Cocoa Impact Report – 2021

Global cocoa production has grown to over 4 million tons a year and is dominated by Côte d’Ivoire, which produces around 2.2 million tons annually, and Ghana (1.1 million tons in 2021). Together, these two countries account for over 50% of the world’s cocoa output. The global Fairtrade cultivation area of organic cocoa increased by 3% in 2020. Côte d’Ivoire, Ghana, and the Dominican Republic remained the top 3 largest producers of Fairtrade cocoa for the United States.

The Fairtrade Premium is the hallmark of Fairtrade America’s certification model. On top of the price that farmers and workers receive for their commodity or labor, they receive an extra sum of money to invest in improving the quality of their lives. The Fairtrade Premium is calculated as a percentage of the volume of products sold. The price is reviewed every two to three years to adjust to local inflation.

As part of the Fairtrade International network, farmers join with other farmers in local cooperatives. The Fairtrade Premium is paid at the cooperative level, so Fairtrade farmers’ democratically elected representatives vote on how the money is used to support business and community development. We believe that farmers are in a much better position to decide what investments will improve the quality of their lives and know best how to spend this money.

Producer Highlight: CONACADO

The Dominican Republic is the second lowest income country in the Caribbean after Haiti, with 40% of its population living below the poverty line. Cocoa is grown there by around 40,000 small-scale cocoa growers.

CONACADO cocoa cooperative in Santo Domingo is made up of 182 small-scale producer associations with a total membership of 10,000 cocoa farmers. The average farm is 4.3 hectares (10.6 acres) where cocoa is grown under the shade canopy of tall native trees and smaller banana, citrus, and avocado trees whose fruit is sold at the local market. Vegetables are also grown for home consumption.

Almost half of CONACADO’s members’ products are now sold on Fairtrade terms, and the additional income received through Fairtrade Premiums has been invested in processing and warehouse facilities to improve the quality of their cocoa. Last year, 30 extension officers were employed to provide technical training to support farmers in improving yields, converting to organic production, and planting new trees. Schools have been built and repaired, with scholarships and equipment provided to students from lower income families. A new IT center helps children with schoolwork and brings the internet to the community. A clinic, free medical checks, and clean water projects are improving community health.

The Sustainable Development Goals (SDGs) are an ambitious set of 17 overarching global goals adopted by the UN General Assembly in 2015 to combat poverty and achieve sustainable development. The goals set the ambition of ending poverty “in all its forms, everywhere,” while leaving no one behind. They represent a powerful opportunity to improve the lives of the 1.3 billion small-scale farmers and agricultural workers upon whom the world depends to produce our food and protect our planet.

But what does this look like on the ground? And how is Fairtrade playing a part in meeting the new goals?

Fairtrade Premium investments made by cocoa producers contribute to several of the SDGs. While most activities can apply to more than one SDG, here we have mapped each category of spending to a unique SDG for simplicity:

SDG1 (no poverty) aims to end poverty in all its forms everywhere. This goal is central to Fairtrade’s mission. Twenty-three percent of the Fairtrade Premium was allocated towards credit services and direct payments to farmer members. Supplemental programs have been introduced so that farmers and workers progress towards a living income and living wages.

SDG2 (zero hunger) aims to end hunger, achieve food security and improve nutrition, and promote sustainable agriculture. Fifty-eight percent of the Fairtrade Premium was reinvested back into farmer organizations, strengthening their ability to participate in markets, access affordable credit, and invest in infrastructure.

SDG11 (sustainable cities & communities) aims to make cities and human settlements inclusive, safe, resilient, and sustainable: Producer organizations are pillars in their communities and are reported to have allocated 9% of their Fairtrade Premium toward social and economic services for communities, including sustainable transportation, the construction of warehouses, bridges, and resilient infrastructure.

Alliances for Sankofa

The Sankofa project supports climate-smart farming practices in Ghana and promotes more resilient cocoa production and trade by training Kuapa Kokoo farmers to implement dynamic agroforestry (DAF) systems that improve food security and incomes through crop diversification and reforestation. The DAF system works primarily to improve the soil and biodiversity using various techniques: mulching, stratification, and planting a wide variety of trees and associated crops, including ones that are pruned each year and used for biomass.

Farmers are encouraged to stop burning organic matter, avoid using chemicals and promote biodiversity by planting a variety of trees and food crops to improve soil health and inset CO2 emissions. Carbon sequestration through these actions means farmers will earn and trade carbon credits from the trees in the future.

The project currently takes place on more than 400 hectares and directly benefits the 2,900 members of the Kuapa Kokoo and their local community.

“Cocoa farming is very important so that I can take care of my children and grandchildren. Cocoa does very well under this system. I can earn money from selling the crops I grow, and I have food to feed my family.” – Emelia Debra, Cocoa Farmer