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CORPORATE SOCIALRESPONSIBILITY AND SUSTAINABILITY<br />

BarryCallebaut<br />

Annual Report2010/11<br />

Market trends<br />

In fiscal year 2010/11, we further intensified our focus on securing along-term supply<br />

of cocoa beans. Our business depends on cocoa, asensitive crop grown in a<br />

narrow geographical band near the equator by mainly smallholder farmers and<br />

their families. Inorder to meet the rising future demand for chocolate, wemust<br />

contribute to ensuring that cocoa is grown in asustainable way that generates<br />

income for farmers and that safeguards the environment. As the world’s largest<br />

cocoa and chocolate company,with operations in key cocoa growing regions and a<br />

history of community engagement, Barry Callebaut is uniquely positioned to help<br />

drive sustainability initiatives.<br />

Trends<br />

Key trends that have continued to have an impact on our company include the<br />

globalization of the food supply chain; increasing consumer demand for safe food<br />

produced in aresponsible and sustainable way, which has heightened interest in<br />

certified products; and the rapid and prolific dissemination of information through<br />

social media and other communication channels.<br />

In 2010/11, more customers explored options for certified cocoa and chocolate<br />

products.Westepped up our sourcing and procurement activities accordingly.<br />

As acustomer-focused company, wework together with customers to meet their<br />

unique requirements,including sourcing cocoa from certified producers or from a<br />

specific origin country. Inaddition to our own programs with cooperatives and<br />

farmers,wesupport other programs and systems that aredesired by our customers<br />

and which strive to improve farming and labor practices,increase farm productivity,<br />

protect natural resources and improve farmer incomes and family livelihoods.<br />

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