Hersheys Case Study 4 - Millersocent

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CocoaLinkedA Case Study

ProblemProblemAs one of the world’s largest chocolatecompanies, The Hershey Companyreceives cocoa from 12,000 farmersacross 12 districts in Ghana sourcedthrough Ghana’s Cocoa Board. Hershey’sdoes not work directly with the farmers,presenting a unique challenge to ensuring cocoa quality and promoting sustainable agricultural practices on a largescale.SolutionWe are working with Hershey’s to designthe CocoaLink application for Android.CocoaLink is an informational application targeted at cocoa farmers to promote best practices and reinforce thetraining required for sustainability certifications. The app includes both informational articles and quizzes that can beused to assess knowledge retention.ResultResultsHershey’s is piloting CocoaLink in thesummer of 2017, providing the app to800 farmers and training them in itsusage. After monitoring changes in yieldand adoption of best practices, the appwill be refined before it is released. It willbe freely available to promote widespread adoption of best practices to improve the quality and sustainability ofcocoa production worldwide.

works with over12,000farmersin12disctricts

Linking GrowthBouncing down the dirt roads of rural Ghana, the statistics and numbers begin to tell theirstory. Plot after plot of dense, tangled farmland attests to the 45% of the country’s workforcethat makes its livelihood in the agricultural sector. The broad branches and hanging pods liningthe roads affirm Ghana’s status as the world’s second largest producer of cocoa. Basic infrastructure like electrical outlets and paved roads are few and far between, but the massive, isolated cell towers dotting the hills speak to the impressive mobile data penetration of 76%, acrucial communication link in the face of sparse physical and digital infrastructure. It was thiscrossroads of need and opportunity that led to the partnership between Farmerline and TheHershey Company.In Ghana, Hershey’s sources cocoa from 12,000 farmers across 12 districts. The scale of suchan operation presents extensive challenges for communication and farmer support, creatinguncertainty in the quality and sustainability of the cocoa supply. This difficulty is amplified asHershey’s does not directly purchase cocoa, but sources it through Ghana’s Cocoa Board. Tosupport its mission of quality and sustainability, Hershey’s requires that farming and sustainability best practices be passed down the value chain. However, there is a critical gap in information flow, limiting the productivity and profitability of the whole sector.

Farmers who receive certification training and implement what they learn reap significantbenefits. Kwabena Sarfo, a cocoa farmer from Achiase, explained that he learned valuableskills such as proper chemical application and cocoa storage. Now, Kwabena produces higherquality, sustainably grown cocoa, allowing him to sell his product to purchasing companies fora premium price. The certification process, Kwabena said, left him feeling more satisfied withhis work because he feels supported in what he is doing. Through the certification process, hehas learned proper insecticide application to protect his own health while increasing his abilityto support his family.Farmerline meets farmers like Kwabena in our field work every day, uniquely positioning us asa technology company that understands how to repackage information to suit the needs offarmers. Leveraging our knowledge of the farmer experience and our background using mobiletechnology to bridge information gaps, we partnered with Hershey’s to build CocoaLink. Thisfree Android application capitalizes on the prevalence of mobile data to provide cocoa farmerswith digital access to valuable knowledge. The application features educational contentincluding planting tips, proper input usage, and descriptions of best practices while also reinforcing sustainability standards covered in certification trainings. Progress and knowledgeretention can be tracked through quizzes that operate on a point system, adding a competitiveincentive for continued use. The CocoaLink app is not proprietary to Hershey, making sustainable farming knowledge usable by any farmer with a plot of land and a cocoa tree.We strongly believe in the ability of mobile technology to bridge gaps in infrastructure anddeliver key information to those who need it most. Alongside Hershey’s, we are leveraging theavailability of mobile data to improve Ghana’s cocoa industry and the livelihoods of the farmers who call Ghana home.

Developed by Farmerline, Mergdata is a cloud-based communication, surveying, and data management tool.The combination of Android application and web service provides instant analysis of data collected in thefield and allows broadcasting of voice and text messages to thousands of phones at once.10countries

Farmerline is transforming smallholder farmers intosuccessful entrepreneurs by increasing their accessto information, inputs, and resources to increaseproductivity. Using the innovative Mergdata platform, Farmerline offers subscription-based information services to rural farmers and licenses itssoftware to agribusinesses to bridge the information gap between organizations and farmers.The Hershey Company is a US based candy company and one of the largest chocolate producers inthe world. Continuing Milton Hershey’s legacy ofcommitment to consumers, community and children, Hershey’s provides high-quality productswhile conducting our business in a socially responsible and environmentally sustainable manner.For more information visit: farmerline.coFollow us on Twitter: @farmerlineLike us on Facebook: FarmerlineCreated byMiller Center for Social Entrepreneurship is the most successful university-based social enterprise accelerator in the world. Miller Center is one of three Centers of Distinction at Santa Clara University, located in theheart of Silicon Valley. Our mission is to accelerate entrepreneurship to end global poverty and protect theplanet.For more information visit: https://www.scu-social-entrepreneurship.org/

The Hershey Company is a US based candy compa-ny and one of the largest chocolate producers in the world. Continuing Milton Hershey’s legacy of commitment to consumers, community and chil-dren, Hershey’s provides high-quality products while conducting our business in a socially respon-sible and environmentally sustainable manner. Created by

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The Hershey Company Investor Relations Department 100 Crystal A Drive, P.O. Box 810 Hershey, PA 17033 - 0810 Internet: www.thehersheycompany. com Contacts: Sergio S. Flores Senior Manager, Investor Relations Tele: (717) 534 - 7554 Fax: (717) 534 - 6550 E-mail: sflores@hersheys.com Prepared by: Mark K. PogharianFile Size: 1MB

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