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In order to solve various problems caused by chemical fertilizers and agricultural chemicals, moves have been made to breathe new life into organic cotton cultivation through the use of fertilizers made from cow dung and other materials and insecticides made from plants. Together with Kurkku, ITOCHU is engaged in a Pre-Organic Cotton Program to promote the organic farming of cotton.
This program was announced by ITOCHU Corporation and kurkku, represented by the music producer Mr. Takeshi Kobayashi, in approval of the initiatives of Mr. Rajesh Tanwar (photograph) of RAJ ECO FARMS, a support cooperative for farmer education. Mr. Tanwar is teaching organic farming methods and the advantages of organic farming to cotton farmers to persuade them to shift. With organic farming, only cow dung and herbs and trees which the farmers of India can supply by themselves are used instead of chemical fertilizer and agrochemicals.
After the shift to organic farming, it takes three years until a farmer is granted the "organic" certification. Further, production quantities drop by approximately 20% in the short term. The raw cotton in this intermediate phase before being authorized as organic is called "pre-organic cotton" and the drop in the production quantities compensated by a premium price. Supported by this framework, more than 600 farmers are currently participating in this program.
ITOCHU Corporation makes estimations on the sales quantities and a commitment regarding the purchase (support) quantity before the planting. Then, ITOCHU procures this full quantity of pre-organic cotton from Patspin India Ltd. (photograph). The risks regarding the sales quantity and market prices, etc. is borne by ITOCHU, which sells the raw cotton, cotton yarns and products that are made in many directions. The cooperation with kurkku in this initiative improves the visibility of pre-organic cotton among consumers.
The cotton in the PRE-ORGANIC COTTON PROGRAM is cultivated by the farming households supported by Raj Eco Farms, the largest organic agriculture cooperative in India.
Mr. Nanka, Umaldat village |
Mr. Patel and others, Boparupura village |
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RAJ ECO FARMS
Mr. Rajesh TanwarMr. Rajesh Tanwar, Managing Director
"My goal is to generally improve the health and living of the farmers and the environment of the farming land, and to spread this throughout India."
Cotton spinning takes place at Patspin India Ltd., an environmentally friendly company that uses its nine windmills to generate the electricity it needs.
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Mr. Umang Patodia, Managing Director
"I agreed with the policy of Rajesh. In addition, this business is supported by ITOCHU Corporation earnestly trying to promote organic farming."
Cotton before spinning
Spinning machine
The company's wind turbine

After spinning, the cotton yarn is exported from India to China. The pre-organic cotton is knitted at weaving factories.
Knitting machine
Knitting machine
Knitting machine
The knitted fabric is dyed at nearby dyeing factory. (Care is taken to avoid excessive dyeing, to retain the texture of pre-organic cotton.)
Dyeing
Dyeing machine
Sewing factories, such as Shanghai Zephyr International Trading Co., Ltd. and Shanghai Chunchao Garment Co., Ltd., import the pre-organic cotton yarn to sew products through knitting and dyeing processes at nearby subcontractor plants. They take great care to avoid mixing the pre-organic cotton with normal cotton products.
Shanghai Zephyr International Trading Co., Ltd.Mr. Yoshifumi Iwabuchi |
Shanghai Chunchao Garment Co., Ltd.Mr. Hokan So, President |
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We focus on cooperating with kurkku in marketing and public relations activities, helping customers understand the quality of pre-organic cotton and encouraging them to purchase the products. We also sell pre-organic cotton t-shirts through Itokin Co., Ltd., which supports the program.
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Mr. Tomohiro Suga
Director
"There has been a shift from an era where companies selected consumers to an era where we propose the sense of trust and comfort required by the customers. Itokin also supports the basic philosophy of pre-organic cotton, and we are continuing our efforts to get support from as many consumers as possible."
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CSR Consultant,
The CSR Institute, Inc.
Mr. Tomohiko Yamaguchi
Mr. Tomohiko Yamaguchi from The CSR Institute, Inc. conducted inspection visits and interviews for us at each site from the farmers up to the sewing factories.
Many cotton farmers in India are illiterate and not skilled in economic bargaining. Also, many of them run their farm just with their family without belonging to any organization. These are some of the reasons for their disadvantaged position and the underlying cause for various problems.
Even if it takes time, I feel that it is most important to develop social systems and the like for basic education to let farmers learn agricultural methods that are highly productive and good for their health and the environment, enabling them to realize a proper way of living in the economic society.
Meanwhile, the processes after the spinning have regulations and so forth in place, so I think that the issues from the CSR viewpoint are small in comparison with the difficulties faced by the farmers.
The base of this program is the education of farmers to promote the spread of practical organic farming methods. Listening to the persons involved, I gained a good understanding of the framework for realizing the recovery of the farmers' health, an improvement of their lives, as well as a recovery of the soil environment without contradictions.
Meanwhile, organic cotton production is labor intensive. To make sure that farmers do not discontinue their efforts, it is necessary that products from this cotton are sold at a certain quantity and at fair prices. I think that the key for the success of this program lies in whether the costs for the overall operation, including the tracing down to the commercialization, are accurately communicated to the consumers so that they understand costs and purchase these products on a wide scale.
I hope that this business is brought to success through the agreement of both the seller and the buyer side, and that the shift to organic farming is expanded in the future. In addition, I would also like ITOCHU Corporation to promote social and environmental consideration that reaches all the way back to the origin in all regions of its cotton business.
Coffee originates from Ethiopia and other parts of eastern Africa. Since around the 16th century, as liking for coffee among people in Spain and other advanced countries spread, it has been grown in countries with tropical climates, including those in Latin America, that were at the time colonies.
Coffee is a commodity that has attracted attention from a CSR perspective because it is grown in tropical developing nations but consumed in industrialized nations.
ITOCHU Corporation handles coffee produced around the world. In this documentary report, we traced the supply chain for coffee grown in El Salvador and Guatemala, from plantation to consumer.
UNEX, S.A. is founded on the principle of coexistence with small- and medium-scale farmers and support for their autonomy. It provides guidance to small and medium-scale farmers in many regions on compliance with such standards as the certification standards for coffee farmers set by the Rainforest Alliance and Starbucks' C.A.F.E. Practices(*). UNEX, S.A. also conducts businesses to achieve agriculture that balances social, environmental, and economic factors, by purchasing at a premium beans that have met these standards through farmers' efforts.
※ Starbucks' socially and environmentally responsible coffee buying guidelines
An organic farming training center opened on the grounds of the processing plant in Guatemala (April 2010)
Coffee is grown in tropical regions, in highlands at altitudes of 1,000 to 2,000 meters.
A coffee tree ready to be harvested; the fruits turn red when they mature.
Harvesting; only mature fruits are picked by hand.
The tall trees are shade trees; the short ones are coffee trees.
* Standard selling prices for coffee beans are determined by demand in New York, London, and other markets. Local selling prices are then determined by factoring quality and the like into these standard prices.
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Mr. German Humberto, Manager (back right of photo)
"Las Lajas is an agricultural cooperative of 213 small-scale farmers. About 70% of the roughly 900 hectares of farmland are devoted to coffee cultivation. We use the certification standards for coffee farmers set by the NGO Rainforest Alliance to improve our farming, the natural environment, and our lives in general. We are proud that we are practicing completely organic agriculture beyond the certification standards."
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Mr. Juan Cojolon Chuy, Cooperative Manager (second from right in photo)
"We were referred to the coffee buying guidelines, or C.A.F.E Practices, in our dealings with Starbucks Coffee Company, and all of us in the cooperative decided to join the program. We are also working to eliminate the use of agricultural chemicals from our farms, with the help of Francisco from Unex (Guatemala), S.A."
Mr. Juan Francisco Urias, Unex (Guatemala), S.A. (right end in photo)
"We support 18 agricultural cooperatives nationwide, including Alotenango. Agricultural improvement programs like the C.A.F.E. Practices have many requirements, and it is difficult for small-scale farmers to meet all of them. But they are improving every year, and getting higher assessments from inspectors. The most difficult thing is convincing famers that they'll be OK even if they stop using the pesticides and herbicides that they have always used."
Members of the Carolina Cooperative![[Photo]](/en/csr/supply_chain/reportage/img/02/step-01_pic_07.jpg)
Mr. Rene Sanchez Lopez
Cooperative Manager
"We are a cooperative of 70 farms. Before, we were tenant farmers on a huge plantation. We lived like slaves: for example, we did not have the right to negotiate prices.But we all got together and borrowed enough money to buy our own land, and started farming for ourselves. Coffee farms are poor, and it is hard to make ends meet, but I would not trade the autonomy we have won together for anything."
Immediately after the coffee cherries are picked, they begin to ferment and lose their flavor, so the pulp of the cherries is removed within a few hours of harvest, and the drying process is started.
Coffee cherries collected from farmers are soaked in water, and then their pulp is removed.
The pulp and seeds (beans) have been separated. When the yellow seeds are dried and roasted, they become coffee beans.
Processing plant, UNEX, S.A. |
Unex (Guatemala), S.A.Toshiyuki Hayashi, President (until June 2010) |
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After the beans have been processed and dried, they are exported to the points of consumption. They are then roasted and blended by coffee manufacturers and retailers, and offered to consumers.
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UCC is continually increasing its imports of environmentally and socially conscious coffee, including Rainforest Alliance certified coffee. Spurred by customer demand, we expect to increase imports of these types of sustainable coffee even further in the future.
UCC Group, in support for the system of NGO "Rainforest Alliance" which recognizes and certifies coffee farms meeting high-standards such as conserving forests and eco-system, improving the living standards of farmers and etc., have started to handle coffee beans certified by Rainforest Alliance at the coffee mill stores in 2004 for the first time in Japan.
Aided by the growing concerns for safe and reliable foods and conservation of the environment, the sustainable coffees, including Rainforest Alliance certified coffee, are becoming accepted for commercial use and household use, and, with the increased imports every year, has grown to be one of popular products supported by cafés in hotels and coffee lovers.
Recently we receive such inquiries as "I would like to purchase the sustainable coffee," and "Where I could purchase the coffee?" We will be striving to promote the sustainable coffee in order for more customers to familiarize and purchase them by capturing all available opportunities.
Furthermore, in our consistent business activities "from coffee cup to coffee farm," with the objective to minimize the environmental impacts, we are conducting the comprehensive activities for reducing energy consumption and resource recycling. The example of such activities includes CO2 emission reduction by resource saving by lighter product packages and more efficient distribution networks. Moreover, each factory have achieved 15% reduction of CO2 emission intensity so far by such efforts as fuel conversion and persistent energy-saving activities.

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CSR Consultant
The CSR Institute, Inc.
Mr.Tomohiko Yamaguchi
Mr. Tomohiko Yamaguchi from The CSR Institute, Inc. made inspection visits to production sites.
In general, agriculture is the central challenge in the supply chain, both in terms of society and the environment. In order to reach a fundamental solution to the issue of producer prices, controlling balance between worldwide supply and demand is considered necessary. However, during my visit, I have learned another angle to solving this issue. There is a movement where consumers, coffee manufacturers, farmers, and NGOs and other certification bodies are rationally working together, and some schemes (business models) are now rolling out individually which will comprehensively solve issues of farmer poverty, conservation of biodiversity, etc.
What left the greatest impression on me this time was the words of Mr. Hayashi, at Unex (Guatemala): "The most important thing for farmers is to have their own farm land and become autonomous." I saw their efforts directed toward both attaining autonomy for farmers and producing high-quality coffee, by combining several methods, such as providing guidance on farming methods and supports for certification acquisition, purchasing at appropriate prices, distributing organic fertilizers and the like. I think this approach is excellent and can be applied to other fields as well.
Cacao is produced in equatorial regions far from Japan, so cacao production faces challenges common to agriculture in tropical regions: inconsistent harvests and quality due to irregular weather patterns, and crop damage due to pests and disease. As a result, cacao farmers often struggle to maintain a decent standard of living.
As a major supplier of cacao beans to the Japanese market, ITOCHU continuously visits cacao-producing countries to work with local suppliers in ensuring that consumers receive a stable source of high-quality cacao beans.
As a part of efforts to maintain the sustainability of cacao cultivation,we contribute to the KAOKA Fund in Ecuador to support the activities of local farmers involved in cultivating regional cacao varieties and help raise their standard of living.
Cacao farmers. Famers from various production regions gather for joint technical training run by the cooperative
Farmer undergoing training on grafting cacao trees
Confection created by Chef Toshi Yoroizuka
Chocolate is made from cacao beans, and the cultivation of these beans is highly dependent on small farmers in tropical regions. Likewise, Ecuador also depended on many small farmers for the cultivation of its highly aromatic cacao; however, after World War I,the country lost its means to export. As a result, the production balance greatly deteriorated and crop disease spread: these combined factors devastated the industry. Moreover, the international cacao market lacked stability and the situation gradually grew worse.
Given this background, the Union of the Ecuador National Cacao Producers (UNOCACE) was established in 1999 to support farmers and help raise crop quality.
KAOKA, a French manufacturer of organic chocolate, runs a project that involves returning a portion of sales proceeds to cacao production activities. Starting in 2002, KOAKA began supporting the UNOCACE through proceeds from its project fund. The fund primarily works to re-train farmers on the cultivation of regional domestic cacao, while also supporting the production techniques and livelihoods of small farmers by returning the added value gained from high-quality cacao to the farmers. The project has also received support from the chef Toshi Yoroizuka, who creates sweets with KAOKA products. The ITOCHU Group supports the project as well by donating to the fund and selling related products.
Cacao flowers. Many, many extremely small flowers bloom on each tree, but only some bear fruit
Cacao pod. The seeds, which are used to make chocolate,are contained in the fruit's white pulp
Cacao is a tropical plant that grows mainly within 20 degrees latitude of the equator.
Cacao trees are generally planted and cultivated between tall shade trees. The shade provided by the branches allows just the right amount of tropical sunlight to get through. Saplings are grown from seeds, and healthy saplings are then planted in the ground. Saplings are often grafted as a way to maintain high-quality, stable cacao cultivation. For example, in Ecuador, agricultural cooperatives use regional cacao varieties that are highly disease resistant as their crop foundation, which are then grafted to cacao branches that produce highly aromatic fruit: this enables production of a stable supply of high-quality cacao.
Cacao trees bloom with countless small flowers, but less than three percent of the flowers end up bearing fruit. Small insects serve as pollen go-betweens and once pollinated it takes about six months for the flowers to grow into fruit that can finally be harvested. The period from the start of cultivation to when the trees bear fruit is around three to six years. High-yield hybrid cacao varieties may bear fruit in less than two years. Cacao is a tropical fruit, so it can be eaten as a fruit. Regional Ecuadorian cacao varieties include fruit with a sweet, flower-like aroma. There are also hybrid varieties that produce fruit with a refreshing lemon-lime aroma.
Cacao seedpods (=fruit) contain seeds that are used to make chocolate. Once the pods are harvested they are split open and the fleshy pulp and seeds are removed as soon as possible. Farmers harvest the cacao pod and remove the pulp from the pods all by hand. The next step is fermentation.
Cacao pulp and seeds at the start of fermentation. Surface covered with banana leaves
Fermentation in progress. Color gradually turns brown
Pulp and seeds taken from cacao pods are fermented for several days. Yeast, acetic bacteria and other microorganisms activate various chemical reactions during the process of fermentation, which creates the basis of the chocolate aroma and foundation of its flavor. White pulp containing the seeds is gradually reduced during fermentation, eventually leaving only the seeds, which turn brown.
For agricultural cooperatives and export companies with well-established quality control systems in place, the entire harvest to fermentation process is managed by co-op farmers, contracted farmers, or directly owned farms from various regions; furthermore, the entire process until the start of fermentation is completed in the same day. It is also common for farmers not affiliated with any cooperative or organization to sell to brokers after individually conducting fermentation and drying. Even within the same country, there are various routes for the harvest to fermentation process.
After being fermented cacao seeds (cacao beans) contain water, so they are dried until the remaining water content is only 7% to 8%. There are several drying methods, including drying the beans under the sun or drying them with a mechanical dryer that uses gas heat. Since the climate is tropical, with high humidity and a rainy season, organizations like agricultural cooperatives and export companies that consolidate and process cacao in large quantities tend to use both sunlight and mechanical drying methods.
Cacao beans are not shipped for export until they pass quality inspections for aroma, flavor, water content and other characteristics. If the water content is high, it is adjusted again before shipping. Cacao beans are also split open to inspect for mold and insect damage.
Cacao beans produced in various regions are consolidated and exported to Japan, but prior to export the traceability of the beans is verified.
Pulp and seeds harvested by farmers are transported to fermentation facilities. They are carried by donkey on mountain paths
Cacao beans before export

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Chocolate imported into Japan goes to chocolate manufacturing facilities after passing through quarantine for residual agricultural chemicals and other quality and health inspections.
Pebbles, cacao branches and other foreign substances are removed in the cleaning process and the beans are then roasted. Roasting is a major factor determining chocolate quality, as is the blend of cacao beans that is used. The roasted beans are crushed and the shell removed and then pulverized in a grinder to make a paste called cacao mass.
Chocolate dough is made by adding sugar and cocoa butter to the cacao mass. For milk chocolate, milk powder is also added. Fine particles of cacao, sugar and other ingredients are ground with a precision-crafted metal roll refiner to create smoothly textured chocolate flakes. Next the flakes are processed for an extended period of time in a machine called a conche to complete the process.
Chocolate made through this process is then tempered, put into containers, cooled and hardened or is transported to confectionary manufacturers in melted form via tanker trucks.
Confectionary manufacturers process the chocolate into various sweets and candies and deliver them to consumers through retail outlets.
Confectionary manufacturers: Everyday Chocolate CandiesChocolate mass is processed into chocolate candies by confectionary manufacturers. Some companies create chocolate by roasting the cacao beans themselves. |
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café-CACAO Representative
Cacao Hunter®
Mayumi Ogata
Everyone is familiar with sweet, delicious chocolate, but what people are less familiar with is what chocolate is made from, the cacao bean, and where and how it is grown. Most cacao beans are cultivated in agricultural areas far from urban centers in countries near the equator. Cacao beans are produced on the other side of the world, in places like Ecuador, where this inspection was conducted. Cacao beans are able to reach the Japanese market safely and securely, only through the efforts, trust and cooperation of producers and exporters.
What is important in the cacao supply chain is that ITOCHU serves as a bridge between cacao producers and chocolate consumers, who are far removed from one another, and link all the steps on the path from cacao tree to chocolate.