Prova looking for a long-term equilibrium
For Prova SAS, creating sustainable supply chains is not a novel idea. The multinational provider of coffee, chocolate, and vanilla extracts has a long history of supporting sustainability and making efforts to guarantee that its raw material supply chain benefits both producers and final consumers equally.
The difficulty has always been striking a balance between the requirement to give producers a steady income and the provision of reasonably priced final goods. The fact that the equation has changed in the modern era and sustainability is increasingly becoming more important in consumer purchase decisions makes matters more difficult.
Throughout her time at Prova, Muriel Acat, president, has had to deal with these market conditions.
She stated in an interview with Food Business News that “the market is always a little bit behind us.” “We are a major player and have watched how the markets for cocoa, coffee, and vanilla have changed since 1976 and 1977.”
According to Ms. Acat, money was one of the main issues with sustainability 15 to 20 years ago. Although consumers saw the benefits, they preferred that someone else shoulder the expense.
But, she added, “things have changed.” It is evident to us that the market—by which I mean our customers—is changing.
“They (the customers) will shoulder some of the cost in addition to us. In that regard, we work as a team, and they stand to gain from the sourcing.
There will always be a conflict between the economics of sustainable manufacturing and consumers’ desire to receive the greatest deals, and this conflict will constantly be impacted by fluctuations in the market.
“I want to commit to more sustainable sourcing where the arrangement can benefit the first step in the supply chain,” Ms. Acat stated.
She went on, “Over the last five years, we’ve had very high vanilla prices on the supply side and the growers/planters made money,” using the vanilla industry as an example. However, the market is currently down considerably, and we need to make sure that the supply chain is not impacted.
Prova has engaged in numerous initiatives and collaborations to guarantee the growth and sustainability of sustainable supply chains.
For instance, the business and chocolate and cocoa supplier Barry Callebaut collaborated on a five-year project in 2016 to introduce cocoa planting as a means of diversifying and stabilizing the income of Madagascar’s vanilla farmers. Additionally, the project aimed to promote the adoption of good agricultural practices (GAP) and raise the levels of vanilla curing at the farm level.
A second phase of the project was initiated in June 2022, following the first phase’s “exceeded all expectations,” as stated by the firms. More community-based social projects and GAP training will be introduced in the second phase. Additional commodity diversification is also being considered. Cattle, poultry, patchouli, and aquaculture are among those being considered.
Vanille Durable Bemanevika is one of the other programs that Prova is working in. Its goal is to improve the income of Madagascar’s vanilla farmers by increasing yields and bean quality. In order to support a secure, long-term supply of vanilla that is produced sustainably, the company also participates in the Sustainable Vanilla Initiative alongside businesses like Firmenich and Mars.
“Our goal is to source 50% of our supply chain sustainably within the next eight years,” Ms. Acat stated. “That might sound a little conservative, but we need to include our customers in the partnership,” the speaker said.
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Ms. Acat believes that Prova’s sustainability efforts are an integral aspect of the company’s overall strategy for standing out in the marketplace.
She stated, “We try to have a more personalized offer.” “We spend more time interacting with clients. Compared to the larger guys, we tend to tweak flavors more. Our supply chain strategy affects both the value of our products and those of our clients.