Inspection of Kakao Farms and Supply Chains in Ghana
Management of Korean and Japanese Lotte Food Companies Donate Saplings
Meeting with AfCFTA Secretary-General to Explore Market Entry
Shin Dong-bin, Chairman of Lotte Group, after inspecting a cocoa farm in Ghana, Africa, together with executives from Korean and Japanese food companies, explored entry into the African market.
According to Lotte Holdings on the 10th, on the 8th, Shin Dong-bin, Chairman of Lotte Group, along with executives from Korean and Japanese food companies, inspected a cocoa farm in the Suhum region of Ghana. This visit was part of the ‘Sustainable Cocoa Bean Project’ jointly conducted by Korean and Japanese Lotte. Ghana chocolate, a representative product of Lotte food companies in Korea and Japan, celebrated its 50th anniversary in Korea and 60th anniversary in Japan.
Chairman Shin met with Wamkele Mene, Secretary General of AfCFTA, to explore the possibility of entering the African market. The photo shows Shin Dong-bin, Chairman of Lotte Group (second from the left), visiting a cacao farm in the Suhum region of Ghana and receiving an explanation about the cacao cultivation environment. [Photo by Lotte Holdings]
The Sustainable Cocoa Bean Project is a business aimed at improving the cultivation environment of farms to ensure sustainable sourcing of cocoa, the raw material for chocolate. Korean and Japanese Lotte plan to strengthen cocoa supply chain monitoring with local partners and provide cocoa seedlings and fertilizers. Furthermore, they intend to contribute to fair trade realization by improving working conditions, including the elimination of child labor. Through this project, Korean and Japanese Lotte aim to secure a stable supply of cocoa and offer high-quality products to customers.
The reason for planning such a project is due to ongoing instability in cocoa supply and prices. Ghana, the world’s second-largest cocoa producer, is suffering from poor harvests caused by heatwaves and diseases. Diseased cocoa trees are being cut down and new seedlings planted, but it takes up to five years to harvest the beans. Chairman Shin judged that considering Ghana’s quarantine system and economic level, improvement would be difficult in the near term, and thus decided to visit in person.
Korean and Japanese Lotte will sign contracts with local farms in Ghana and jointly purchase to secure a stable supply of high-quality cocoa. Part of the cost savings from joint purchasing will be invested in ▲improving monitoring systems to enhance child labor conditions ▲developing agricultural education programs ▲building infrastructure.
Also, Chairman Shin, along with Lee Young-gu, Head of Lotte Food Group, Lee Chang-yeop, CEO of Lotte Wellfood, and Kenichi Tamatsuka, CEO of Lotte Holdings Japan, delivered 130,000 cocoa seedlings to the Ghana Cocoa Board. The Ghana Cocoa Board is a government agency overseeing cocoa production, processing, and marketing throughout Ghana.
During his business trip, Chairman Shin met with Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA), to explore possibilities for entering the African market. The AfCFTA, launched in 2021, includes countries with a combined population of 1.4 billion. Its gross domestic product (GDP) reaches $3.4 trillion (approximately 4,666.5 trillion KRW).
After inspecting the cocoa farm and attending the seedling donation ceremony, Chairman Shin said, “I am grateful to the Ghana cocoa stakeholders who have produced excellent quality cocoa for over 50 years, allowing Ghana chocolate to be loved by customers.” He added, “Korean and Japanese Lotte will actively cooperate to enable sustainable cocoa bean production by joining forces.”
Meanwhile, Korean and Japanese Lotte are expanding joint marketing activities centered on the ‘Lotte’ brand in the global market to develop their flagship brands into global mega brands. At the ‘One Lotte Food Company Strategy Meeting’ held on the 3rd of last month in Warsaw, Poland, chaired by Chairman Shin, Pepero was selected as the first global mega brand strategic product, and cooperation plans were established.
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