_________________________________________________________________________________________________ Main Interview
can companies overcome them? Barriers to adoption:
■ Investment needed: Small and midsized farmers may lack funds to shift to regenerative practices as it may require material, new planting, or time for the new crops to grow.
■ Lack of incentives: Many food producers focus on short-term costs rather than long-term soil health because of pressure on productivity.
■ Knowledge gaps and training needs: Many farmers are unfamiliar with regenerative techniques.
Solutions: Typically, we see big groups investing in regenerative agriculture( Nestlé for example) and they can help smaller size companies:
■ Financial incentives and long-term contracts: Large companies can provide subsidies, funding, or price premiums to incentivize transition.
■ Education and training programs: Investing in knowledge-sharing and learning.
■ Consumer awareness and market demand: If consumers value sustainability, companies can justify premium pricing, making regenerative practices commercially viable.
Cocoa prices have surged due to climate-related issues, particularly in West Africa. How do you see this crisis compared to past supply chain disruptions? This cocoa crisis is more severe than past disruptions because it is driven by structural, long-term issues rather than temporary supply shocks.
1. Climate change( such as droughts and rising temperatures) is reducing yields.
2. Deforestation and declining soil quality are making cocoa farming unsustainable. 3. Supply chain volatility is forcing companies to rethink sourcing strategies.
Unlike past price spikes, this crisis won’ t resolve quickly— companies must adapt sourcing strategies, invest in sustainability, and explore alternative ingredients.
Major chocolate producers have invested in sustainability programs like regenerative agriculture. How effective are these efforts in securing future cocoa supply? Sustainability programs are a step in the right direction, but their effectiveness depends on:
■ Farmer engagement: Long-term investments in training, technology, and financial incentives.
■ Supply chain transparency: Ensuring sustainability claims align with on-the-ground realities.
■ Scalability: If only a fraction of farms adopts regenerative practices, supply issues will persist.
Sustainability investments need to be deep and long-term, not just PR-driven initiatives.
Looking ahead, do you foresee companies needing to reformulate products or introduce alternative ingredients to manage the rising costs of chocolate? Yes, and some have started already. Companies will likely adapt in several ways:
■ Ingredient reformulation: Using alternatives like carob, cocoa substitutes, or synthetic cocoa to offset costs.
■ Portfolio adjustments: Reducing cocoa content in mass-market products while maintaining premium offerings.
■ Smaller pack sizes or price adjustments: To maintain margins without drastic consumer impact.
The key challenge will be balancing cost pressures with consumer expectations on taste, quality, and ethical sourcing. ■
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