Sales of Fairtrade certified cocoa in Côte d'Ivoire in the fourth quarter of 2019 increased farmers' incomes by around 15.1 million USD (13.8 million euros) compared to non-Fairtrade cocoa, according to preliminary figures published by the international organization committed to fair trade.

These higher profits are due to the difference between the guaranteed Fairtrade minimum price and the current cocoa price set by the Ivorian government. The Organization increased its minimum price and premium for cocoa by 20% to $2,400 per ton FOB (export point), effective October 1, 2019. This means that Fairtrade certified cooperatives in Côte d'Ivoire currently receive nearly $236 more per ton on top of the FOB price set by the government, the document states.

More than 140 Ivorian cocoa cooperatives sold around 64,000 tons under fair trade conditions from October to December 2019, according to reports from local exporters available. Cooperatives now distribute profits, including the total amount of the difference between Fairtrade and government prices, to their members, as required by Fairtrade standards. This effectively increases the on-field price that Fairtrade producers receive, by 17%.

Payments to cooperatives and producers are controlled by the independent certification body FLOCERT.

“I am very happy,” said Ettien N'Guessan, who has been a cocoa farmer for over 40 years. “I can provide for my children.” It also plans to invest in some agricultural improvements.

“Cocoa farmers deserve to earn a decent living like everyone else,” said the regional cocoa manager for West Africa for Fairtrade Africa, Anne Marie Yao. “The additional funds that go into the pockets of these producers are the tangible result of choosing Fairtrade chocolate makers. And that makes a big difference,” she said.

In addition to the Fairtrade minimum price, certified cooperatives also receive the non-negotiable Fairtrade premium of $240 per ton. The Fairtrade premium earned on sales in the fourth quarter of 2019 is estimated at over $15.3 million.

Around two-thirds of the world's cocoa is grown by smallholder farmers in Côte d'Ivoire and Ghana. More than 190,000 Ivorian cocoa farmers are members of Fairtrade certified cooperatives.

The Ivorian and Ghanaian governments through the Coffee and Cocoa Council and Cocobod announced their own mandatory Decent Income Differential (DRD/LID) of $400 per ton last year to ensure that all cocoa farmers receive a higher minimum farm price. This should take effect in October 2020.

At the same time, the international organization is working with chocolate makers and retailers to test various interventions that impact prices, income diversification, and other elements of a holistic strategy to enable cocoa farmers to earn a decent income, the document explains.

“The extra money farmers are receiving as a result of the Fairtrade Minimum Price is a step in the right direction, as is the government's Decent Income Differential for all cocoa farmers from October 2020,” said Jon Walker, senior cocoa advisor for Fairtrade International.

“However, many cocoa farming households will still not earn decent incomes, even with these higher prices, which is why Fairtrade is working with cooperatives, their business partners, and governments to test the factors that allow farmers to actually get a decent income. This includes price but also income diversification and profitability, for example. It is essential that chocolate industry players continue to strengthen their commitments, as this is the only way for producers to really see a sustainable impact,” he said.