Sustainable cocoa. Together with farmers, Cargill is making sustainable cocoa and chocolate a reality.

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1 Sustainable cocoa Building a transparent and sustainable supply chain Cargill Cocoa & Chocolate Together with farmers, Cargill is making sustainable cocoa and chocolate a reality.

2 Committed to sustainability Founded by William Wallace Cargill nearly 150 years ago, Cargill is still a family owned company, with the values and dedication to community service that go with this. At Cargill, corporate responsibility is part of everything we do. We have a companywide commitment to apply our global knowledge and experience to help meet economic, social and environmental challenges wherever we do business. For Cargill Cocoa & Chocolate, sustainability is an integral part of our business. We are taking actions that are delivering real, long-term benefits for cocoa farmers, their families and their local communities. Drawing on our years of experience in sourcing cocoa, we focus on three main areas in working towards a sustainable supply chain: improving farmers livelihoods, supporting communities and minimising environmental impacts. Around these three pillars, we are working in partnership with communities and organizations to deliver measurable improvements that are building a strong base to improve farmers incomes and the ongoing availability of high quality cocoa. Transferring knowledge and improving skills is at the heart of our work. We believe this is key to building a sustainable supply chain making cocoa farmers successful, now and for generations to come. Harold Poelma Managing Director Cocoa Cargill Cocoa & Chocolate Certified sustainable cocoa and chocolate products Consumers these days want fine chocolate that has been sustainably produced. A key partner for us in bringing these products to our customers is UTZ Certified, which stimulates and confirms sustainable growing of cocoa through an independent auditing and certification system. Cargill is a founding partner of the UTZ Certified cocoa program and was the first to bring UTZ Certified chocolate, liquor and cocoa powder to the market. Many of our customers are now engaging in the journey towards sustainability by using these ingredients in their products products for consumers to enjoy and feel good about!

3 Supporting cocoa communities To strengthen cocoa growing communities, Cargill works together with non-governmental organizations and local governments. Our partnerships focus on education and healthcare, as we believe these are vital to helping these rural communities, where many people still live in poverty. Examples of our projects include setting up and renovating schools, building healthcare centers and providing access to drinking water. Sustainable and responsible supply chain Improving farmers livelihoods Demand for chocolate is rising world-wide, while supply poses many challenges. Working to educate farmers in best agricultural practices helps them meet demand while improving cocoa quality and increasing yields which in turn boosts farmers incomes. Minimising environmental impact As part of Cargill s commitment to conserve natural resources, our Farmer Field Schools teach best land use practices and the correct application of pesticides and fertilizers. Our factories employ innovative methods of reducing waste, such as burning cocoa bean shells to generate energy. Cargill sources organically grown cocoa and produces organic chocolate as well. We recently visited the Farmer Field Schools in Côte d Ivoire and were impressed to see how Cargill is working with farmers to reach UTZ Certification. Because we believe contributing to a sustainable cocoa economy will affect our business in a positive way, we look forward to scaling up this fruitful partnership! Eirik Gjertsen Purchasing Director NIDAR Cargill Cocoa & Chocolate Experience, knowledge and passion are the essentials that shape Cargill Cocoa & Chocolate. We combine our deep knowledge of cocoa with broad food ingredient expertise to manage our supply chain from sourcing the beans at origin right up to the delivery of high quality cocoa and chocolate products. We focus on being a reliable partner, uniting with our customers to bring consumers consistently delicious cocoa and chocolate.

4 Supporting cocoa growing communities around the world Cocoa Livelihoods Program reaching 200,000 farmers Cargill and other leading cocoa and chocolate industry companies, in partnership with the Bill & Melinda Gates Foundation, have joined in a 5-year program to improve the livelihood of 200,000 smallholder cocoa farming households in Côte d Ivoire, Cameroon, Ghana, Nigeria and Liberia. Farmer training in Côte d Ivoire Our extensive Farmer Field Schools program, currently held in 300 locations, is constantly being expanded to train the small-scale farmers who grow the cocoa crop. Training increases the supply of certified sustainable cocoa and chocolate. Educating children about healthy eating options in Brazil To help children learn how to plant, grow, harvest, cook and eat vegetables, employees from Cargill Cocoa & Chocolate support 22 schools in the Bahia area in converting unused plots of land into vegetable gardens. This project has reached 8,000 students so far. Education and health services in Ghana and Côte d Ivoire In 2010 Cargill announced a three-year partnership with CARE, a leading humanitarian organization. The project will expand a range of activities already underway to provide farmer training, children s education, healthcare and micro-financing for women. The program aims to reach at least 60,000 children and their families in 140 communities in rural cocoa-producing districts in Ghana and Côte d Ivoire. Orphanage in Côte d Ivoire In Soubré, Côte d Ivoire, we funded the renovation of a children s home. New dormitories are being constructed and beds and other furnishings will be supplied as well as food, healthcare and tuition fees. Once the work is completed, the children will enjoy a safer and healthier environment in which to grow up.

5 Promoting cocoa and training farmers in Vietnam Our investments in cocoa growing countries such as Vietnam contribute to making cocoa a valuable asset in these countries. To develop the needed infrastructure and expertise, we have established three buying stations and trained over 10,000 farmers in Vietnam. We are pursuing this socially and economically sustainable development in partnership with the Vietnamese and Dutch governments and NGOs. Seedling house in Indonesia To promote cocoa growing in South Sulawesi, a seedling house has been set up. It has already distributed 500,000 seedlings to farmers in the region to help them renew tree stocks on their farms. Renovating orphanages in Indonesia Four orphanages and one nursing home on the island of Sulawesi have been renovated. Cargill employees have provided support in maintaining the buildings, supplying food and undertaking other essential activities to ensure the facilities run smoothly. Farmer education in Indonesia Cargill employees travel throughout the cocoa growing areas of Indonesia to train farmers in agricultural practices. Over 5,000 farmers have received professional advice at their farms or farmer training at our training facility in South Sulawesi. Establishing a maternity ward in Ghana Together with Mercy Ships, Cargill opened a new maternity wing and operating room in Ghana, providing pre- and postnatal care to women and infants from Tema and the surrounding communities. Over 1,000 babies have already been born in the ward. 100 Family Farm Schools in Côte d Ivoire & Cameroon In conjunction with the European Institute for Co-operation & Development (EICD), we have set up 100 Family Farm Schools offering training to young people between the ages of 14 and 25. The three-year training program enables the students to become successful and independent rural entrepreneurs. Annually, 2,000 students are trained as well as 600 adults.

6 A supply chain for the future Cocoa can be grown successfully only in latitudes ten degrees on either side of the Equator. This area takes in some of the poorest countries in the world, where farmers confront a number of economic and infrastructural challenges. Particularly in West and Central Africa, where 70% of all cocoa is grown, the sector faces many difficulties, including poor soil fertility, aging trees, improper use of chemicals, uncontrolled forest conversion, low farmer incomes and substandard working practices. We have been among the first to initiate a wide variety of activities to ensure that cocoa is grown in a sustainable and responsible manner and to the highest possible quality. Our infrastructure allows us to work directly with cooperatives and to launch and monitor programs where it counts: on the ground. Lionel Soulard Managing Director Cocoa Côte d Ivoire Cargill Cocoa & Chocolate

7 Investing in the country of origin Over the years we have invested in an extensive network of factories, warehouses, buying stations, research teams and trainers in the leading cocoa producing countries around the world. This infrastructure allows us to initiate programs directly in the cocoa communities and enables us to support farmers to overcome the challenges they face. Investing in quality In West Africa, our processing plants in Ghana and Côte d Ivoire provide local employment and knowledge transfer. Our pod counting teams monitor several hundred sites in cocoa growing areas every three weeks to track crop developments. We are also strengthening farmer cooperatives to make them more effective in providing services, such as loans and healthcare, to their members. Most importantly, we are enabling farmers to participate in a number of innovative and effective activities that are encouraging better working practices and more efficient land use. Aside from benefits, such as healthier trees, better farm management and improved access to schools for children, the main impact is that farmers are benefitting from an increase in their incomes by up to 30%. Upcountry buying stations: a win-win situation Cargill s upcountry buying stations in Côte d Ivoire are an example of how working directly with farmers organizations in cocoa producing areas can create a win-win partnership. These local buying stations mean cooperatives can make smaller, more frequent deliveries, because of shorter travel times, while the quality of the beans is maintained through better storage conditions. The buying stations perform the same services (quality checks, immediate payments, a higher price for high quality beans) that the farmers would receive at the export terminals but closer to home.

8 Farmer Field Schools: training farmers for success Since our first presence in West Africa, we have responded to farmers needs for knowledge and support. The result is our Farmer Field Schools program, the cornerstone of our approach to sustainability. In these schools, thousands of farmers receive the tools and training they need to achieve better land use and a higher price for their crop. In a ten-month intensive course of half and full-day sessions, they learn about agricultural techniques, bookkeeping, and personal health and social issues. As a result farmers have more successful business practices, better quality cocoa, and up to 30% higher annual yields. The training can also make farmers eligible for sustainability certification under the UTZ Certified program, in which case they receive an additional UTZ premium. Currently Cargill has the capacity to train 25,000 farmers annually in a variety of programs in 300 locations. This will be increased to support even more farmers in the coming years and to meet the growing demand amongst consumers for high quality sustainably certified cocoa and chocolate products. Training program The Farmer Field Schools cover farming skills as well as broader social issues: - agricultural practices, including handling cocoa pods, harvesting, use of fertilizers, pruning and weeding - post-harvest practices, such as fermentation and drying of cocoa beans - preventing diseases controlling black pod and pest - farm renewal, such as tree density, dealing with aging trees - social matters including raising awareness of HIV, responsible labour practices and the importance of children s education During the training we are taught to prune dry wood on cocoa trees, to remove dry pods and then to remove brown decays. Once I have done all this I can see there is a major change between my field before and my field today. Thérèse N Guessan Cocoa farmer Côte d Ivoire For more information Please contact your account manager at Cargill Cocoa & Chocolate or cocoa_chocolate@cargill.com.

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