Each year, Tony’s calculates and pays the additional premium that enables cocoa farmers to earn a living income. Paying a higher price is part of our 5 sourcing principles: traceable beans, a higher price, strong farmers, the long term and productivity & diversification. To strengthen farmer organizations, we invest additionally in the capacity of cooperatives.
For cocoa season 19/20 the premiums are calculated as follows:
|
Ivory Coast |
Ghana |
Farmgate price |
$1375 |
$1525 |
Fairtrade minimum price differential |
$235 |
(tbd) |
Fairtrade premium |
$240 |
$240 |
Additional premium |
$350 |
$335* |
*Including Fairtrade minimum price differential
Footnotes
[1] Based on best practice use of inputs and living wage for hired labor (see appendix)
[2] In Ghana the viable farm size is much larger than actual farmsize. Therefore we use a reduced farmsize.
[3] Assessing Living Income from cocoa, New Foresight, 2017
[4] Based on actual farm diversification, e.g. demystifying cocoa (KIT)
[5] For Ghana, Fairtrade calculates the same Living Income Reference Price, based on slightly different parameters. For more background on the model please visit this page.
[6] Average from various sources (see appendix)