The income of cocoa farmers heavily relies on the price they receive for their harvest. Currently, despite historically high cocoa prices on the global market and efforts by governments, most farming families in the main producing countries like Ghana and Ivory Coast struggle to attain a Living Income.
Key points highlighted in our updated Issue Brief "The Cocoa Price – A Key Factor for a Living Income for Farmers":
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Incomes of many farmers remain low: In the main cocoa-growing countries of Ghana and the Ivory Coast, the historically high world market prices for cocoa are only having a delayed and limited impact on higher incomes for farmers. They are still struggling to earn a living from cocoa farming.
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Price volatility: Cocoa prices are highly volatile, influenced by unpredictable factors and global commodity exchange practices. Limited storage capacity due to financial constraints hampers government’s efforts to secure better prices.
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Sustainable procurement practices: Procurement practices, such as sustainability premiums, direct sourcing, and targeted technical support for farmers based on sustainability considerations and aimed at ensuring a living income for cocoa farming households, have great potential to improve farmers’ livelihoods when implemented effectively, especially when prices are low.
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Enabling government action: Producer countries can create enabling conditions for a living income through targeted supply management, agricultural output diversification, and improved farm-gate prices.
You can access the Issue Brief (available in English, German and French) here:
Issue Brief on Price Update
Themendossier Preis aktualisiert
Dossier thématique prix actualisé