]<\/a>\u00a0 The rest of cocoa production comes primarily from South America and the Philippines.\u00a0 The top producing countries are also some of the poorest in the world.\u00a0 In Ivory Coast and Ghana (world #2 producer), 46% and 24%[ii]<\/a>[iii]<\/a> of the populations are below the poverty line, and ease of doing business is 142 and 102 (out of 190)[iv]<\/a>[v]<\/a>.\u00a0 In addition, both of these countries are very likely to be massively affected by climate change over the next 30-40 years. \u00a0According to Peter L\u00e4derach\u2019s 2013 paper on the effects of climate change in these two countries, rainfall will increase insignificantly by 2050, while temperatures will rise by a full 2.0 degrees Celsius.\u00a0 The increase in temperature will reduce humidity and increase the likelihood of droughts.\u00a0 As a result, land suitable for cocoa production will decrease drastically (See figure below)<\/strong>.[vi]<\/a><\/p>\n

\u00a0<\/strong>\u00a0\"picture1\"<\/a><\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

As one of the largest buyers of Cocoa, Hershey\u2019s has begun to, and needs to continue to take drastic action to create sustainable practices in these countries, and attempt to mitigate the effects of global warming, through a combination of agricultural innovation, structural investments and sustainability initiatives.<\/p>\n

Agricultural Innovation \u2013 <\/strong><\/p>\n

The cocoa tree is a notoriously slow grower, highly susceptible to disease, and extremely hard to grow outside its very limited biome.\u00a0 While conventional hybrid breeding has been prevalent in the industry for years, led by Trinidad\u2019s Cocoa Research Center, to date there has been no attempt to create a GMO cocoa tree that could hopefully leapfrog all current breed\u2019s in their ability to survive and flourish in the future.[vii]<\/a> Innovation in this area might not seem politically feasible today due to the EU ban on GMO crops, however Hershey\u2019s sponsored the sequencing of the cocoa genome in 2010 with results published in nature<\/em>.[viii]<\/a> In the United States, Hershey\u2019s primary market, GMOs are far less of a concern, so hopefully high yield, disease and drought resistant GMO cocoa trees can be grown by Hershey\u2019s suppliers and ensure the survival of affordable chocolate for years to come.<\/p>\n

Structural Innovation \u2013 <\/strong><\/p>\n

Hershey\u2019s is currently also on the ground in The Ivory Coast and Ghana teaching their suppliers how to best grow and maintain their farms with the latest science and techniques.\u00a0 Hershey\u2019s \u201cLearn to Grow\u201d program which is part of the overall \u201cCocaoAction\u201d program, is helping farmers in Ivory Coast replant old inferior cocoa trees with the best hybrids, teaching them methods for maximizing yields and helping them make the most out of fertilizers and other materials.[ix]<\/a> \u00a0This program has a joint effect of maximizing yields for Hershey\u2019s today and into the future and at the same time helps the farmers make a better living. Hershey\u2019s needs to continue these programs, and drive GMO or new hybrid breeds that will better adapt to changing climate conditions.<\/p>\n

Sustainability Initiatives \u2013 <\/strong><\/p>\n

Hershey\u2019s has been a contributor to global warming in the past, however they have made major strides over the past few years to enact change in their sustainability practices.\u00a0 Hershey\u2019s signed a commitment in 2014 to purchase 100% of its palm oil from sustainable sources, rather than palm oil created from deforestation.[x]<\/a>\u00a0 In addition, they enacted aggressive recycling policies, built a LEED Gold factory in their headquarters town of Hershey, PA, and committed to reduce their greenhouse gas emissions by 50% between 2009 and 2025.[xi]<\/a>\u00a0 Overall, these changes only make the smallest dent in overall greenhouse gas emissions, it signals that Hershey\u2019s is ready to fight against human made climate change, for their own sake and for the planet\u2019s.<\/p>\n

For Hershey\u2019s, climate change is fairly inevitable, however the aggressiveness in which they respond to the challenge is so important, because after all, there is no substitute for chocolate.<\/p>\n

 <\/p>\n

Word Count – 730<\/strong><\/p>\n

[i]<\/a> World Cocoa Foundation. \u201cCocoa Market Update\u201d http:\/\/www.worldcocoafoundation.org\/wp-content\/uploads\/Cocoa-Market-Update-as-of-4-1-2014.pdf<\/a> Accessed November 2016<\/p>\n

[ii]<\/a> World Bank. \u201cStatistics on Ivory Coast\u201d http:\/\/data.worldbank.org\/country\/cote-divoire<\/a> Accessed November 2016<\/p>\n

[iii]<\/a> World Bank. \u201cStatistics on Ghana\u201d http:\/\/data.worldbank.org\/country\/ghana<\/a> Accessed November 2016<\/p>\n

[iv]<\/a> Doing Business Index. \u201cIvory Coast\u201d http:\/\/www.doingbusiness.org\/data\/exploreeconomies\/c%C3%B4te-divoire<\/a> Accessed November 2016<\/p>\n

[v]<\/a> Doing Business Index. \u201cGhana\u201d http:\/\/www.doingbusiness.org\/data\/exploreeconomies\/ghana\/<\/a> Accessed November 2016<\/p>\n

[vi]<\/a> Laderach, Peter et al. \u201cPredicting the Future climatic suitability for cocoa farming of the world\u2019s leading producer countries, Ghana and Cote d\u2019Ivoire\u201d Climatic <\/em>Change (2013) 119. http:\/\/link.springer.com\/article\/10.1007%2Fs10584-013-0774-8<\/a> Accessed November 2016<\/p>\n

[vii]<\/a>\u00a0Rupp, Rebecca. “Can GMO’s Save Chocolate?” National Geographic.<\/em> http:\/\/theplate.nationalgeographic.com\/2015\/03\/18\/can-gmos-save-chocolate\/ Accessed November 2016<\/p>\n

[viii]<\/a> Argout, Xavier et al. \u201cThe genome of Theobroma cocoa\u201d Nature <\/em>43, 101-108 (2011). \u00a0http:\/\/www.nature.com\/ng\/journal\/v43\/n2\/full\/ng.736.html<\/a>, Accessed November 2016.<\/p>\n

[ix]<\/a> Hershey\u2019s. \u201cLearn to grow program\u201d https:\/\/www.thehersheycompany.com\/content\/corporate\/en_us\/news-center\/news-detail.html?1980311 Accessed November 2016<\/p>\n

[x]<\/a> Hershey\u2019s. \u201cPalm Oil Press Release\u201d https:\/\/www.thehersheycompany.com\/content\/corporate\/en_us\/news-center\/news-detail.html?1970779<\/a> Accessed November 2016<\/p>\n

[xi]<\/a> Hershey\u2019s. \u201cEnviromental Sustainability\u201d https:\/\/www.thehersheycompany.com\/en_us\/responsibility\/good-business\/environmental-sustainability.html<\/a> Accessed November 2016<\/p>\n","protected":false},"excerpt":{"rendered":"

Everyone loves Hershey\u2019s Chocolate with a marshmallow and graham cracker over a campfire, but by 2050, due to global warming, we might see drastic shortages in their main ingredient, Cocoa! Without long term sustainable and innovative actions by the company, we might be witnessing the end of chocolate for the masses and the s\u2019mores that come along with it.<\/p>\n","protected":false},"author":1833,"featured_media":9691,"comment_status":"open","ping_status":"closed","template":"","categories":[89,1320,1356,1466,1473,1322,14],"class_list":["post-9690","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-africa","category-chocolate","category-drought","category-ghana","category-hersheys","category-ivory-coast","category-sustainability"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\nHershey\u2019s and the Extra Bitter Future of Chocolate - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/hersheys-and-the-extra-bitter-future-of-chocolate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hershey\u2019s and the Extra Bitter Future of Chocolate - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"Everyone loves Hershey\u2019s Chocolate with a marshmallow and graham cracker over a campfire, but by 2050, due to global warming, we might see drastic shortages in their main ingredient, Cocoa! 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