The average farmer will make between $1,400-$2,000 profit a year, at most about $5 a day, which will need to support 6-10 dependants. So a cocoa farmer and their dependants will be living on between $0.50-$0.84 a day, well below the World Bank’s extreme poverty line of $1.25 a day.
How much are farmers paid for cocoa?
On average, cocoa farmers earn just 6% of the final value of a bar of chocolate.
How much do families on cocoa plantations in Africa earn in one day?
In Western Africa, cocoa is a commodity crop grown primarily for export; 60% of the Ivory Coast’s export revenue comes from its cocoa. As the chocolate industry has grown over the years, so has the demand for cheap cocoa. On average, cocoa farmers earn less than $2 per day, an income below the poverty line.
Why are cocoa farmers poor?
Farmer-centric approach Cocoa farmers’ poverty persists also because of the unequal bargaining power between cocoa farmers, and both large multinational companies and governments.
Is cocoa farming a good business?
But not enough of that money is reaching farmers. A recent survey by Fairtrade International found that the average household income of cocoa farmers in West Africa is $2707/year, which is only about a third of what would be considered a livable income.
How much money do cocoa farmers make a day?
The survey indicated 42% of Fairtrade cocoa farmers lived above the extreme poverty line, which is $1.90 per person per day, and 23% above the poverty line, which is set at $3.10 per person per day. Only 12% of cocoa households earned a living income, it added.
How much money does a cocoa farmer make in Cote d Ivoire?
This is less than half of the World Bank’s extreme poverty line for Côte D’Ivoire ($2.40). Barry Callebaut surveyed more than 700 cocoa growers in the country in 2013-2014 to obtain the results.
Why are there so many cocoa farmers in West Africa?
All of these solutions, industry or government, circle around the same problem: too many people in west Africa rely on the money they earn from cocoa and too few people are willing to pay more to eat chocolate. Too many farmers produce a small amount of cocoa, and too few farmers produce it in market-efficient quantities.
Where does the money go when buying cocoa?
It is hard to assess this though, as Fairtrade, Utz Certified and Rainforest Alliance standards can shape farmer incomes in a variety of ways. For example, the Fairtrade Premium of $200 paid on every tonne of Fairtrade cocoa purchased usually doesn’t go back directly to individual farmers, it is spent by the farmer’s co-operative.
