In November, SWISSCO Executive Director Christian Robin signed a partnership agreement for a Cocoa Household Income Study with the COCOBOD, a Ghanaian government agency. This study is being conducted jointly by SWISSCO and COCOBOD. The outcomes of the study will inform actions to enhance cocoa farmers' livelihoods.
SWISSCO engages in different activities supporting farmers to achieve a living income, one of which is the above-mentioned study to be carried out in Ghana. This study offers insights into cocoa farmers' household income and how they are affected by the efforts of our projects.
Why measuring a living income is important
Several factors influence the income of cocoa farmers, including market prices, productivity, input costs, and broader economic conditions. The so-called 'living income' represents the income needed for a household to afford necessities like food, housing, education, and healthcare. By achieving a living income, cocoa farmers and their families can lead dignified lives, breaking free from the cycle of poverty that has persisted in many cocoa-producing regions. The so-called living income gap shows the difference between a household's actual income and the income required for a decent standard of living. This gap reveals the challenges cocoa farmers face in meeting their basic needs and living a respectable life. Bridging this gap is essential to create a more sustainable and equitable cocoa industry.
Achieving a living income for farmers
To define adequate strategies to achieve a living income for farmers, stakeholders from both producer and consumer countries ought to share a joint understanding of the context. Therefore, the SWISSCO-COCOBOD study aims to provide comprehensive information on the household incomes of cocoa farmers in Ghana.
Objectives of the study include:
- estimating average household income,
- identifying the living income gap,
- assessing determinants of income,
- evaluating the impact of sustainability interventions by SWISSCO, and
- estimating the living income reference price at the farm gate.
Pooling Knowledge and Resources
Through this study, SWISSCO aims firstly to raise awareness among regulators, major stakeholders, and partners in the cocoa value chain about the economic challenges encountered by farmers. Secondly, to identify strategies that tackle the underlying causes of income issues and foster long-term sustainability. Currently, the methodology of the study is being developed, and it will be tested and implemented starting in February 2024. The results of the study will be presented in the second half of 2024.
Besides COCOBOD, the Swiss Research Institute of Organic Agriculture (FiBL) as well as the School of Agricultural, Forest and Food Sciences of the Bern University of Applied Sciences (HAFL) will have a leading role in conducting the study. Collectively, we offer diverse expertise, pooling our knowledge and resources to address the intricate challenge of securing a living income for cocoa farmers in Ghana.
Furthermore, SWISSCO is involved in and thus closely aligned with the Household Income Study conducted in the neighbouring country Cote d'Ivoire overseen by the Alliance on Living Income and its members.
A Step Toward Sustainable Cocoa Farming
By understanding the living income context, identifying income gaps, and understanding the effects our members' projects have on farmers, we aim to pave the way for strategies that uplift cocoa farmers and ensure the long-term viability of cocoa production. We invite regulators, stakeholders, and partners to join us in this crucial endeavour.
For more information and to exchange expertise, please contact Nicoletta Lumaldo (SWISSCO) or Johan Blockeel (FiBL)
You can also find more resources on living income here:
Living income - Kakaoplattform
Living Income | Living Income Community of Practice (living-income.com)