Rainforest Alliance calls on confectionery sector to drive greater farmer income

Against a backdrop of crisis-hit cocoa markets, the Rainforest Alliance has called on chocolate manufacturers, traders, as well as the retail sector, to help enable greater farmer income, reports Neill Barston.

 As the non-governmental organisation noted, as prices for the critical confectionery crop remain volatile – swinging from near $13,000 a tonne last year to under $3,000 earlier this month, years of progress on the issue is being put at risk with a perceived state of inertia on the topic.

This has most notably been seen in the wake of the latest price crashes seen in the past two months, which prompted government authorities in both Ivory Coast and Ghana, which represent two thirds of the cocoa trade to the confectionery industry to slash farmer pay rates (by 30% in Ghana), and by 60% in neighbouring Ivory Coast.

Consequently, farmers unions in the region have called for the decisions to be examined, with Ghana’s Cocobod governing body reporting that it is actively working on devising new pricing and operating models in a bid to prevent the boom and bust cycle that has played out in the sector.

As reported in the past few weeks by our title, the sector has formed its TogetherCocoa Foundation, including Mars, Nestle, Lindt, Hershey and Mondelez – with key invitations to other major players potentially joining  including Blommer and Cargill. Though its resources have yet to be clarified, it has set out a mission goal of providing greater support to the cocoa sector to ensure its viability at a time of continued stresses on the industry. 

Furthermore, as regards action at origin, in a press release from Cocobod, its chief executive Dr Randy Abbey acknowledged that it was a difficult situation in the decision to cut farmgate prices by 30%, but regarded as necessary for long-term stability in light of major downward price movements on international markets.

Abbey stated: “In taking this decision, we have been guided by the need to strike a careful balance between providing immediate support to our farmers and ensuring that the cocoa industry remains resilient and sustainable over the long term.

However, there remains significant concern regarding reports that Cocobod reportedly owes some $400 million in loans from the past two years – with concerns from sector observers that this sum may potentially be defaulted on, creating a liquidity crisis in the region.

This has played out in recent months, as famers in both Ghana, and Ivory Coast remain unpaid for a period of many months, with uncertainty over whether they will be paid at the agreed previously higher rates set last year, prompting further significant uncertainty for farming communities.

Rainforest Alliance call
For its part, the Rainforest Alliance urged action from major players within the industry to take urgent action in supporting those core communities further in navigating present conditions.

In addition, the organisation also called on sourcing companies to maintain and expand. investment in technical assistance for farmers, with an emphasis on best practice training and access to inputs – especially with the cost and availability of fertilsers remaining a key issue.

Santiago Gowland, CEO of the Rainforest Alliance, highlighted the fact that agricultural workers are facing considerable hardship that threatened the viability of the industry.

He said: “Sustainability cannot be a fair-weather commitment. When prices fall, it is the farmer who absorbs the shock first and most severely. A more resilient cocoa sector depends on business models that continue to support farmer livelihoods when market conditions become most difficult for the people at the base of the supply chain,” 

As the organisation noted, it works with  almost one million cocoa farmers globally, the majority of whom are in West Africa. For these families, cocoa is not just a commodity, it is their primary livelihood. Falling prices can translate directly into skipped meals, missed school, and reduced investment in the sustainable agricultural practices that underpin the long-term viability of the entire supply chain.

In terms of a strategic response, the Rainforest Alliance issued a plea to commercial partners to move beyond spot-market pricing logic and toward long-term purchasing agreements that provide farmers with the income stability they need to invest in their farms, their families, and resilient agricultural practices.

As Confectionery Production has previously reported, there have been examples within the sector of longer-term purchasing agreements being put in place, such as with Tony’s Chocolonely’s approach to cocoa buying, with the company sourcing via Barry Callebaut. Fairtrade has also previously stressed the importance of engaging with long-term sourcing partnerships, rather than short-term contracts pegged to commodities prices.

The issue of supporting cocoa supply chains has proved a prominent subject at our World Confectionery Conference, and will form part of our conversation for our 2026 edition, as the event makes its way to The View, London on 10 September. You can register for the event at our dedicated website.

Nanga Kone, Country Manager for Côte d’Ivoire at the Rainforest Alliance, offered a degree of hope for the sector in West Africa.

“When I visit farming communities here in Côte d’Ivoire, I see farmers doing more and more things right: adopting good agricultural practices, investing in their land, and working to secure a better future for their families. A sharp drop in cocoa prices does not just threaten household income. It puts the resilience of the entire cocoa supply chain at risk. We need a system that works for farming families as well not only when market conditions are favourable, but also when they are most difficult,”