When Commitment Meets Progress
Sourcing sustainable ingredients becomes more and more a norm in the baking industry, with a significant number of companies and associations choosing to buy products that impact the lives of everyone on the supply chain, from farmers, to bakers, to customers.
This year has shown significant progress in the baking industry when it comes to sourcing ingredients that have been produced with sustainability in mind and in practice. Not only we saw quantifiable results from established traceability programs, like Cacao-Trace, but also we witnessed the expansion of sustainability practices to include other ingredients beyond palm oil, cocoa and vanilla.
Fedima, the Federation of European Manufacturers and Suppliers of Ingredients to the Bakery, Confectionery and Patisserie Industries, published in June its Code of Conduct for Responsible Sourcing in the bakery ingredients industry, renewing its commitment to creating a favorable policy environment, while ensuring a sustainable and innovative baked goods sector.
Fedima’s industry-wide Code of Conduct for Responsible Sourcing is aimed at Fedima members and all suppliers of the bakery and patisserie industry in Europe, providing them with common responsible sourcing standards and guiding them in their implementation.
”The European bakery ingredients industry that Fedima represents is operating halfway along the supply chain, between ‘farm’ and ‘fork’, uniquely placed at the crossroads between production and consumption of baked products,” said Jean-Philippe Michaux, Chair of Fedima’s Sustainability Committee. “Responsible sourcing is a growing challenge to all operators of the bakery value chain and our members are eager to play their part in supplying ingredients that are responsibly sourced to the European bakery sector and its consumers”.
The Code’s standards include compliance with existing laws and regulations, as well as the quality and safety of products and raw materials, ethical business practices, and respect for human rights. A healthy and safe work environment, the minimisation of environmental impact, attention to animal welfare, supply chain transparency, and continuous improvement are also identified as key principles to abide by.
Representing 13 member associations across Europe, Fedima aims to support and grow the baked goods sector by sharing its positions and priorities at EU level, contributing to policy discussions of relevance for the sector.
CSM Ingredients’ Progress in Palm Oil and Cocoa Sourcing
CSM Ingredients group – comprising CSM Ingredients and HIFOOD – has released its third Sustainability Report, highlighting the company’s continued progress and dedication to sustainability, responsible sourcing, and ethical business practices.
A key aspect of CSM Ingredients group’s sustainability approach is its focus on responsible sourcing, which encompasses raw materials such as cocoa, cage-free eggs and palm oil. In relation to Palm Oil specifically, CSM Ingredients group joined the Roundtable on Sustainable Palm Oil (RSPO) in 2021. In 2023, 74% of the total palm oil purchased by the company was sourced through RSPO mass balance or segregated certifications. As for cocoa, about 55% of the direct supply of cocoa purchased in 2023 was certified under Rainforest Alliance, an international non-profit organization that champions sustainable agriculture of coffee, cocoa, tea, and hazelnut.
Hershey’s “Cocoa for Good” Strategy
Hershey has signed a five-year agreement with nine cocoa-producing cooperatives in Côte d’Ivoire as part of its “Cocoa For Good” strategy, a USD500m initiative aimed at addressing challenges faced by cocoa farmers. The deal seeks to foster long-term relationships with farmers and strengthen supply chain resilience.
The memorandum of understanding, signed by Hershey’s Vice President and Chief Procurement Officer Tricia Brannigan, involves Hershey, Sucden, and the nine cooperatives. The partnership is focused on improving farmer livelihoods by professionalizing cocoa farming, increasing profitability, investing in community resources, and promoting environmental sustainability.
Brannigan emphasized the importance of collaboration in building trust with farmers, noting that strong, long-term relationships are key to addressing challenges faced by the cocoa industry. “Improving farmer incomes requires a holistic approach and collaboration across public and private sectors,” she said.
Cacao-Trace’s Promising Results
The latest annual report of the Cacao-Trace sustainable cocoa program from Belcolade and Puratos follows how the initiative is on track to achieve its ambition by 2030 of reaching up to 50,000 farmers and helping all of them achieve a living income. Cacao-Trace made its most significant contribution to-date to cocoa growing communities, reaching over 23,000 farmers and their families, across eight countries, in 2023. Puratos and Belcolade launched the Cacao-Trace program in 2013.