Mars and Ofi: Securing Sustainable Cocoa Supply Chains

Mars, Incorporated and Olam Food Ingredients (Ofi) have announced, in a joint statement, a five-year strategic collaboration aimed at accelerating net zero cocoa production in Ecuador.

The initiative represents a significant step in securing long-term cocoa sourcing, while addressing supply chain vulnerabilities through climate-smart and regenerative practices.

Building on joint work in the region since 2015 and more than 15 years of global collaboration, the programme is designed to reduce greenhouse gas (GHG) emissions while improving soil health, productivity and farmer resilience.

With 60% of Mars' agricultural ingredient footprint related to cocoa beans, the partnership reflects the strategic importance of strengthening cocoa supply chain sustainability. The programme also builds on a decade of joint activity in Ecuador, strengthening long-term impact in cocoa sourcing communities.

The collaboration will aim to support more than 960 farmers across key cocoa-growing regions in Ecuador, including El Oro, Esmeraldas, Guayas, Los Ríos, Manabí and Santo Domingo. These farmers will be able to implement regenerative agriculture techniques such as agroforestry, transitioning away from monoculture systems towards more diverse, forest-like farming structures. The approach is expected to cover more than 9,000 hectares of farmland, helping restore ecological balance while improving long-term cocoa productivity. This scale of land is roughly equivalent to the size of the Greek island of Santorini.

Sourcing resilience through regenerative practices

The partnership signals a shift in how major food manufacturers approach sourcing strategy. By co-investing in regenerative agriculture, Mars and Ofi are working to reduce supply chain risk while building resilience at farm level.

The transition from monoculture to agroforestry systems is designed to improve the stability of cocoa yields, potentially reducing exposure to climate-related disruptions that could impact future supply. This diversified approach creates multiple income streams for farmers while protecting against crop failure.

The initiative aims to make cocoa sourcing more predictable by addressing underlying issues that could threaten supply continuity, including soil degradation, low productivity and farmer attrition. These systemic challenges have long threatened the viability of cocoa production in key growing regions.

"Building on our long-standing collaboration in cocoa sourcing, this effort demonstrates our belief that when companies share common goals, they can deepen cooperation and drive more meaningful impact at scale," says Benjamin Guilbert, Global Vice President, Cocoa at Mars.

"We value Ofi's ongoing commitment to helping Mars realise our vision of a more modern, inclusive and sustainable cocoa ecosystem that can support farmers and the environment."

Carbon reduction across cocoa sourcing

A key focus of the initiative is reducing the carbon footprint of cocoa production while increasing farm-level efficiency. Farmers will aim to adopt low-carbon fertilisers, improved crop residue management and biochar applications to enhance soil fertility.

These methods are designed to reduce GHG emissions, increase carbon dioxide removals and improve overall crop yields. The biochar technique, in particular, offers dual benefits by sequestering carbon in the soil while improving water retention and nutrient availability.

Together, these interventions aim to make cocoa farming more resilient while directly supporting climate mitigation outcomes across participating farms. The programme provides technical support and training to ensure farmers can implement these practices effectively.

According to Andrew Brooks, Head of Cocoa Sustainability at Ofi, the programme is designed to address both environmental and sourcing challenges.

"Together with Mars, we're scaling up regenerative practices like agroforestry and biochar in Ecuador aimed at cutting greenhouse gas emissions and helping to secure the future supply of cocoa.

"By making these practices more accessible to farmers, we hope to reduce barriers for implementation and costly inputs, while opening new income opportunities that can make a real difference to building more resilient livelihoods."

The programme is driven by Mars and Ofi's shared net zero by 2050 ambitions and their commitments validated by the Science Based Targets initiative (SBTi).

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Supply chain investment for long-term stability

Beyond environmental outcomes, the collaboration aims to strengthen the livelihoods of farming communities, with an estimated 4,800 people expected to benefit indirectly. By improving productivity and reducing input costs, the initiative supports more stable and resilient income opportunities for cocoa farmers. This approach could help address labour availability challenges within cocoa supply chains by making farming more economically viable for the next generation.

"True progress on climate requires shared ambition and mutually beneficial value," says Pedro Amaral, Associate Director, Head of Cocoa Climate Sustainability, Mars.

"Having net zero targets validated by SBTi enables a bold framework for Mars and Ofi to invest together in the long term in solutions that are good for cocoa farmers, good for the environment and good for the future of our supply chain."

According to Andrew, the collaboration reflects a broader strategic approach to supply chain management. "Our latest climate action collaboration with Mars is sparked by our shared, science-based net zero ambitions to create change for a stronger food system so we can continue to enjoy the chocolate products we all love. Working jointly in Ecuador since 2015, we're developing local insights to help accelerate positive impact for the people and landscapes vital for cocoa."

Together, the companies aim to co-invest in farmer-centred solutions that improve resilience, support sustainable supply chains and contribute to long-term change across the cocoa sector.