Fairtrade raises the minimum price
Cacao origins, Chocolatemakers, certification, Living Income, our farmers, The factory
Good news!
From 1 October 2019, the Fairtrade the minimum price for cocoa from $2,000 to $2,400 and increases the Fairtrade premium from $200 to $240. This is of course good news!
But we stay sharp!
What is a viable income for farmers?
Unfortunately, despite all the increases, this still does not ensure a viable income. Fairtrade recently carried out its own research Fairtrade has recently carried out its own research and comes to the same conclusion, especially in the main producing countries Ivory Coast and Ghana, the income of farmers remains very low even with the new prices and they live in extreme poverty (below $ 1.50 per person per day).
Low cocoa prices perpetuate illegal practices, of which child labour is the most conspicuous. Despite all the media attention, this problem has only grown in recent years, particularly in West Africa.
What do Chocolatemakers think?
Fairtrade must stand for fair trade ...
... with which the farmer can make a reasonable living, that is what the consumer expects and that is what the system should guarantee.
The cocoa price is structurally too low, with all its consequences, such as child labour, deforestation, poverty, soil exhaustion and the disappearance of biodiversity. The price must be substantially and structurally increased and must be passed on in the price of chocolate. Ultimately, there must be a fairer distribution of profits in the chain.
A low cocoa price ensures good profits for chocolate companies and brands. It is unacceptable that the suppliers of the most important raw material of chocolate are themselves living in bitter and extreme poverty.
What do we do?
Better prices and infrastructure for farmers.
From our start in 2011, we have consistently paid above-market prices, and above Fairtrade prices: between $3,700 and $5,000 per 1,000 kg.
But we are not a multinational company with a large share of the market, which is why we also started a different process in 2014.
Instead of supplying a cheap raw material, the farmer himself must be enabled to process his cocoa and add value, and thus receive a larger share of the consumer price. In Peru, we are building a cocoa processing plant in cooperation with the farmers' cooperative. In this way, we are turning the farmers into real 'Chocolate Makers'!
This factory can process cocoa for 100 million chocolate bars and the farmers own the factory. The factory will be operational from the beginning of 2019, a historic fact and a milestone in our existence!
Read more:
Demystifying the cocoa sector in Ghana and Côte d'Ivoire - KIT
Fairtrade Living income reference prices for cocoa - Fairtrade
Higher Fairtrade prices are still unfair, says Cocoa for Change founder - Food Navigator
Cocoa farmers to earn more through a higher Fairtrade Minimum Price - Fairtrade