Thursday, December 1, 2016

SCM cocoa production

Today I learned more about supply chain management.  The cocoa farmers in Africa live in poverty because they are at the bottom of the supply chain.  Even though the demand for cocoa is rising each year the cocoa farmers are making less money each year. When a farm begins to fail the families are not able to get new trees or heal the ones they have because their profit keeps falling.  This leads to the farmers abandoning their farms and moving into the cities most of which are not ready to take on the rise in population.  The farmers use their children as free labor to help on the farm because of this they are not able to get an education and they will have no choice but to run the failing family farm.  Big chocolate companies are now setting up schools for the children and paying higher prices for beans that have not been involved in child labor.  Nestle is now making efforts to track their entire supply chain of all of the 12 main ingredients of chocolate.  By 2016 they plan to track 50 % of the supply of the 12 main ingredients.

No comments:

Post a Comment