Cocoa productivity In our pursuit of a living income for farmers, it is also important we work together with the partner cooperatives to improve yields within existing farm sizes. To improve productivity, in total 202 farming coaches were paired with farmers at each partner cooperative. The average productivity for each partner cooperative is increasing with each passing year. The partner cooperatives are surpassing the industry average of about 500 kg per hectare, while current average productivity at the long-term partner cooperatives in Côte d’Ivoire is at almost 600 kg/ha. This is a crucial objective as we set a target yield of 800 kg/ha as part of the Living Income Model. To increase productivity, Individual Farm Development Plans (IFDPs) are tailored to each farm. IFDPs often involve introducing new farming practices, such as input support, pruning advice, replanting advice or composting. The data collected during the individual assessments is passed on to the cooperatives to give them insights into the needs of seedlings, fertilizers, shade trees, as well as pruning and replanting needs. The cooperative can then purchase inputs at scale at a cheaper price, improving the cost efficiency of cocoa farming for all cooperative members. Through the assessment data, the co-op can also have a better understanding of the position of each individual farmer and can decide to give out micro loans on pre-financing basis. The formation of labour brigades are also centrally organized and trained by the partner cooperatives, meaning farmers can again benefit from activity taking place in economies of scale. These groups of young adults focus on carrying out specialized labour on cocoa farms, such as high branch pruning (which improves the farms’ condition and productivity). This extra labour support is invaluable to families, who no longer rely on extra labour from children and teenagers. Makeover for the Living Income Model in 22/23 Around the world, people are feeling the strain of increased living costs in different ways. For cocoa farmers, the war in Ukraine has significantly increased the cost of fertilizers. This has direct implications for cocoa farming. To ensure the LIRP for the 22/23 cocoa season adequately reflects this, the cost of farming and cost of living indicators have been adjusted (Fairtrade Living Income Reference Prices for Cocoa, October 2022). All Tony’s Open Chain Mission Allies are now paying the new LIRP for the 22/23 season.
Farmers earning a living income Based on a living income analysis of a representative sample of 500 households across three of our long-term partner cooperatives in Côte d’Ivoire, it is clear that the 5 Sourcing Principles, together with good purchasing practices (including paying a living income reference price), help close living income gaps. Over 1/3 of households (37.6%) are at or over the Living Income benchmark. The average living income gap at Tony’s
Open Chain’s long term partner cooperatives is 9.1%, compared to the industry average of 69% for Côte d’Ivoire. Simulations based on this living income analysis also show a noticeable and substantial change if all cocoa is sold through Tony’s Open Chain. Under the best of circumstances (meaning if all cocoa is sold at the LIRP, all premiums go directly to the farmers, and productivity is at 800 kg/ha), the average living income gap closes completely and over half (52.2%) of the households will be at or over living income. This shows that progress on achieving a living income for cocoa farmers is achieved by paying a higher price for cocoa.
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Tony’s Open Chain impact report 2021/22
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