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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.

An infographic titled 'LIVING INCOME MODEL' on a white background, using blue icons and text to show relationships between household size, cost of living, cost of farming, productive farm size, farmgate price, fairtrade premiums, and other income.

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.