At TrustAfrica, we’ve taken significant strides to elevate the conversation around cocoa
pricing and its impact on inclusive price setting and fair value distribution. At TrustAfrica.
Recognizing the crucial role that cocoa production plays in the economies of Côte d’Ivoire,
Ghana, and Sierra Leone, as well as its profound influence on the livelihoods of millions of
farmers, we commissioned a comprehensive study to evaluate the existing pricing
mechanisms and the true cost of cocoa production.
The urgency of this study is particularly evident in Côte d’Ivoire and Ghana, which together
account for over 60% of the world’s cocoa supply. Despite this dominant position in the
global market, many cocoa farmers in these regions continue to live below the poverty line,
grappling with rising production costs and volatile market prices. The economic pressures are
exacerbated by soaring inflation, further eroding the already fragile incomes of these farmers.
This context highlights the importance of our research, which aims to shed light on the
disparities within the cocoa value chain.
Our study offers a thorough analysis of cocoa pricing policies, production costs, and their
direct impact on farmer livelihoods. Insights from the recent World Cocoa Conference have
also stressed the necessity of understanding the true cost of cocoa production, reinforcing the
value of empirical evidence in driving our advocacy efforts. This research not only serves as
a knowledge product but also sparks essential dialogue on revisiting and reforming cocoa
pricing mechanisms to ensure they are fair and sustainable.
A critical component of effective advocacy is not just conducting research but ensuring that
the findings are widely disseminated, creating awareness and sparking the necessary
conversations that lead to tangible change. By sharing insights and making research
accessible, we can build strong coalitions, generate widespread interest, and ultimately drive
the reforms needed to achieve fair value distribution in the cocoa industry. To ensure our
research on cocoa pricing mechanisms and production costs sparks the essential dialogue, we
have actively engaged in several initiatives to disseminate our findings and foster
collaboration. In Ghana, we partnered with the Ghana Civil-Society Cocoa Platform (GCCP)
to develop a position paper that outlines proposals aimed at influencing this season’s cocoa
pricing. This strategic collaboration allows us to channel our research into actionable
recommendations that can directly impact policy decisions.
Meanwhile, in Côte d’Ivoire, our collaboration with the Sustainable Cocoa Platform and other
key stakeholders has focused on advocating for fairer prices and more sustainable practices.
The dialogue in Côte d’Ivoire culminated in a declaration, endorsed by all stakeholders
present, which has been submitted to the civil society organization (CSO)platform, the
Coffee-Cocoa Council (CCC), and the media. This declaration serves as a unified call to
action, emphasizing the need for immediate reforms in the cocoa pricing structure. At the
regional level, we have engaged with the CSO Cocoa Platform, which brings together
members from Ghana, Côte d’Ivoire, and other cocoa-producing countries, to disseminate our
research findings on the true costs of cocoa production. This dialogue, attended by 56
participants, validated our findings and highlighted the importance of incorporating external
factors, such as market fluctuations and environmental conditions, into the pricing
mechanisms. These discussions were further enriched by updates from COCOBOD on the
European Union Deforestation Regulation (EUDR) and the African Regional Standards (ARS), highlighting the interconnectedness of global and regional issues in shaping the cocoa
industry.
We have shed light on how production costs factor into cocoa pricing mechanisms in Ghana through our ongoing efforts to provide critical evidence to key stakeholders in the cocoa sector. In collaboration with our partner, ECOCARE, we presented our findings and recommendations from the regional study on the cost of cocoa production during the Annual General Meeting of the Ghana Civil-Society Cocoa Platform (GCCP) in May 2024. This platform allowed us to engage directly with COCOBOD and other GCCP members, highlighting the need for a more equitable pricing system that accurately reflects the true cost of production.
Through these efforts, we are not only raising awareness but also building momentum for
change, ensuring that our research serves as a catalyst for fair value distribution in the global
cocoa market. By continuing to share knowledge and foster collaboration, we are helping to
create a more just and sustainable future for cocoa farmers and the industry at large.
