You are currently on the Living Income Model page.

skip to main content
Menu
Living Income Model. Living Income Model.
read all ’bout it
serious statements
our promise

The Living Income Model sets the Living Income Reference Price (LIRP) for cocoa in Ghana & Côte d’Ivoire.

The systemic underpayment of cocoa farmers is exploitation, causing a domino effect that leads to poverty, which forces farmers to turn to other forms of exploitation: poverty, child labor and deforestation.

Fairtrade and Tony’s Chocolonely share their vision on living income and use the same model for calculating the cocoa price that enables cocoa farmers to earn a living income. The Living Income Model, developed by Fairtrade, calculates the LIRP. The model reflects a holistic view where productivity increases, income diversification and paying a price that enables a living income are all needed to get farmers to a living income. We call upon all chocolate companies to make paying at least a LIRP the norm.

The living income model has a holistic view where increased productivity, income diversification and paying a LIRP are needed to get farmers to a living income. This is a shared responsibility from the cocoa market players, cooperatives and farmers.

(see: Fairtrade Living Income Reference Prices for cocoa)

Our Living Income Model calculates the Living Income Reference Price for cocoa in Ghana and Côte d’Ivoire. In 2024/25, the LIRP was set at €2,200 in Côte d’Ivoire for both the main and mid crop and €1,899.34 for the main crop in Ghana.

Chart to illustrate Living income reference price in Cote d'Ivoire and Ghana.
Illustration to represent how the living income model is calculated. Illustration to represent how the living income model is calculated.

Break It Down Now

Costs of Living

The costs of living are taken from the living income benchmarks for Ghana and Cote d’Ivoire as set by the living income community of practice (LICOP) which is supported by GIZ/ ISEAL alliance and Sustainable Foodlab. In other words, a pretty respectable source of info.

Costs of Farming

The costs of farming are calculated from local costs for inputs and hired labor (beyond household labor) and fixed costs for materials and logistics.

Productive Farm Size

The productive farm size is based on a viable farm size that can absorb the available family labor, taking into account reductions for cocoa rejuvenation to be fair. The calculation of required labor per hectare is based on a study from New Foresight.

Achievable Yield

The realistically achievable yield is set based on use of resources and good agronomical practices.

Other Income

Other income generated by the farming household through food production, sales of other crops and services is set at 25% of the cost of living

Each year, Tony’s calculates and pays the additional premium that enables cocoa farmers to earn a living income. Paying a higher price (that enables cocoa farmers to earn a living income) is part of Tony’s Sourcing Principles. In 2024/25, Tony’s Chocolonely paid €3,757,268 in premiums to farmers, as part of the €7,033,727 total premiums paid by Tony’s Open Chain during the same period. Since the start of our mission, Tony’s Chocolonely has cumulatively paid over €39 million in premiums on top of the farmgate price, helping to close the gap towards a living income for cocoa farmers.

For cocoa season 2024/25, the price we paid cocoa farmers was set up as follows:

Chart showing how the living income reference price is calculated in Cote d'Ivoire and Ghana. Chart showing how the living income reference price is calculated in Cote d'Ivoire and Ghana.
all news