Living Income model sets ‘living income reference price’ for cocoa in Ghana and Côte d’Ivoire.
Inequality in the cocoa chain and the resulting extreme poverty are the root cause of modern slavery, illegal 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 farmer to earn a living income. Fairtrade and Tony’s Chocolonely have improved existing models, integrate widely accepted benchmarks and research and share their insights with the chocolate industry on the living income reference price for cocoa. We call upon all chocolate companies to make a living income the norm and start using this model. In Ghana a farmer should receive $2,10 per kg cocoa and in Ivory Coast $2,20
The living income model has a holistic view where productivity increase, income diversification, and paying a higher price are needed to get farmers to a living income. This is a shared responsibility from the cocoa market players, cooperatives and farmers.