CONTRIBUTION TO THE ACHIEVEMENT OF GROWERS’ LIVING INCOME

ICAM has acted on multiple development strands, often implemented in a combined effort:?

INCREASE OF CROP YIELD?

to increase the amount produced for the same amount of land cultivated:?

• agronomic training plans and support activities with technical agronomists to improve agricultural practices in the field (GAPs – Good Agricoltural Practices) such as pruning, fertilization, mulching, renewal of older plants, and pest control; this action also has a positive effect in combating deforestation since it “preserves” plantation productivity, reducing the need to abandon land that is no longer productive in favor of new areas;?
• establishment of cocoa collection and processing centers to reduce the crop loss generated by careless and inadequate processing.?

ACHIEVING SUPERIOR QUALITY?

for a product with the highest market value, and for which a premium is paid on the stock market price:?

• training on best agricultural practices and special projects, such as the establishment of clonal nurseries and gardens;?
• development of equipment, techniques and procedures for processing fresh cocoa to enhance the sensory characteristics of the crop;?
• cocoa control and traceability systems (adapted to the new EUDR requirements);
• application of organic cultivation standards16 and achievement of certification: ICAM is among the leading companies in the organic chocolate market, and is a primary stakeholder in the organic cocoa market. This action also has a positive effect in combating climate change and protecting biodiversity.?

DIVERSIFICATION OF CROPS IN AGROFORESTRY SYSTEMS?

Agroforestry systems are particularly suitable for growing cocoa, which – by its nature – can be grown along with banana, coconut and other fruit or timber plants.?

Supplementary crops:?

• provide additional sources of income;?
• improve household food security;?
• counteract climate change and safeguard biodiversity;?
• bring an important benefit from a financial standpoint: since they have different seasonality, they produce differentiated income streams that allow farmers to address their needs outside the cocoa harvest season.?

FACILITATING ACCESS TO CREDIT?

For over 50 years, ICAM has built enduring relationships with cooperatives, establishing a foundation of trust and cooperation for the Company’s commitment to offer annual or multi-year purchasing contracts to all cooperatives from which it sources directly is based. In this way, producers are enabled – by virtue of the contractual commitment – to obtain?access to credit more easily and, consequently, to further invest in their business.?

?In 2023, ICAM facilitated access to credit for 8 cooperatives through annual contracts totaling 2,825 tons. This mechanism enabled the cooperatives to obtain total bank financing of more than $7 million.??

DIRECT SUPPLY?

Where possible, in an effort to transfer most of the value down to the point in the supply chain closest to the farmer, ICAM prefers to source directly from Cooperatives or local traders that group growers together, limiting the use of international brokers to situations where the local market is not sufficiently organized.?

In 2023, 53% of cocoa purchased came from direct channels.?

PREMIUM ON PRICE, MINIMUM PRICE?

also supported by third-party certification systems:?

• Rainforest certification9 guarantees farmers a premium over the stock market price;
• Fairtrade certification9 guarantees cooperatives a minimum price, protection from falling stock market fluctuations, as well as a premium on the price itself;?
• Fairtrade-certified organizations are growers’ cooperatives, which democratically choose how to divide the premium between direct subsidies to the growers themselves – boosting income – or implementation of joint projects to support production or farmer organization, or for the community’s social needs.?