Living Income
Cocoa farmers not being able to earn a living income leads to poverty, which is the root cause of child labour and illegal labour in cocoa. In order to move out of poverty, it is important cocoa farmers earn a living income. A living income is the net annual income a household needs to afford a decent standard of living for all its members (Living Income Community of Practice). Tony’s Open Chain pays a significantly higher price for cocoa as a means of directly addressing these systemic issues. The Living Income Model The Living Income model calculates the Living Income Reference Price – the price for cocoa that enables farmers to earn a living income. The model has a holistic view where productivity increase, income diversification, and paying a higher price are needed to get farmers to a living income.
Factors of the Living Income Model Côte d’Ivoire
Ghana
Household size
8
6
Cost of living (per person per day) Cost of farming (fixed per hectare) Productivity target (per hectare) Income from other activities (per person per day) Viable farm size
$2.45
$1.96
$563
$462
4.4ha 800kg
2.74ha 800kg
$0.62
$0.54
Find more detailed insights and all relevant footnotes here.
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Tony’s Open Chain impact report 2021/22
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