Belize Chocolate Goes Green - Report Example

Belize Chocolate Goes Green Guatemala has seen the clear cutting of its once pristine jungle forest to make way for modern, plantation style citrus orchards and cocoa groves. It has brought with it a demand for chemicals to fight the disease, fungus, and pests that inhabit the trees and are locked into a cycle of chemical technology that is self perpetuating. Just 12 years ago, a Mayan culture was locked into a similar cycle of destruction. They radically changed directions and in the district of Toledo in neighboring Belize, the farming methods and results are quite different today. While Guatemala has decimated the forests and destroyed the wildlifes habitat with chemicals, Toledo has taken an organic approach. Coming back from the edge of destruction just 12 years ago, Toledo has profited by implementing environmentally and socially responsible programs that have been able to sustain and return a steady growth rate along with numerous social benefits. The Mayans in Toledo market a product that is produced by a set of strict internationally accepted guidelines under the brand name Maya Gold, marketed by Green & Blacks Organic. Justino Peck, chairman of the Toledo Cacao Growers Association (TCGA) says, "[…] we have all the birds and animals with us for our grandchildren to see" (as cited in Purvis, 2006). In 1993 the head of Whole Earth, Craig Sams, came to an agreement with the TCGA to grow and market organic cacao. Sams fledgling company had only recently been expelled from Togo West Africa due to political instability. Belize was open to fresh ideas after the United States Aid for International Development had abandoned the area after years of farming based on massive chemical applications. These years had left the land barren and the farmers destitute. Sams proposed organic methods and guaranteed a minimum price for the cacao, no chemical applications, and an operation that was based on Fairtrade principles. He guaranteed to purchase all of the organic cacao the TCGA could produce to be marketed under the Green and Black label. An alliance with the principles of Fairtrade, and an economy that was receptive to fresh ideas, paved the way for the future success of the TCGA, One of the basic components that would be necessary for the long term viability of Green and Blacks new product, Maya Gold, would be the accurate prediction of an increase in demand. Sams had agreed to guarantee twice the market price in anticipation of growing demand. A 1994 survey reported that 63% of the people in the United Kingdom would be willing to pay more for a product that considered the peasant growers as more equal trading partners (For sale: Peasant-friendly products, 1994). After 12 years of research and production, demand continues to outstrip supply and sales are growing at a 72% rate (Purvis, 2006). Maya Gold already purchases every bit of cacao that the TCGA produces, and is faced with a shortage of supply. Since the product is organic, it must adhere to strict guidelines which limits their ability to significantly increase production, and prevents competition from entering the market quickly. Increasing supply has been a focus of Green and Black, and in recent years the Maya Gold product has seen innovation in the peasant driven economy. What was once an economic system that was based on farmers barely able to subsist on rising expenses and falling prices, has been replaced by farmers branching into other areas of the supply chain. Petrona Caal and her daughter operate one of the 12 nurseries growing 550,000 specialized seedlings that will be required by Maya Gold in the next few years (Purvis, 2006). Maintaining the Fairtrade seal and satisfying the particular requirements of the growers, curtails the number of sources of seedlings available to Maya Gold. This has resulted in a string of successful nursery operations where Caal, and others like her, earn $250 per month, which is only slightly below the areas average per capita income (Economic indicators - Beliz, 2003). This stunning turnaround was made possible by the integration of fairtrade practices into the daily economic activity of the local population. The Fairtrade logo, the single and familiar F, is awarded to those products that protect the rights of the producers and enhance the profit of those at the lowest levels of the supply chain, generally the peasant farmers. Along with a more active participation in the economy, the residents of Toledo also benefit by Fairtrade practices that return profits back into infrastructure improvements. Rogers (2004) describes the motivation of establishing the foundation as, "The Fairtrade Foundation was set up in 1992 by a group of development companies, including Oxfam, Christian Aid and Traidcraft Exchange, to buy produce direct from farmers in developing countries at fairer prices" . Maya Gold has extended the concept to encompass various socially responsible obligations. These have not only aided the local population, but have also been a major part in securing Green and Blacks long term objectives of brand recognition. Maya Gold was the first product to be awarded the Fairtrade seal in 1994, and should not be confused with the numerous socially responsible practices that Maya Gold also engages in. They have gone well beyond the simple act of returning a substantial percentage of the profits back to the peasant farmer. With the fair prices paid to the producers, Maya Gold has actively invested money into the economy of the country and in doing so has made a long term commitment to the communities. Education was an area that Maya Gold has focused on since its inception, and is an area that gives a luminous demonstration of the value of fair trade to both parties. In 1994 when Maya Gold earned the Fairtrade logo, the Toledo district was on the verge of bankruptcy in education as well as economics. Toledo had been a traditionally poverty stricken area and this was reflected in the level of education. In 1998, Toledo was still suffering from a lack of educational funds as the Maya Gold product matured to the point of just beginning to produce a marketable product. The inability to attract quality teachers was compounded by a shortage of funds that denied the students even the most basic supplies. A survey that year revealed that a shortage of supplies was named as the number one obstacle to education by 75% of the teachers responding (Overview of education in the Toledo region, 2006). As the cacao matured and sales began to increase, Maya Gold profits were returned to fund the educational system. Before the arrival of Maya Gold, only 10 percent of the children were able to benefit from secondary education, but changes and improvements to the transportation system have been able to raise this figure to 70% (Purvis, 2006). Though it still lags Belizes national average of 81%, it illustrates what can be accomplished through sustainable reinvestment in a developing country (Human development indicators, 2006). This increase in school attendance has created a pool of prospective students needed to work in the technologically advancing field of agri-science. Maya Gold has been able to capitalize on the improved educational climate that was initiated by its own investments in Tumul Kin, a technical school. According to Purvis (2006), "Its 20 pupils, aged 14 to 16, grow their own cacao and sell it to Green & Blacks, and the school runs a cacao research centre on the site of an abandoned plantation". Along with education, the Toledo District has seen improved roads, rural internet connections, and power lines. These improvements to the infrastructure have allowed Maya Gold to prosper where others had once floundered. Maya Gold has exceeded societal expectations and in doing so reaped intangible rewards that would not have been available without the initial foresight and planning. The Toledo District, in the heart of the Mayan culture, was rescued from the brink of destruction by saving the fragile social structure while creating a new class of entrepreneurs, women. The wealth brought in by Maya Gold has been used to invest in other commercial ventures such as arts and crafts, pottery, and weaving (Analysis of Maya women, 1998). It has seen dramatic improvements as the opportunities that were created by Maya Gold have been reinvested in diversity. Women have been empowered by the expansion of employment opportunities as well as entering the economy as business owners. The arrival of organic cacao in Belize, sold under the brand name Maya Gold, not only saved the Toledo district of Belize from imminent destruction, it significantly added to the quality of life for its residents. Since Craig Sams moved his startup company to Belize from Toga to escape political instability, the company sales have skyrocketed. The brand Maya Gold has earned the coveted international Fairtrade award. In addition, the company exceeds social expectations and is dedicated to improving the life for their employees and the community. Sales have outstripped demand making it possible for women to invest in other, more traditional ventures. Maya Golds Belize experience has shown that education, transportation, and income can all realized significant improvement by adopting a philosophy of returning company profits to the area, and this has been one of the greatest contributors to their remarkable success. The education system provides them with skilled talent which remains in the area to work and improve the Maya Gold product. When contrasted with the previous plantation design of massive chemical applications to control disease, pests, and fungus, it has been an incredible success. A significant portion of that success can be attributed to Maya Golds commitment to social responsibility and a philosophy based in Fairtrade practices. References Analysis of Maya women (1998). Retrieved November 22, 2006, from http://geography.berkeley.edu/projectsresources/MayanAtlas/MayaAtlas/women.htm Economic indicators - Belize (2003). Retrieved November 22, 2006, from http://earthtrends.wri.org/pdf_library/country_profiles/eco_cou_084.pdf For sale: Peasant-friendly products (1994). Retrieved November 22, 2006, from Ebsco Host. Human development indicators (2006). Retrieved November 22, 2006, from http://hdr.undp.org/hdr2006/statistics/countries/country_fact_sheets/cty_fs_BLZ.html Overview of education in the Toledo region (2006). Retrieved November 22, 2006, from http://www.tfabb.org/who.html Purvis, A. (2006). How a £1.50 chocolate bar saved a Mayan community From Destruction [Electronic version]. Observer Food Monthly . Rogers, E. (2004). The Fairtrade association [Electronic version]. Marketing . from Ebsco Host. Read More