Empowering cocoa farmers
Premium payments for certified sustainable cocoa are continuing to make a significant contribution to improving the livelihoods of cocoa farmers and their communities, as well as meeting the growing demand for sustainably sourced cocoa and chocolate.
US $19m was paid to farmers in Ivory Coast, Brazil, Cameroon, Ghana and Indonesia during 2014, bringing the total to US $44m paid to date under the Cargill Cocoa Promise. The premiums, which are achieved by farmers for selling their UTZ, Rainforest Alliance and Fairtrade certified cocoa beans, are funded by confectionery and food manufacturers and retailers and are positively supporting the ongoing development of a sustainable cocoa supply chain.
“Premium payments and cocoa certification remain a valuable catalyst in making progress towards a sustainable cocoa supply chain. We are proud to be part of this process and to see the positive developments in the sector. Not only are the cocoa farmers and their communities benefitting from higher incomes and better health and education, at the same time manufacturers, retailers and consumers can be confident about where their cocoa is coming from and how it is being produced,” says Taco Terheijden, director cocoa sustainability at Cargill.
The premium payments are made to certified farmer co-operatives with 50 per cent going directly to individual farmer members, and the remainder being invested in projects by the farmer organisation to boost productivity, farm development and benefit the community. The premiums are an incentive to adopt good agricultural practices and are directly supporting improvements that are making a positive difference to local communities.
Through its on-the-ground network and long-term personal relationships with co-operatives, Cargill is able to track in full detail how these premiums are distributed and how farmer organisations decide to invest their funds. Recent information shows these are being invested in:
strengthening farmer co-operative by providing crop financing, developing buildings, improving logistics, employee health and safety, certification activities
community projects such as schools and education, healthcare and road rehabilitation
farmer services, such farm development, crop protection, fertilizer distribution.
