Hershey has teamed up with Mexican cocoa supplier AMCO to re-introduce the cultivation of the commodity in the south of the country.
The US confectioner has launched the Mexican Cocoa Project to help cocoa growing in a country where disease has hit production.
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Hershey claimed the US$2.8m initiative would “help restore the country’s beleaguered cocoa farming industry”.
While the company notes over 1,000 farmers will benefit from the scheme, the programme has a clear business goal; improved cocoa yields will help depress volatility in cocoa prices and therefore the chocolate manufacturer’s costs.
This could be particulary pertinent for Hershey in Mexico, a country where it has invested in production plants in recent years and is a major market for the company outside the US. Hershey has even transferred production from the US to Mexico to serve both markets.
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By GlobalData
