The Cocoa Snapshot
2022-2023

2023

Reshaping the future of cocoa farming
What is Cocoa Horizons?

How do we drive change?

Cocoa is typically produced by smallholder farmers
in remote equatorial areas. The supply chain faces
considerable challenges such as farmers withlimited resources to invest on their land, high childlabor prevalence, human rights abuses, aging trees,
depleted soils, climate change effects, lack of basic
community infrastructure such as schools, access tosafe water or paved roads.

To drive change, we leverage collaboration andinnovation by:Working with experts and pioneering partners
to build on our collective strengths;
Leveraging data and innovative solutions tomeasure our impact and increase our efficiency;
Targeting the Foundation’s expenditure towards
the most needed and impactful activities;
Leveraging our boots on-the-ground interacting
2023
directly with farmers to learn andpromotenecessary changes;
Helping drive demand for sustainable cocoa byenabling our brand partners to engage with theirconsumers.

In 2015, Barry Callebaut established the Cocoa
Horizons Foundation with the vision to drive cocoa
farmer prosperity by creating self-sustaining
communities which protect nature and children.
The program is implemented across 7 countries byBarry Callebaut entities. In Côte d’Ivoire, we alsocollaborate with Touton, Sucden and ETG to expand
our activities.

Cocoa Horizons currently accounts for 46.4% ofBarry Callebaut’s sustainably sourced cocoa.

Impact and transparency are at the core of ouractivities; that’s why through our annual audited
report, we share how the funds are spent to achieve
tangible results for farming communities.

To access the full progress report 2022/2023, follow this link:
https://www.cocoahorizons.org/reports

By partnering with Cocoa Horizons, you support
the UN Sustainable Development Goals:
https://www.un.org/sustainabledevelopment
Disclaimer related to the use of UN SDGs: The content of this publication has not been approved by the United
Nations and does not reflect the views of the United Nations or its officials or Member States.

Cocoa Horizons - Snapshot 2022/2023

Our 2022/23 financial journey+34%(in CHF)

income vs prior year
representing 13 millions CHF
to support our activities.

Cocoa Horizons
Program income

Income allocations*

Cocoa Horizons
Income expenses

Administration
8%

Environment
11%

Farmer and farmergroups premium

Farmer and farmergroups premium
40%Community
13%

50,053,345
52,541,228
22,804,936

Productivity expenses

14,638,331

Community expenses

5,220,950

Environment expenses

Administrative expenses
Productivity
28%*Actual allocations may vary by +/- 5-10% based on local conditions and situational specifics.

4,836,169
5,040,841

We only fund activities that support the Foundation’spurpose, that’s why we invest in the areas ofproductivity, community, and environment in addition
to farmer premiums.
For transparency purpose, this section provides details
on the amount of income and expenses for 2022/23.
Our activities were funded by a combination of:Funds received from customers who pay a
premium when purchasing Horizons cocoa andchocolate products;
A CHF 4 millions donation from Barry Callebaut;Unspent balances brought forward from the2021/22 fiscal year.
The activities are implemented by Barry Callebaut
employees and other partners.
Disclaimer: Premiums paid to farmers and farmergroups are based upon the volume of beans sourced,
whilst expenditure in relation to the other areas is
performed at the discretion of the Cocoa Horizons
Foundation.

Cocoa Horizons - Snapshot 2022/2023

Key Highlights: Global
We kept expanding the program to new farmers andrecruiting new farmer groups.

247k

+63%
+96k
farmers deliveringcocoa vs 2022

314

farmer groups(+19% vs 2022)

162k 152k
75k

85k

We answered the growing demand for sustainable cocoa..

112k

350k

+100%
+175k
tons of cocoapurchased vs 2022

163k 175k
72k
2018

2018

2019

2020

2021

2022

2023

# of farmers delivering cocoa

89k
2019

111k

2020

EMPOWERED COMMUNITIES

79%

50%

99%

100% by 2025

100% by 2025

+13 millions CHF tosupport the Foundationactivities vs 2022
2021

2022

2023

The 350k tons include 38k tons from 2022 that were validated after the end of last year’s audit.

PROSPERING FARMERS

of cocoa farmers above theWorld Bank International
Poverty Line of USD 2.15/day+34%# of tons of cocoa purchased

TRACEABILITY

of farmers deliveringwith full data

We attracted new funds.

of farmer groups in our direct supply
chain covered by child labor monitoring
and/or remediation activities
100% by 2025

THRIVING NATURE

59%

of cocoa demonstrated
not to be contributing todeforestation
100% by 2025

168k

tons of carbon removals
achieved (in CO2e)Cocoa Horizons - Snapshot 2022/2023

The farmers we support
To better understand the farmers we work with and their daily challenges, we collect information
through census. This way, we ensure that our activities address the complex issues affecting
communities and are tailored to their needs.

KEY DATA AND FACTS
62.5%

Côte d'Ivoire

26.3%

Ghana

247,383

farmers delivering cocoa

+63%

15%

of women

79%

of farmers deliveringwith full datavs prior year

Cameroon

5.5%Indonesia

2.5%

Nigeria

1.2%

Ecuador

1.1%

Brazil0.9%
0Majority of farmers
in Côte d’Ivoire
and Ghana2023

50,00051

100,000

150,000

200,000

7.4

average age

average size ofhousehold

99.9%

49,349farmers receiving
the premium*

farmers receiving
the premium digitally*At the time of publication of this report. Any remaining farmer premium payments are in process and the aim is to close the gap to 100% by the end of this fiscal year.

Cocoa Horizons - Snapshot 2022/2023

Prospering farmers
We are progressing on our journey
to help lift farmers out of poverty
and we are halfway there with 50%
of farmers delivering Cocoa
Horizons﻿above the World Bank‘sInternational extreme poverty line.

Less training, more doing.
This year, the Cocoa Horizons
program continued to shift from a
predominantly training approach toa pre-harvest “doing” approach.
Through the pre-harvest approach,
we support farmers with labor for
pruning and spraying activities.
This win-win activity is very wellreceived as it allows:
An increased yield forbeneficiary farmers;
An additional and diversified
source of income for labor groupmembers during off harvesting
periods. Most of the time, themembers are young farmers or
farmers with a small farm;
New skills acquisition formembers;
A replication on member farms
and for community members of
the pre-harvest practices.

Alongside the pre-harvest labor
approach, individual coaching isdeployed to address the breadth ofeach individual farmer’s needs.
We deploy Farm Business Plans as
the cornerstone of our farmer
journey:
A diagnosis is made together
with the farmer to identify
specific needs.
The farmer receives coaching
and recommendations.
A productivity package isproposed to the farmer (e.g.
fertilizers).
These inputs are proven to increase
yields, and as a result, farmers'
overall income.

Coming up in 2024
To transform the way cocoa is
produced, our Farm services offer
will be tailored further. This will
come with a better understandingof farmers' profiles and adaptedactivities.
We will also continue to increase
digitalisation of farmers' cash
premium payments.
By continuously improving ourfarming model, we keep working
towards an enabling environmentthat will support on the long term aliving income for farmers.

In the past, my farm was dense withmany trees. Such density caused mypods to be rot. Thanks to the pruning
services that I received, my trees now
have adequate light, and I can see thedifference. I am harvesting additional
four bags per season. These extra bags
help me to continue financing higher
education for my children. Just like mycocoa pods, they are also turning outgreat.

Peace Owusu, cocoa farmer
since 23 years,
Juaso Community,Ashanti Region, Ghana.

Cocoa Horizons - Snapshot 2022/2023

Prospering farmers
168,567
cocoa farmers above the World Bank’s
International Poverty Line of USD 2.15/day+39%

vs prior year

84,692 +39%

vs prior year

49,349 n/a

farmers who have graduatedfarmers with digital premium

126,714 +5%

16,707 +191%

vs prior year

farmers who received Farm
Service activities

44,412 +9%
farmers receiving aProductivity Package

vs prior year

vs prior year

hectares supported withpre-harvest interventions

2,246,806 +18%
cocoa seedlings distributed

vs prior year

Cocoa Horizons - Snapshot 2022/2023

Empowered Communities
Child protection through communityempowerment
This year, we reached almost fullcoverage (99%) of farmer groups withchild labor monitoring and remediation
activities. As a result, we identified
44,724 cases of child labor. While thetotal number of child labor cases
identified has risen due to our increased
coverage, we have been impactful inremediating cases during the past fiscal
year, with 55,674 (+51%) of the reported
cases from this and previous years now
under remediation.
To remediate cases, we keep working
with our partners on:
the provision of birth certificates;
the access to bridging classes;
the delivery of school kits;
the sensitization on child protection.
In parallel, community members are
sensitized on gender and social issues tohelp empower women. We know
women play a critical role in childprotection as they are more willing toinvest in their children’s well-being.
Our approach comes also with helping
community members secure anddiversify their income.

VSLAs (Village Savings and LoanAssociations) allow members to poolsavings together and raise resources tocreate a business or to fund household
needs (e.g. medical care, schooling fees).
This year, CHF 1.2 million worth ofsavings was collected and half wasinvested at community level with morethan a third on education for children.
Majority of VSLA members are made outof entrepreneurial women, providingthem with access to financial
opportunities.

Coming up in 2024
We are shifting our model to strengthen
our community systems approach. Itmeans that we will allocate moreresources on child protection at
different levels:
Working with governments toreinforce national child protection
systems;
Collaborating with communities toimprove infrastructures;
Ensuring access to quality education;
Improving access to livelihood
resources for community members.
Finally, we will implement Human
Rights due diligence covering childlabor and forced labor following the 6
steps of the OECD framework to assess
and address all adverse human rights
impacts in our supply chain.

Being part of a community development
committee brought us together to address
our needs. First, we got a water pump. Our
wives used to walk many kilometers every
day to fetch water in neighboring villages.
Our second achievement as community
development members was a school.
The committee made us visible and thanks
to that, we could get funds from thegovernment to have a school in ourcommunity.Then we mobilized our village tobuild the school.
The committee brought a sense ofownership and pride at Akakro. Dreaming forthings that we need is not enough. We needto roll out our sleeves to get things done.
The committee is a good place for that.

Cyprien Kouassi Kouadio,cocoa farmer since 20 years inAkakro, Côte d’Ivoire

Cocoa Horizons - Snapshot 2022/2023

Empowered Communities
99% +4%vs prior yearof farmer groups in our direct supply
chain covered by child labormonitoring and remediation activities

44,724 +131%

vs prior year

child labor cases
identified

55,674 +51%

vs prior year

child labor cases
under remediation

9,343 +255%
child labor cases
remediatedvs prior year

163,532 +26%

vs prior year

farmers trained on genderand social issues

1,249 +12%

vs prior year

VSLAs established or functioning

69% -3%vs prior yearof VSLA members are women

CHF 1,2 million n/a
total amount saved through VSLAs

CHF 0,7 million n/a
total amount loaned through VSLAs

Cocoa Horizons - Snapshot 2022/2023

Thriving Nature
We keep progressing on our journey
towards deforestation free cocoa andadapting to the quickly evolving
legislative landscape.

Adapting to the evolving legislation
landscape

We continued working on themapping of farm plots aligned withefforts towards a transparent andtraceable supply chain, while catching
up with the growth of our farmer base.

By 2025, all cocoa entering Europe will
have to comply with the new EU
Deforestation Free regulation.
To adapt to this upcoming change, wehave reviewed our methodology. It iscurrently very conservative and may
further evolve to match EUDR
implementation practices.

We kept working on implementing
low carbon farming practices andlandscape initiatives.
This year, we expanded our robust
agroforestry approach with now morethan 14,000 hectares established. Theinterest for farmers is growing thanks
to the payment for ecosystem services(PES), helping them diversify theirincome. PES means that farmers get
paid on a yearly basis for the survival of
the planted trees as a reward forcarbon removals. PES were alreadyprovided for more than 3,000 hectares.
To ensure a high survival rate andcarbon removals on the long term, weare balancing our efforts. That’s why,
we slightly reduced the distribution oftree seedlings to invest more into tree
maintenance.
Off farm reforestation continued as we
doubled the number of tree seedlings
distributed to farmers for this purpose.

This year, through our agroforestry
activities, we managed to achieve a19% growth of carbon removals. This
contributes to our customers’ Scope 3
reduction ambitions.

Coming up in 2024
We will pursue our efforts on farmmapping to strengthen our
deforestation free due diligence.
The scale up of agroforestry and large
landscape initiatives to reach ourforest positive ambition will continue.
We will support our partners tocomply with EUDR through a risk
assessment framework and risk
mitigation tools.

Our ambition goes beyond
deforestation-free. Moving forward, wewant also to invest in large-scaleinitiatives on forest conservation.
At the same time, our aim is toempower communities, helping farmers
prosper by increasing the long-term
productivity of cocoa farming inenvironmentally suitable areas while
mitigating the impact of climatechange, preserving ecosystems andrestoring natural biodiversity on existing
farmland.

Tilmann Silber,
Global Forest and Carbon
Program Lead,
Barry Callebaut

Cocoa Horizons - Snapshot 2022/2023

Thriving Nature
59% n/acocoa demonstrated not to becontributing to deforestation

14,099 +77%

79% n/aof plots with a polygon map

168,348+19%

hectares of agroforestry
establishedvs prior year

2,746,684 -32%

3,019 n/ahectares of agroforestry
maintained

tons of carbon removals achieved
through agroforestry

shade tree seedlings
distributed to farmers

vs prior year

vs prior year

CHF 130k n/a

Payment for Ecosystem Services tofarmers

198,164 +21%

vs prior year

99,400 +96%

vs prior year

farmers trained on environmental
protection

tree seedlings distributed off-farmfor restoration purposes