Läderach's Cocoa Tech Bridge Value Chain Project aimed to improve the livelihoods of cocoa farming communities by establishing a "cocoa tech bridge" for smallholders in the countries of origin. An Information Management System (IMS) was used to manage and monitor sustainable activities. This project came to an end after a nearly three-year project period, and we look back at the project's beginnings, lessons learnt and look forward to the future. Johannes Läderach was interviewed by Christian Robin, Executive Director of SWISSCO.
How did the idea of Cocoa Tech Bridge come about within Läderach? What was the original driver?
Next to the high quality of cocoa, Läderach's first priority in cocoa purchasing are decent living conditions for the cocoa farmers. This is achieved through partnerships at eye level, which are characterized by mutual benefit. Läderach pays a significantly higher cocoa price. On average, this is already one third higher than the reference price in the respective country.
It is very important for us to know the living conditions of the cocoa farmers, environmental standards and the quality of the cocoa. Assurance is only possible if complete traceability is in place. This can now be optimally measured digitally and in real time.
Our guiding principle and the additional initiative of the "Swiss Platform for Sustainable Cocoa", which supported this innovative project through means provided by SECO, meant that an idea could be turned into reality in very good and close cooperation.
There are now many digital tools to improve traceability in the cocoa supply chain. What is innovative about the Cocoa Tech Bridge approach?
The "Cocoa Tech Bridge" digitizes the supply chain and provides full traceability, starting with the cocoa farmer at origin. For us, traceability must be 100% guaranteed. In real time, transactions can be tracked and there is control over the prices and amounts paid.
With the "Cocoa Tech Bridge" we have an app that can be used in different languages and different world regions.
What key lessons learnt can you identify as a result of the project? What results were you surprised by?
We have seen that the "Cocoa Tech Bridge" has huge potential if used and applied correctly. This certainly includes the fact that the app is reliable, can work without an internet connection, is used in different languages, and comes across as user-friendly and intuitive. The collected data also helps us to identify problems in the source and to provide fast and concrete support.
The "Cocoa Tech Bridge" has something universal and could also be used to trace and digitize the supply chain of other raw materials.
On the other hand, we need to be aware that an application that covers a vertical supply chain can be challenging for other companies or partners. Different companies use different tools tailored to their supply chain management, capacity and needs. This raises the question of the practicality of "one-size-fits-all" solutions. If Läderach's partners use different systems in the broader global context, we should also focus on how to make these tools integrable into the "Cocoa Tech Bridge"
What does the project mean for Läderach now? What are the next steps?
The official project phase is now finished and the goal is to continue using and optimizing the "Cocoa Tech Bridge". Currently, we are in exchange with the developers to plan the next steps.
We can imagine multiplying and replicating the "Cocoa Tech Bridge" in other countries and with other partners.
Furthermore, it may make sense to use a technology like the "Cocoa Tech Bridge" in the supply chains of other raw materials as well.
In the future, Läderach would like to create transparency about who has contributed to the product. This is only possible if we have reliable data, which in turn is guaranteed by the "Cocoa Tech Bridge".
I would also like to take this opportunity to thank everyone involved for the very good cooperation so far.
How can other members of the Cocoa Platform benefit from the project? Is the tool open to other companies and organizations?
The technology behind the "Cocoa Tech Bridge" was neither developed nor patented by Läderach. The app was developed in collaboration with FarmStrong Foundation, AgriVanGuard and PCR and then tailored to the specific needs of Läderach and partners at origin. It is open to all to partner with the aforementioned organizations or other suitable partners.
Cocoa Tech Bridge: Main achievements and lessons learnt
The interview was conducted in German and translated into English.
Pictures: © Läderach