Given our rapid growth over the past year, 50% of Tony’s Open Chain partner cooperatives are currently in their Initial Collaboration Agreement, with the other 50% in their first or second 5-year MoU. Investing in partner cooperatives via the cooperative management fee Partner cooperatives play a central role in enabling the 5 Sourcing Principles on the ground. Specifically, they are responsible for: • Enabling a member-led, community-centred approach to implementing our shared programmes. • Implementing and operating BeanTracker, our proprietary software for tracking and tracing beans from farm to processor. • Implementing and operating our approach to the Child Labour Monitoring and Remediation System (CLMRS) (originally developed by ICI and Nestlé). • Ensuring premium payments are distributed to cocoa farmers. • Implementing activities related to the productivity programme, including farmer coaching. Building out these systems requires ongoing technical and financial investment beyond the first couple of months of onboarding. In addition to funding for the initial start-up costs required to set up BeanTracker and the CLMRS, Tony’s Open Chain Mission Allies pay a cooperative management fee to fund further development of the partner cooperatives’ business models and day-to-day operationalisation of programmes. This season, Mission Allies paid €46 per metric ton of cocoa on top of the farmgate price and other premiums towards this goal, totalling €1,234,755 in cooperative management fees. In total, Tony’s Open Chain has invested €3,918,550 in cooperative management fees since its founding in 2019. This fee is a vital investment in the cooperative business model. Such investments are becoming increasingly important in the context of rising administrative costs under emerging due diligence legislation. Companies must take financial responsibility for implementing these compliance requirements, rather than passing the burden onto cooperatives.
KPI 1.3
# and % of partner cooperatives with whom Tony’s Open Chain has committed to:
First 5-year MoU
6 (27%)
Initial Collaboration Agreement
11 (50%)
Second 5-year MoU and onwards
5 (23%)
30
Ending exploitation in cocoa together
Living income
Climate, environment & productivity
Human rights
Governance & finances
Interesting appendices
Scaling for change
Introduction
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