90 ;e Costco Connection OCTOBER 2013
inside costco
unique and successful model for how things
can be done the right way to support the
health of the cocoa industry and the farming
communities that depend on it.”
Fair return to everyone
Farmers in the program are paid the best
prices based on the world market and the
quality of the product. “Costco’s agreements
with the farmers are transparent,” Tess says,
“We have accountability processes that track
revenue to make sure it goes directly to them.”
The program also provides education so
farmers can learn to sell their products, and
cooperatives are trained in management and
distribution methods. Annual audits are conducted to ensure goals are being met, and
each year an independent third party also
audits to guarantee finances are being managed appropriately.
“Ensuring a fair return is more than just
the price paid; it’s also important to be certain
beans are obtained from a source that is socially
and environmentally responsible. We require
that the farmers’ working conditions are fair,
and we empower women through education
while requiring they be part of the decision-making process in their communities,” Sheri
notes. “Costco’s responsible sourcing practices
are evolving, and we are striving to embed the
concepts into all of our buying practices.”
Social impact
One of the most heartwarming compo-
nents of the program is its social impact on the
farmers and their families. I was pleased to dis-
cover that, above and beyond the payments for
cocoa, Costco makes annual donations ear-
marked for local projects. Sheri says, “Each
year the cooperatives decide on a beneficial
project to build, and learn how to enhance
their communities as their businesses flourish.”
One village wanted a maternity ward, as
they had no medical facilities and no vehi-
cles to travel to the nearest clinic. A husband
described carrying his wife 12 miles in the
dark of night while she was in labor, just to
get her to a midwife to deliver their baby.
Early this year, construction of a new facility
was completed, including midwife housing.
The local ministry of health hired a midwife for the site ( 40 healthy babies have
already been delivered), and the maternity
ward provides access to pre and postnatal
care to 4,500 women in seven communities.
The facility is also used for other purposes;
11,000 polio vaccines have been administered to local children there.
So far more than $200,000 in funding
from Costco has helped build seven projects,
ranging from secure storage facilities and a
community center to schools, healthcare facilities and a maternity ward. More than 20,000
people in the area now have access to vital services, and six more projects are scheduled to
start this fall.
Tess sums it up, “We are disciplined in
how we manage the sourcing program. Our
suppliers have on-ground expertise and a
direct relationship with the farming communities, and our system is short without middle-men. Therefore we can afford to pay farmers
fair prices and support community improvements, while still offering great value and
quality to our members. It’s a healthy way to
do business.” C
Sherrie Newman ( sn.firstpoint@gmail.com) is
a marketing and communications consultant
who lives in the Seattle area with her family.
CHOCOLATE
CONTINUED FROM PAGE 89
FAR LEFT: The inauguration
of a school built with funds
earned by the co-op. In
attendance are local gov-
ernment officials, as well
as representatives from
Costco and Blommer.
INSET: An example of
traceability, showing that
these quality beans are
marked for Costco as far back
in the supply chain as the
village where they are collected.
CONTENT PERCENTAGE. Single origin. These are mentioned frequently
when discussing chocolate, but what
do these numbers and terms mean?
The content percentage listed
represents the ratio of cocoa mass
and cocoa butter to sugar and any
other ingredients. The higher the percentage, the more chocolate in the
mix. It takes 2. 2 pounds of fresh cocoa
beans to create enough cocoa mass
and cocoa butter to make 1 pound of
70 percent chocolate.
Single-origin chocolate uses
cocoa beans from a single source,
sometimes a single estate. In its seasonal assortment box, Kirkland
Signature chocolate offers three single-origin foil-wrapped tasting
squares sourced from Venezuela, Ivory
Coast and Papua New Guinea. These
countries represent the three main
worldwide chocolate sources—South
America, Africa and Indonesia, respectively—and Costco provides these
options so members can taste the different flavors; the chocolate content
in each ranges from 50 to 72 percent.
Costco’s goal is to use chocolate
sourced from the farming program in
all Kirkland Signature chocolate products. It is currently used in Kirkland
Signature Milk Chocolate Almonds,
Milk Chocolate Covered Raisins and
Milk Chocolate Macadamia Caramel
Clusters, as well as Kirkland Signature
Chocolate Chips. Costco bakeries also
use the chips, along with chocolate
chunks from the program, in their
cookies, muffins and Kirkland
Signature Chewy Granola Bars.—SN
Costco
chocolate
facts
