Sales of Fairtrade certified cocoa in Côte d'Ivoire in the fourth quarter of 2019 increased farmers' incomes by approximately USD 15.1 million (€13.8 million) compared to non-Fairtrade cocoa, according to preliminary figures released by the international fair trade organization.

These higher profits are due to the difference between the guaranteed Fairtrade minimum price and the current cocoa price set by the Ivorian government. The Organization has increased its minimum price and premium for cocoa by 20% to $2,400 per FOB tonne (export point), effective October 1, 2019. This means that Fairtrade certified cooperatives in Côte d'Ivoire currently receive nearly $236 more per ton in addition to the FOB price set by the government, the document says.

More than 140 Ivorian cocoa cooperatives sold about 64,000 tons on fair trade terms from October to December 2019, according to reports from local exporters available. Cooperatives now distribute profits, including the full amount of the difference between Fairtrade and government prices, to their members, as required by Fairtrade standards. This effectively increases the field price that Fairtrade producers receive, by 17%.

Payments to cooperatives and producers are controlled by the independent certification body FLOCERT.

"I'm very happy," said Ettien N'Guessan, a cocoa farmer for more than 40 years. "I can provide for my children." It also plans to invest in some agricultural improvements.

"Cocoa farmers deserve to make a decent living like everyone else," said Fairtrade Africa Regional Head of Cocoa for West Africa, Anne Marie Yao. "The extra funds that go into the pockets of these farmers are the tangible result of choosing Fairtrade chocolatiers. And that makes a big difference," she said.

In addition to the Fairtrade minimum price, certified cooperatives also receive the non-negotiable Fairtrade premium of $240 per tonne. The Fairtrade premium earned on sales in the fourth quarter of 2019 is estimated at more than $15.3 million.

About two-thirds of the world's cocoa is grown by smallholder farmers in Côte d'Ivoire and Ghana. More than 190,000 Ivorian cocoa farmers are members of Fairtrade certified cooperatives.

The Ivorian and Ghanaian governments through the Coffee and Cocoa Council and Cocobod announced last year their own mandatory Decent Income Differential (DRD/LID) of $400 per tonne to ensure that all cocoa farmers receive a higher minimum farm price. This is expected to take effect in October 2020.

At the same time, the international organization is working with chocolatiers and retailers to test various interventions that impact prices, income diversification and other elements of a holistic strategy to enable cocoa farmers to earn a decent income, explains the document.

"The additional money that farmers receive as a result of the Fairtrade Minimum Price is a step in the right direction, as is the government's Decent Income Differential for all cocoa farmers from October 2020," said the Senior Cocoa Advisor on behalf of Fairtrade International, Jon Walker.

"However, many cocoa farming households will still not earn decent incomes, even with these higher prices. That's why Fairtrade works with cooperatives, their trading partners and governments to test the factors that enable producers to truly earn a decent income. This includes price but also income diversification and profitability, for example. It is essential that the players in the chocolate industry continue to strengthen their commitments, as this is the only way for producers to really see a lasting impact," he said.