What is a cocoa cooperative? A cooperative is an organisation of farmers who have joined forces. A cooperative is an association of people/farmers who unite voluntarily within a democratically controlled framework that all members can participate in. The farmers should feel committed and represented by the co-op . A strong co-op aims to provide open & voluntary membership, have democratic decision-making processes, pool resources (economies of scale), be an autonomous & independent entity, provide training & information to its members, and establish business partnerships & foster community development. In Côte d'Ivoire cooperatives can sell cocoa so there exists a business case and the ability to make money. There are over 1500 registered cooperatives in Côte d’Ivoire. In comparison, in Ghana, cooperatives need to finance themselves fully based on premium payments and do not have the option to legally sell cocoa. Therefore, only around 11% of cocoa households in Ghana with a member of a cooperative, compared to 21-50% in Côte d’Ivoire. What are the key responsibilities of a cooperative? The most frequently mentioned advantages of being a member of a cooperative are better payment terms, such as prompt payments instead of checks, as well as price premium, for example in the context of certification schemes. Additionally, access to inputs, such as fertiliser, planting material, shade trees, and seedlings, can be organised centrally at cooperative level, meaning buying in bulk can bring the price down. Moreover, information is shared communally, and services, such as labour groups can be organised centrally. In a cocoa community, the cooperative has a management and coordination function that enhances inclusiveness and provides farmers with a platform to have their voice heard as they are democratically included in the decision of the premium spending at the Annual General Meeting. Co-ops are the entities to make sure that coherence and fairness is prevalent concerning, for example, provided services like farmer coaching. In the Tony’s Open Chain context, cooperatives are also responsible for providing community development plans, outlining what is needed within their community specifically. They make sure that potentially overlapping initiatives from different actors (for example two different chocolate companies) are merged or aligned. Furthermore, the implementation of the CLMRS is guided the co-ops, and the remediation efforts are under the responsibility of the co-op. What are Good Agricultural Practices? We always seek to balance our social mission with the impact it has on the environment. For example, we are aware that irresponsible use of chemicals is bad for the environment. In the long term, it is also bad for the cocoa farms and the farmers themselves. Our productivity programs focus on soil improvement, pruning techniques and rejuvenating the cocoa farms. We actively promote and support planting of shade trees (e.g. through tree nurseries). We have expanded shade tree nurseries in a move to help farmers introduce an agroforestry-based approach. This combines multiple kinds of crops (like mangos and avocados) for more sustainable farming. Agroforestry also means farmers can diversify their revenue streams, putting a living income more firmly within reach. While good agricultural practices are important, the problems does not lay with the farmers but with the cocoa system which is why improved purchasing practices (the 5 Sourcing Principles) are so important.
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Tony’s Open Chain impact report 2021/22
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