Fairtrade – The Household Income of Cocoa Farmers in Côte d’Ivoire and Strategies for Improvement
Client
Fairtrade is an independent non-profit organisation representing about two million farmers and workers worldwide. It owns the FAIRTRADE Mark, a registered trademark appearing on more than 30,000 products, which is the most recognised and trusted sustainability label in the world. Fairtrade International and its member organisations collaborate with businesses, engage shoppers, activate civil society, and enable producers to take control in order to bring about a fair, sustainable future — a future rooted in social justice.
Project description
This study builds on previous studies conducted in 2017 and 2020 and offers a comprehensive view of farmer incomes over time. Based on data collected over the 2023/2024 harvests. Consists of various analyses:
• Comparison between farmer income and living income gap in 2024 and 2020, to see how farmer income has changed over time.
• Price scenario analysis: to assess how increased farm-gate prices in the past year affect farmer household income.
• Assessment of Fairtrade Price Mechanisms: analysis of Fairtrade Minimum Price and Living Income Reference Price to see how they contribute to farmer household income.
• Sharecropper analysis: analysis of the income of sharecroppers, who are stakeholders often overlooked in cocoa analysis. This study is one of the first to collect insights on this group of farmers in line with the updated requirements of Fairtrade*.
The study uses the same methods as laid out in the Cocoa Household Income Study (CHIS) Program methodology.
*In December 2022, Fairtrade published a new Cocoa Standard containing additional requirements that support greater visibility of and benefits for sharecropper and caretaker farmers. The first of these requirements came into effect in January 2024, and subsequent requirements will become active in July 2025.
Benefits to the client
• By comparing data from 2020 and 2024, the study provides a time-based view of how smallholder cocoa farmer incomes have evolved. This helps the client evaluate the effectiveness of past interventions and broader sectoral developments.
• Through the price scenario analysis, the client gains valuable insights into how recent adjustments in farm-gate prices could influence farmer household incomes. This supports decision-making regarding pricing policies or advocacy positions.
• For the first time, the study includes data on sharecropper households, an often-overlooked group. This enables the client to identify specific vulnerabilities and design more inclusive interventions and pricing strategies.
On a broader level, it can help Fairtrade in developing its long-term strategy for reducing poverty and promoting living incomes amongst smallholder cocoa farmers.
