20/21 FULL-YEAR REVIEW

Bringing you news and updates about the Cocoa Horizons Program from around the world.
The Cocoa Horizons Foundation aims to improve the livelihoods of cocoa farmers while protecting
children and nature. The program is currently present in Côte d’Ivoire, Ghana, Cameroon, Brazil,Indonesia, Ecuador and is now being introduced in Nigeria. As of this year, in addition to Barry
Callebaut as our primary program implementer, Cocoa Horizons is partnering with a new third party
implementer in Côte d’Ivoire.

We support the Sustainable Development Goals
https://www.un.org/sustainabledevelopment

Due to the Covid-19 pandemic, some activities continued to be performed in smaller groups orindividually, following local precautionary measures.
*Fiscal year ends on 31st of August 2021

SCALING IMPACT AND DRIVING CHANGE THROUGHPRODUCTIVITY, COMMUNITY AND ENVIRONMENTAL
ACTIVITIESTHE COCOA HORIZONSPROGRAM COVERS:●Farmer Group and Group Member requirements●Traceability of cocoa from farmer to Barry Callebaut or third party
implementer buying site

●Farmer graduations and capacity building of Farmer Groups●Targeted cocoa productivity and income generating activities●Targeted community activities with a focus on child protection●Targeted environmental activities●Transparency of premium flows

FARMER GROUP AND GROUPMEMBER REQUIREMENTS:
100% of farmer groups respect and sign:

FARMER GROUPSThe Supplier CodePARTICIPATING FARMERS& FARMER GROUPSThe Cocoa Horizons
Convention*• Globally 224 farmer groups delivered Horizons cocoa.
• This represents 162,436 farmers delivering cocoa beans, a 45%
increase vs prior year. The increase in farmer base should help tocope with the foreseen growth of the program.

73,010 in Ghana

2,004 in Indonesia

78,296 in Côte d’Ivoire

663 in Brazil

7,731 in Cameroon

732 in Ecuador• The program was introduced in Nigeria this year.

*including the Child Labor Charter andthe Declaration on Protected Forests• 162,834 MT of Horizons cocoa beans delivered (up 46% vsprior year).

TRACEABILITY OF
COCOA BEANS

80,562 MT in Côte d’Ivoire

1,993 MT in Brazil

58,527 MT in Ghana

1,201 MT in Indonesia

16,416 MT in Cameroon

4,135 MT in Ecuador• The majority of Horizons cocoa follows the mass balance
principle. This means it is traced from farmer to first program
implementer warehouse.
• Cocoa Horizons also launched fully segregated cocoa mass:
Cocoa Horizons Inside.

COCOA HORIZONSACADEMYCocoa Horizons continues the roll out of a farmer graduation
system. It allows the evaluation of farmer knowledge, training
outcome and gaps. In this way, the program is able to refocus
resources from Farmer Field schools to more individual coaching.
Good Agricultural Practices, Social and Environmental aspects arecovered in the graduation test.
This year 81,949 farmers graduated with a success rate of 76% of thetotal assessed, reaching a total of 154,378 graduated farmers (up154% vs prior year).
83,892 in Côte d’Ivoire

5,912 in Cameroon

62,510 in Ghana

1,930 in Indonesia

134 in Brazil

Out of the total farmers registered, 66% are already graduated andmoving to the next step, which is personalized coaching andaccessing Farm Services.

PROSPERINGFARMERS
Improving productivity of cocoa farms is a key area of focus. The
Farm Business Plan is the cornerstone of the process to improve
the livelihoods of farmers and their communities.
•86,609 farmers had access to a Farm Business Plan.
This is an increase of 138% vs prior year. This represents 38% of thetotal farmers delivering volume:
34,329 in Côte d’Ivoire

429 in Brazil

29,876 in Ghana

504 in Indonesia

5,209 in Cameroon

295 in Ecuador• 36,387 farmers received productivity packages, meaning a 49%
adoption of the Farm Business Plan.

Farmers out of poverty
To address the poverty challenge, in addition to innovative farm services
and individual coaching, farmers are supported with non-cocoa income
diversification activities. Some examples include poultry, rabbit orvegetable farming and soap production. Until now 2,286 farmers weresupported with income diversification activities.
121,722 farmers in the program (+64,227 vs prior year) are above the WorldBank poverty line of USD 1.90/day. This represents 47% of the total farmers
registered.

Eradicating Child Labor - Risk Based Approach
Cocoa Horizons is applying a risk based approach. This consists ofcategorizing cocoa farming communities as low, medium or highrisk based on socio-economic census data and an algorithm(leveraging knowledge from CLMRS activities) to determine priorityof implementation. The interventions will then be planned andprioritized in accordance with the risk identified and the needs ofthe child and community.
With this approach, the resources are deployed in the mostefficient way in order to eradicate child labor.

COMMUNITY●

184 farmer groups covered by Child Labor Systems
representing 81% of the total (up to 67% vs prior year)●

39,843 households surveyed●

66,974 children surveyed identifying 18,529 cases. This means
72% of children interviewed were not involved in Child Labor.

●

25,186 cases identified from prior years are under remediation

Eradicating Child Labor - Community Engagement
While individual remediation is critical, prevention activities are needed to tackle the root causes of child labor in
the long term.
• In Cameroon sensitization of farmers and their communities via radio programs has started.
• Due to COVID restrictions, the Cocoa Horizons truck was not able to reach communities over the last months.

Women’s Empowerment & Child Protection
The program continues to invest in women’s empowerment, which has apositive impact on preventing child labor and improving household income.
This year 39,298 women are registered Cocoa Horizons farmers, an increaseof 38% vs prior year.
A key element to empowering women has been the creation and strengtheningof the Village Savings and Loan Associations (VSLAs). This activity helps,
among other things, to promote a child-centered approach, build
self-confidence in women and offer financing solutions for farmers.
1,240 VSLAs have been established mainly across Côte d’Ivoire and Ghana(up 55% vs prior year) and the target is to continue strengthening andexpanding them in the years to come.

In addition to farm mapping to ensure the cocoa is not coming fromprotected areas, multiple activities are implemented with the cocoa
farming communities: environmental protection sensitization,
agroforestry, cookstoves and shade tree distribution.

ENVIRONMENT●

74% of Horizons cocoa is provento be free from deforestation●

3,582,408 seedlings weredistributed●

4,578 cook stoves distributed(up 75% vs prior year)

Through these investments, 160,000 tons of CO2 were sequestered(up 21% vs prior year).

OUTLOOKIn West Africa, farmers will face a challenging year, where cocoa bean prices have declined and where prices of fertilizers
are up. Through Cocoa Horizons we will aim to support and subsidize as much as possible. We will focus resources on
supporting pre-harvest work and implementing agroforestry, which should help to improve the overall productivity andincome of the farmers.
The Foundation’s focus will remain on:● Ensuring 100% full data to promote higher efficiency on execution of activities;●Embedding increased due diligence on child labor and forced labor across origins;●Putting a stronger focus on agroforestry, climate smart agriculture and driving activities towards carbon neutrality;●Expanding the program to third party implementers and strengthening in existing origins.

(in CHF)

COCOA HORIZONSPREMIUM DISTRIBUTION:

2020/2021

COCOA HORIZONS PROGRAM INCOME

28,478,891

Horizons Program contributions

COCOA HORIZONS PROGRAM EXPENSES

Farmer and farmer organization premium

6,690,083

Productivity expenses

8,370,249

Community expenses

4,430,626

Environmental expenses

3,799,089

Administrative expenses

3,731,871

The above is an extract from the Foundation’s annual regulatory return. The Foundation’sfinancial audit is performed by PricewaterhouseCoopers AG, Switzerland. Supplementaryprogram income less expenses carried over to next Fiscal year.

2020/21 PREMIUM ALLOCATIONS*Productivity expenses
37%CÔTE D’IVOIRE, GHANA, CAMEROON,BRAZIL, INDONESIA, ECUADOR, NIGERIA
Community expenses 20%

100% of the farmers who delivered Horizons cocoa havereceived the Cocoa Horizons Premium.
Environmental expenses
10%
Farmer and farmerorganization premium
20%

Administrative expenses
13%*Actual allocations may vary by +/- 5-10% based on local conditions and situational specifics.

All of the information contained above has been verified by PwC. The
performance indicators in this Snapshot (except those marked with an *)represent extracts from the Cocoa Horizons Foundation Update Reportfor the year ended 31 August 2021, for which PricewaterhouseCoopers
LLP (PwC) were appointed to provide independent assurance. PwC
performed an assurance engagement in accordance with the International
Standard on Assurance Engagements 3000 (Revised), the scope of which
was to provide limited assurance over the KPIs contained within theUpdate Report.
The Update Report, and PwC's Limited Assurance Report, can be foundat https://www.cocoahorizons.org/reports.

The content of this publication
has not been approved by theUnited Nations and does notreflect the views of the United
Nations or its officials orMember States.

FARMERTESTIMONIALSCÔTE D’IVOIRECAMEROONTUMNDA“I am part of Cocoa Horizons program since 2019.Through theimplementation of Farm service activities on my farm, I have beenable to use less quantities of fungicides, reduce my expenses andincrease my yield. What I prefer is Farm diagnosis because thishelps me to know the health state of my farm and I also
appreciate the coaching visits. I recommend these services to all
my neighbours and to anyone who wants to succeed in cocoa
farming.”

Celestine checking the beans during drying

CELESTINE“I have received coaching on how to farm better, especially in pruning andweeding since I joined the cooperative 2 years ago. My husband and I havea bigger farm in another community but during the war, we run away andsettled here, and since cocoa farming is all we know, we decided to start afarm here. I now produce twice more than I used to. I have opened a bankaccount and support my 2 children who are still in school. I have 6 children
in total. My husband lives in the other community and I am here, and I amokay. I have my farm. I make my own money.”

ECUADOR

Tumnda in his cocoa farm

RAMI
“Cocoa is the main source of income for myfamily and it has become a part of us for years.
I established a farmer group in my village.
Together with my fellow members, we
implemented a service provider group tosupport other farmers rehabilitating andmaintaining their farms. Thanks to Cocoa
Horizons Farm Services program, we haveconfidence in offering our support to otherfarmers. I hope we can contribute to makeproductivity of cocoa farms in our village
improving.”
Rami in his cocoa farm

Iralda in her cocoa farm

IRALDA“I am very happy for the support we are receiving from Cocoa
Horizons. The coach whose concern is not merely to buy our cocoa,
but to support us intellectually day by day so that we can improve
our plantation and our production.”

INDONESIA