FARMGATE COCOA ALLIANCE STATEMENT ON CURRENT SECTOR PRICING ISSUE

5 July 2019

As stakeholders, particularly governments of Ivory Coast and Ghana and certification organizations, keep debating on what they think should be cocoa farmers income and with the most recent that took place on the 03-07-2019 between two governments, in Abidjan. In a statement on Wednesday 03-07-2019, both the governments of Ivory Coast and Ghana, also maid know their proposal to institute a “premium of $400 per tonne over future export contracts” as a Living Income Differential for cocoa farmers.

Their approach of addressing the issue of farmers income, yes maybe on the short-term, but we do not see this as a sustainable approach on the long-term. Because it will not contribute to alleviate poverty among millions of farmers and their families.

FCA, keeps calling for reform in the sector, in the areas of POLICY and REGULATION, as that is the only way for the sector to become sustainable. This way the sector as a whole will be able to bring real change and ensure fair distribution of sector income and wealth.

Our definition of a sustainable cocoa sector
All stakeholders in the cocoa value chain understand that for the sector to be sustainable, it must be inclusive, transparent and accountable.

  • Inclusive means: farmers must be included in supply chain discussions in regards to policy, regulation and sustainability.
  • Accountability means: role of each stakeholder must be define in order to overcome mismanagement and misappropriation of stakeholders role.
  • Transparency means: better monitor distribution of sector wealth, which will include farmers income, as independent entrepreneurs, and fair distribution of value chain profit.

Building a sustainable cocoa sector whereby farmers can take their responsibility to secure a better livelihood for themselves, their children and can protect the environment. Since cocoa farming communities constitute millions of hard working men and women, they will be able to make an important contribution to the economy of their country, for example by paying taxes to their government, as any other entrepreneur.

Call for a united approach!
We hereby invite all relevant stakeholders to a broader discussion in order to find a collective solution to address the challenges in the sector.

 

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