Your Cocoa Prices Are Still High, So What Now For Our Farmers?

For cocoa farmers, their primary concern isn’t market volatility but the price they receive for their harvest. It’s as simple as money in hand, now. Emotions tied to cocoa beans are not based upon dreams of chocolate, but tied to the immediate practicality of earning enough to live. The money they earn is to put food on the table each day and ensure a roof over their heads.

The prevailing narrative of bean-to-bar craftsmanship often obscures the harsh realities faced by cocoa farmers. While specialty chocolate makers may have been willing to pay premium prices, the burning question remains: will this trend continue as cocoa prices soar? The truth is, for farmers, the daily grind remains unchanged. Their focus is on producing the best yield possible to sustain their families, not on the fluctuations of the market.

While market speculators reap profits from cocoa price hikes, farmers bear the brunt of inflationary pressures in their everyday lives. The recent surge in cocoa prices may seem like a blessing, but the organic premiums they receive are the true benefit to their hard work and dedication to quality. Moreover, rampant inflation has increased the costs of all inputs and transport, adding to the financial strain on farmers. “The price increment is good, but I would wish more increment will be done,” said Abdullai Salifu, a cocoa and rice farmer. Premiums help him maintain his farm properly to achieve his maximum yield. It’s the sweetest fruit of their labour, a reward for their commitment to sustainable farming practices and exceptional production amidst challenging conditions.

The price of cocoa has risen partly due to a shortage, which presumably means farmers have less cocoa to sell, so they are working with less in a situation presenting higher prices. Additionally, speculators—who never use the cocoa themselves—drive the prices higher through their buying and selling activities solely to make money. This speculation exacerbates the market’s volatility and further disconnects the financial gains from the realities faced by the farmers.

The real lifeline for farmers like Abdullai lies in the premiums they receive for organic-certified cocoa. These premiums provide a more stable and higher income, insulating farmers from the market’s erratic fluctuations. Organic certification ensures that farmers are compensated not just for the quantity of their cocoa but also for the quality and sustainable methods used in its production. This additional income allows farmers to invest in better farming practices, maintain their equipment, and improve their overall yield, thereby ensuring a more reliable and consistent income stream. This stability is crucial for farmers who otherwise face the dual pressures put upon them by market volatility and increasing costs due to inflation.

We have always recognised the importance of supporting sustainable farming practices that prioritise the well-being of farmers and pay premiums. By focusing on initiatives that empower cocoa producers to earn consistently fair wages and improve their livelihoods, Three Mountains Cocoa invests in cocoa and the people who cultivate it.

As consumers, it’s imperative to acknowledge the human cost behind every metric ton and every bar of chocolate. Only by supporting initiatives that prioritise fair compensation and sustainable practices like organic certifications, can we ensure a sweeter future for all involved in the cocoa supply chain.
The solution lies in a commitment to stable minimum prices for cocoa farmers and long-term contracts, as highlighted in a recent article written by The Guardian. This approach not only lifts growers out of poverty but also addresses other pressing issues such as child labour and deforestation, which are driving EU policy. Sustainable, ethical and organic production is essential for the long-term benefits of consumers and the cocoa industry as a whole. Giving the free market free rein cannot achieve these vital objectives.