The Hershey Company (NYSE: HSY):
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Summit to bring together farmers, researchers, industry and
government to improve livelihoods of small-scale cocoa farmers
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100,000 disease-resistant trees to be distributed to restore
cocoa farms
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Program goal: restore cocoa growing in the ancient birthplace of
domestic cocoa
A little more than a year after announcing an innovative initiative to
restore Mexico's beleaguered cocoa farming industry, The Hershey Company
(NYSE: HSY) and cocoa supplier Agroindustrias Unidas de Cacao SA de CV
(AMCO) are hosting a Cocoa Summit to bring together a wide range of
stakeholders committed to saving Mexico's cocoa industry.
The July 13 summit in Tapachula, Chiapas, marks the next phase of "The
Mexico Cocoa Project." The 10-year, $2.8 million initiative will provide
training in farm renovation and Good Agricultural Practices (GAPs) along
with the distribution of hundreds of thousands of disease-tolerant cocoa
trees to restore more than 1,000 hectares of cocoa farmland in the
Chiapas region of Southern Mexico that have been devastated by tree
disease. The effort intends to quadruple yields, substantially increase
family incomes and contribute to the worldwide supply of sustainable
cocoa.
"The summit will be an important means to reach out to the various
stakeholders who are critical to bringing back cocoa farming in Mexico
and supporting the family cocoa farmers," said Hector de la Barreda,
Vice President and General Manager for Hershey Mexico and Central
America. "From farmers to producers to government and research
institutes, this symposium on cocoa will bring together the right people
to begin the process of replanting and restoring cocoa farming in the
same area where the ancient Olmecs, Mayans and Aztecs first cultivated
cocoa as a food."
The Cocoa Summit is a key milestone for the decade-long project which
began in the summer of 2012. Hershey and AMCO are hosting cocoa farmers
and their families from the Chiapas region of Mexico at a forum for
sharing information about cocoa-growing best practices, success stories
and testimonies that create the foundations for success restoring
sustainable cocoa farming in the region for the long term.
Since the project began more than a year ago, Hershey and AMCO have
built and maintained nurseries to grow disease-resistant tree stock. The
area has been hard hit by Moniliasis, also known as frosty pod rot, a
disease that attacks the fruit of the cacao tree, causing its cocoa
beans to become unusable. As a result, cocoa yields in the area have
dropped by nearly half since 2005.
Following the summit, the partners will begin distributing the first
100,000 disease-resistant trees to cocoa farmers to begin the
rehabilitation of the region's cocoa plantations.
"This summit is a great opportunity after more than a year of hard work
to share the great progress we have made with the producers, build on
farmers' commitment to restore their cocoa farms and regain pride for
cocoa growing in the region," said Tonathiu Acevedo, Director of AMCO.
"A summit with so many important stakeholders demonstrates the power of
what happens when all interested parties come together around a common
cause with a goal of benefiting farm families, communities and consumers
who love chocolate."
The inaugural cocoa summit will help raise awareness among Mexican
farmers and across the country about the work under way to return the
Mexico cocoa industry to a thriving business. The program partners also
hope to grow interest among young adults in working in the cocoa
industry.
Participating farmers will be trained in the highest standards of
sustainable cocoa and labor practices that will enable them to be
certified by third-party cocoa certification NGOs. Farmers who receive
cocoa trees and training through the program are free to sell their
cocoa to whomever they choose.
"We have a strong and growing Hershey business here in Mexico serving
local consumers for more than 40 years and our employees in Mexico are
very proud to be part of an effort to improve the livelihoods of local
cocoa farmers," added de la Barreda. "We are also very proud about the
fact that today we are already using Chiapas cocoa in our chocolate in
Mexico and we look forward to the opportunity to increase the use of
this delicious, high-quality Mexican cocoa in our products and complete
full end-to-end sustainability to our Mexico chocolate manufacturing,
from certified cocoa through chocolate produced under our high-quality,
ethical manufacturing standards."
Hershey's growth in Mexico is part of the company's strategic vision to
grow its international business through key focus markets, including
Mexico.
The Mexico Cocoa Project is one of The Hershey Company's numerous cocoa
sustainability programs around the world as part of its "21st
Century Cocoa Plan" and the company's deep commitment to corporate
social responsibility and the environment. The plan addresses an ongoing
concern of the cocoa industry, which is supporting the long-term
sustainability of the world's cocoa supply. Last year, Hershey committed
to using 100 percent certified cocoa in its products globally by 2020.
Hershey's percentage of certified cocoa will surpass 10 percent of its
total cocoa volume this year and increase to between 40 and 50 percent
by 2016.
Cocoa was first domesticated and used as a food about 3,500 years ago
(around 1500 B.C.) in the tropical lowlands of South Central Mexico by
an ancient civilization called the Olmecs. They believed the seeds they
called kakawa or cacao gave them health and power. Cocoa use in
southern Mexico also traces back to the Mesoamerica cultures of the
Mayans and Aztecs, who considered it a "food of the gods."
About The Hershey Company
The Hershey Company (NYSE: HSY) is the largest producer of quality
chocolate in North America and a global leader in chocolate and sugar
confectionery. Headquartered in Hershey, Pa., The Hershey Company has
operations throughout the world and approximately 14,000 employees. With
revenues of more than $6.6 billion, Hershey offers confectionery
products under more than 80 brand names, including such iconic brands as Hershey's,
Reese's, Hershey's Kisses, Hershey's Bliss,
Hershey's Special Dark, Kit Kat, Twizzlers, Jolly
Rancher and Ice Breakers. The company is focused on growing
its presence in key international markets such as China, Mexico and
Brazil while continuing to build its competitive advantage in the United
States and Canada.
For more than 100 years, The Hershey Company has been a leader in making
a positive difference in the communities where its employees live, work
and do business. Corporate Social Responsibility is an integral part of
the company's global business strategy, which includes goals and
priorities focused on fair and ethical business dealings, environmental
stewardship, fostering a desirable workplace for employees, and
positively impacting society and local communities. Milton Hershey
School, established in 1909 by the company's founder and funded by a
trust administered by Hershey Trust Company, provides a quality
education, housing, and medical care at no cost to children in social
and financial need. Students of Milton Hershey School are direct
beneficiaries of The Hershey Company's success.
About Ecom Cocoa Group
Agroindustrias Unidas de Cacao SA de CV is the leading processor of
cocoa in Mexico and a member of the Ecom Cocoa Group, part of Ecom
Agroindustrial Corp. Ltd. Ecom Agroindustrial is a global commodity
originating and processing company specializing in coffee, cotton and
cocoa, with local presence in major producing and consuming countries.
Ecom is one of the largest merchants of coffee, cotton and cocoa
globally and is leader in sustainable agriculture and traceable supply
chain management.

The Hershey Company
MEDIA CONTACT:
Jeff
Beckman, 717-534-8090
[email protected]