Kuapa Kooko pledges to improve farmers’ livelihoods through Living Income Differential payments

Farmer group, Kuapa Kooko, says the era where cocoa farmers continue to earn low incomes despite their major contribution to Ghana’s cocoa sector must be a thing of the past.

Farmers in cocoa growing communities are unable to live their best due to the meager income they derive from their hard work.

Many cocoa farmers continue to receive meager amounts at the farm gate after selling their cocoa beans, and are unable to cater for their families.

The Kuapa Kooko Co-Operative Cocoa Farmers and Marketing Union Limited together with its partners is adopting initiatives to improve livelihoods among cocoa farmers as part of efforts to increase Ghana’s cocoa yield.

Kuapa Kokoo introduced the initiative to additionally pay cocoa farmers a sum of GH₵ 108 per bag of each Fairtrade certified cocoa beans sold to the Kuapa Kooko Limited (KKL) after a study undertaken by Fairtrade in 2018.

The additional income is estimated to be 30 percent of the farm gate price of GH₵ 66 per bag of cocoa beans.

The project, which is being piloted in four of Kuapa Koko’s primary cooperative societies namely; Kasapin, Goaso, Bibiani and Sankore for four years, is currently in its third-year of implementation.

A cocoa farmer from the Goaso Society, Kwaku Gyamfi, said the initiative (Living Income) has been beneficial to farmers like him since he has been able to use the amount he received to improve his farm.

He said he has also been able to use the money to pay laborers who worked on his farm and has used part of it to pay for the school fees of his children.

“The Kuapa Kooko and its partners introduced the initiative to help us the farmers, improve our yields and also enhance our livelihoods.”

Another farmer, Joseph Atta Nimoh, who expressed satisfaction about the initiative indicated that it has come as a surprise to his fellow farmers in Goaso and other areas.

He said there has been a huge difference in their operations since the payment of the Living Income began in these areas.

“The changes we are currently seeing is that, we have a zone at Kokoum Anwiam, cocoa farmers there were not able to harvest cocoa, but since the intervention, they have been able to improve their yields and it is massive.”

The Acting Executive Secretary of Kuapa Kokoo Cooperative Cocoa Farmers and Marketing Union Limited (KKFU), Nelson Adubofour, indicated that his outfit is prioritizing the implementation of the Living Income Differentials to ensure farmers have a dignified life.

“I want to see farmers smiling all through and having a very decent life. The farmer should live a fulfilled life so that we are able to debunk the perception that farming is for the poor. It is the other way round in European countries so why can’t we bring that here because they are the ones that suffer the most and they should be the ones that enjoy the most.”

So far, over 300 cocoa farmers are taking part in the dynamic agroforestry project with Kuapa Kokoo working to ensure that the project is expanded to cover all its 57 primary cooperative societies in future.

The initiative, informed by a study undertaken by Fairtrade in 2018, has enabled Kuapa Kokoo to additionally pay cocoa farmers a substantial sum of GH₵ 108 per a bag of each Fairtrade certified cocoa beans sold to KKL.

This additional income is estimated to be 16.4 per cent of the farm gate price of GH₵ 66 per bag of cocoa beans.

The Head of Region, Fairtrade West Africa, Edward Akapire, explained that with the Living Income, they moved beyond the normal price and looked at the price at which a cocoa farmer should be paid to be able to secure a dignified life for themselves0 and their families.

He added that what the farmers received as Living Income bonus within the pilot, is the difference between the Living Income Price and the farm gate price which currently constitutes about 30 percent of the farm gate price.

Mr. Akapire indicated that “What we are seeking to achieve is to secure dignified livelihoods for farmers. Our global vision is that all farmers, all producers should be able to secure for themselves a dignified livelihood and be able to advance their own course. So a key component of it is the dignified livelihood and we believe that cocoa farmers at the current market and farm gate prices are not able to secure for themselves that dignified livelihood which is why we have adopted this Living Income strategy.”

He said farmers in the beneficiary communities are happy about the initiative and Kuapa Kooko and Fairtrade will ensure that the initiative is sustained to benefit more farmers.

So far, GH₵ 70,000 has been paid to beneficiary farmers in four Kuapa Kooko Societies.

The premium to farmers being cash bonus and society development funds to farmers from Kuapa Kooko is about GH₵ 9 million.