Can you give me an example of what happens to the premiums the producers receive?
Fairtrade & Sustainability - Day Chocolate Company case study
Fair trade means that cocoa farmers like my father get more for their cocoa and their hard work. That way we can have a better future and grow.
Victor Owusu, son of a Kuapa Kokoo farmer
The cocoa beans for Divine and Dubble chocolate bars come from Kuapa Kokoo, a co-operative of 40,000 growers in Ghana. The Day Chocolate Company pays a guaranteed Fairtrade price of $1600 USD per tonne of cocoa beans plus an extra social premium payment of $150 USD per tonne. In return, Kuapa Kokoo supply us with the best of the best beans. Kuapa Kokoo's motto is pa pa paa, which means the best of the best in Twi, the local language.
The extra social premium is paid directly to the Kuapa Kokoo Farmers Trust and every year at the AGM farmers vote on how they plan to distribute this fund to community projects. These projects will benefit the whole community. Some examples of projects that the Trust fund has financed include:
- School & community latrine building projects
- Provision of micro-finance to Kuapa income generation projects such as soap making groups, palm oil extraction projects and vegetable growing groups. These projects aim to diversify the income sources for Kuapa farmers and also assist gender development by training and empowering women members.
- Provision of water wells to provide clean water to village communities
In a first for Fairtrade Kuapa Kokoo also own a share of The Day Chocolate Company, makers of Divine and Dubble chocolate bars. For the Kuapa Kokoo having their own chocolate bars is a source of great pride. It is also an eye-opener; after-all most cocoa farmers have never tasted chocolate before. The rewards are vast, including the farmers gaining an inside knowledge of the industry, a proportion of profits and preparation for entry into the free market when external liberalisation is completed.
For the chocolate industry, Kuapa Kokoo and The Day Chocolate Company's market success are evidence that an alternative business model championing transparency and more equal distribution of profit can work.
