Cocoa farmers face a huge number of challenges, but one lies at the root of many of them: most farmers’ incomes are simply too low. Estimates before the price of cocoa crashed between September 2016 and February 2017 suggested that the price cocoa farmers receive represents less than seven percent of the value of cocoa sold in Europe. With so little by way of return, farmers are barely able to cover their costs. And what is left is insufficient to live on – to feed, house and educate their families. The future is uncertain for most farmers and many young people are leaving cocoa farming in search of better-paid employment.
This report outlines Fairtrade's approach to living incomes and cocoa. It explains how living income reference prices have informed increases to the Fairtrade Minimum Price and Fairtrade Premium. It outlines "an ambitious agenda for action", setting out how governments, chocolate companies, traders, retailers and shoppers can help make the commitment to providing living incomes for cocoa farmers a reality.
