New partnership aims to boost incomes for 100,000 Ivorian cocoa farmers
Abidjan, Ivory Coast, July 28, 2022 /PRNewswire/ — IDH – The Sustainable Trade Initiative and the Coffee-Cocoa Council launched Cocoaperation. Through this new partnership, they support the transition from cocoa farming to a viable commercial activity for the greatest number of cocoa families in Côte d’Ivoire. As the world’s largest cocoa producer, Côte d’Ivoire has nearly one million small cocoa producers; a quarter of the Ivorian population depends directly or indirectly on cocoa for their subsistence and income. Surprisingly, only about eight percent of cocoa farmers earn a living income. Within Cocooperation, IDH and the Council will mobilize cocoa traders, chocolate manufacturers and financial institutions to cooperate and align their activities. By working together, cocoa farmers are able to transition to more profitable and resilient agricultural activities.
Cocoaperation is part of the IDH roadmap for a living income and will connect cocoa farmers and their cooperatives to financial institutions, cocoa traders and other partners in the cocoa value chain. IDH and the Coffee-Cocoa Council aspire to increase the incomes of at least 100,000 cocoa farmers by the end of 2025. They do this by promoting investment in cocoa plantations to transform them into more agricultural enterprises. profitable and resilient. The provision of credit and other financial services must be aligned with good input supplies, advice to farmers and access to reliable markets. Cooperatives have an important role to play as service providers to their farmers and, where appropriate, Cocoaperation partners will support their development.
The Council and the IDH will co-chair a Cocooperation platform of actors in the cocoa sector. In addition, IDH’s EUR 2.5 million co-funding for innovation and scaling up will facilitate sustainable improvements in cocoa farming. In addition, the IDH Farmfit Fund will help credit organizations in Côte d’Ivoire reduce the risks or costs of extending credit to the cocoa sector. “IDH aims to contribute to a living income for small producers,” says Daan Wensing, CEO of IDH. “We intend to facilitate private sector investment and build support for more profitable and resilient cocoa farming systems. This might not lead to a living income for everything cocoa-growing households in the next two to three years, but for the targeted group, this will be the way forward to close the living income gap. »
Closing the Living Income Gap
With the help of Cocoaperation, at least 100,000 cocoa farming households in different producing regions of the country are expected to have reduced the average living income gap from more than fifty percent to less than thirty percent by the end of 2025. “We want to help cocoa farmers make their farms sustainable so that they can continue to work independently. Therefore, we not only offer a new perspective to cocoa farmers, but also bring value to the entire cocoa supply chain in Côte d’Ivoire,” explains Ms. Mbengone Ayivi, Senior Program Manager of Cocooperation.
The international alliance to increase income is a way to make cocoa farmers stronger. This involves offering technical assistance, investments in the sustainable improvement of cocoa plantations and providing farmers and cooperatives with better market conditions. Also, mutual sharing of data will contribute to the goal. Mbengone Ayivi: “Collaboration is essential to the success of our mission. Now that we have joined forces, I am convinced that we can achieve our ambition of providing 100,000 Ivorian cocoa farming families with more decent incomes. By combining knowledge, know-how, technology and better access to credit, we seek sustainable solutions. Together, we aim to create the conditions for cocoa farmers to expand their farming business and earn more money.
About IDH – The Sustainable Trade Initiative
IDH puts people, planet and progress at the heart of trade by harnessing the power of markets to create better jobs, better incomes, a better environment and gender equality for all. To catalyze large-scale change, IDH innovates, brings together and invests in inclusive and sustainable solutions that enable companies to create value for people and the planet, while improving their own performance. To create the greatest impact in the shortest possible time, IDH focuses on empowering the people within businesses, farmer organizations, the global financial sector and governments who have the most influence on supply chains. value.
Based at the Netherlands, IDH has approximately 300 employees worldwide, operating in 20 landscapes and 12 raw materials and supply regions with more than 1,000 public and private partners. In 13 years of activity, IDH has generated more than 390 million in private sector investments and support for new business models that create better jobs, better incomes, a better environment and gender equality for all.
IDH’s work is made possible through the funding and trust of a variety of public and private donors, including the governments of Netherlands, Denmarkand Swiss private foundations. For more information visit: https://www.idhsustainabletrade.com/
About IDH Farmfit Fund
The IDH Farmfit Fund is the world’s largest public-private impact fund for smallholder farmers. Its innovative structure de-risks smallholder farming investments and helps generate lasting impact by reducing risks and costs for farmers and investors. The Fund is supported by a unique coalition of partners, including commercial banks, development banks, government agencies and value chain companies. Starting with 100 million eurosthe Fund should raise billions of euros to deal with the $170 billion financing gap in financing small farms. For more information visit: https://www.idhsustainabletrade.com/farmfit-fund/