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CARGILL INAUGURATES LICENSED BUYING COMPANY AND NEW PURCHASING MODEL IN GHANA

CARGILL INAUGURATES LICENSED BUYING COMPANY AND NEW PURCHASING MODEL IN GHANA



Cargill has established a licensed buying company (LBC) – Cargill Kokoo Sourcing Ltd – in Ghana. The LBC allows Cargill to directly source cocoa from certified farmers in Ghana for the first time.

So far over 25,000 farmers are registered, of which 9,000 are actively selling through Cargill’s LBC network. Cargill already sources directly from farmers and farmer organisations in other origin countries. Moving to this model in Ghana means that the company will be better positioned to efficiently implement the Cargill Cocoa Promise at scale and better serve its customers, it claims.

Cargill’s purchasing model is built on the principles of sustainability and full traceability in Ghana. Farmers deliver their cocoa to community warehouses where their beans are digitally weighed in front of them, assigned a fully traceable bar code and funds are then transferred straight to the farmer’s phone or e-wallet using E-money through partnerships with E-Zwich, MTM mobile Money and Tigo Mobil Money. The move to mobile money in Ghana adds assurance for the farmer, improves their ability to trade more effectively and eradicates risks associated with cash payments.

Details of the beans are then recorded in a standardized management system before they are collected by larger trucks, which transfer them to central warehouses. Through Cargill’s new bar code system, the company can now trace each individual bag of Ghanaian cocoa, sourced through the Cargill LBC, to the individual farm, creating a fully traceable supply chain down to farmer level for the first time in Ghana.

Speaking about the importance of working with partners to introduce this new payment system into rural areas in Ghana, Lionel Soulard, Managing Director West-Africa Cargill Cocoa & Chocolate said: “It has never been more critical for cocoa farmers in Ghana to be the master of their own destiny and improve their own livelihoods. With the introduction of an innovative digital payment system, this first-of-its kind initiative at scale in Ghana is creating a great opportunity for smallholder finance at the farm level.

“We strongly believe that this way of doing business is the future for cocoa farmers in Ghana. Mobile money is the first step towards improving incomes for farmers, as we build the infrastructure and capabilities for a more efficient and effective supply chain. Our aim is to create an enabling environment for smallholder finance for the future, resulting in better entrepreneurial spirit already noticeable at the farmer level.”

Cargill has established a licensed buying company (LBC) – Cargill Kokoo Sourcing Ltd – in Ghana. The LBC allows Cargill to directly source cocoa from certified farmers in Ghana for the first time.

So far over 25,000 farmers are registered, of which 9,000 are actively selling through Cargill’s LBC network. Cargill already sources directly from farmers and farmer organisations in other origin countries. Moving to this model in Ghana means that the company will be better positioned to efficiently implement the Cargill Cocoa Promise at scale and better serve its customers, it claims.

Cargill’s purchasing model is built on the principles of sustainability and full traceability in Ghana. Farmers deliver their cocoa to community warehouses where their beans are digitally weighed in front of them, assigned a fully traceable bar code and funds are then transferred straight to the farmer’s phone or e-wallet using E-money through partnerships with E-Zwich, MTM mobile Money and Tigo Mobil Money. The move to mobile money in Ghana adds assurance for the farmer, improves their ability to trade more effectively and eradicates risks associated with cash payments.

Details of the beans are then recorded in a standardized management system before they are collected by larger trucks, which transfer them to central warehouses. Through Cargill’s new bar code system, the company can now trace each individual bag of Ghanaian cocoa, sourced through the Cargill LBC, to the individual farm, creating a fully traceable supply chain down to farmer level for the first time in Ghana.

Speaking about the importance of working with partners to introduce this new payment system into rural areas in Ghana, Lionel Soulard, Managing Director West-Africa Cargill Cocoa & Chocolate said: “It has never been more critical for cocoa farmers in Ghana to be the master of their own destiny and improve their own livelihoods. With the introduction of an innovative digital payment system, this first-of-its kind initiative at scale in Ghana is creating a great opportunity for smallholder finance at the farm level.

“We strongly believe that this way of doing business is the future for cocoa farmers in Ghana. Mobile money is the first step towards improving incomes for farmers, as we build the infrastructure and capabilities for a more efficient and effective supply chain. Our aim is to create an enabling environment for smallholder finance for the future, resulting in better entrepreneurial spirit already noticeable at the farmer level.”

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