Why African cocoa farmers don’t earn a living income

Many farmers working in the cocoa sector do not earn living incomes. In fact, only 13% of cocoa farming households in Côte d'Ivoire earn a living income, according to the Rainforest Alliance. In neighbouring Ghana, it’s even fewer, at 10%, according to Oxfam America. Some corporate initiatives, such as Nestlé’s Income Accelerator Programme​, have been put in place to help cocoa farmers increase their incomes. Farmer cooperatives have also been set up to give farmers more negotiating power in on-the-ground prices. Some brands, such as Tony’s Chocolonely​, aim to pay farmers more. But a low percentage of farmers earning living income is still persistent in the industry. What are the key causes of this disparity, and how can they be mitigated? Living income for cocoa farmers is, in essence, the ability for them to earn enough money for all members of a household to live life at a decent standard. Cocoa farmers’ living income is calculated through a Living Income Reference Price ...