Côte d’Ivoire-Ghana Cocoa Initiative Reaffirm Commitment to Sustainable Cocoa Farming and Farmer Livelihoods
Côte d’Ivoire and Ghana, the world’s leading cocoa producers, have reaffirmed their commitment to improving the livelihoods of cocoa farmers and fostering a sustainable cocoa economy through the Côte d’Ivoire-Ghana Cocoa Initiative (CIGCI).
The latest announcement, following an increase in cocoa producer prices by both countries, marks a significant step towards addressing long-standing market inefficiencies that have left farmers earning below their production costs.
In a joint statement released on October 2, the CIGCI emphasized that the initiative, established in 2019, seeks to counter the volatility of the global cocoa market. Prices have historically fluctuated below the cost of production, prompting the two countries to collaborate in stabilizing the sector and ensuring that farmers earn a living income.
The initiative, supported by Ivorian President Alassane Ouattara and Ghana’s President Nana Akufo-Addo, aims to give cocoa producers a stronger voice on the global stage and ensure better policy coordination.
Central to these efforts is the Living Income Differential (LID), introduced by Côte d’Ivoire and Ghana to guarantee a premium for cocoa, improving farmers’ earnings. The LID has been a key lever in advocating for higher prices, with the CIGCI noting that the conversation around cocoa pricing has shifted from being a “taboo” subject to a central theme in global discussions about the sustainability of the commodity.
“Today, the notion that fair pricing is integral to sustainability has gained broad recognition. However, much work remains to ensure cocoa is sustainable across all dimensions, particularly the prices paid to farmers,” the statement noted, in the context of International Cocoa Day 2024.
The cocoa sector faces multiple challenges, including ageing plantations, disease outbreaks such as the Cocoa Swollen Shoot Virus, and increasing cross-border smuggling. These supply-side risks are compounded by growing demand-side pressures for more stringent regulation of sustainable production in global supply chains.
In response, Côte d’Ivoire and Ghana are implementing national traceability systems and working towards the African Regional Standard for Sustainable and Traceable Cocoa to ensure compliance with sustainability criteria.
Both countries are also taking joint actions to tackle smuggling and align cocoa pricing and sales systems. “Delivering sustainable cocoa and ensuring a living income to farmers, regardless of market price fluctuations, remains our horizon,” the CIGCI stated.
Cocoa is a key export for both Côte d’Ivoire and Ghana, contributing significantly to their economies. Yet, the disparity between the global value of the cocoa supply chain and the incomes of farmers has long been a source of tension.
According to industry estimates, farmers in both countries have typically received less than 6% of the retail price of chocolate products, a gap that the CIGCI’s interventions aim to reduce.
As the CIGCI continues to advocate for cocoa producers, it has set its sights on making cocoa the world’s first fully sustainable commodity, an aspiration that hinges on the support of global stakeholders.
Both countries believe that through coordinated efforts and improved transparency in the sector, the livelihoods of cocoa farmers can be transformed, ensuring the long-term sustainability of the cocoa economy.
