Living income
A living income is a fundamental human right and a cornerstone of a sustainable cocoa sector. It represents the minimum net annual income a household needs to afford a decent standard of living in a given region. This includes essential needs such as food, water, housing, education, healthcare, transportation, clothing, and a buffer for unforeseen expenses.
The Reality for Cocoa Farmers
Despite their hard work, most cocoa farmers—particularly in West Africa—live in poverty and earn far below a living income. This financial insecurity forces them to make difficult choices, such as cutting down rainforests to expand their plantations simply to put food on the table. Without guaranteeing a living income, sustainability in the cocoa sector remains an unattainable goal.
Why a Living Income Matters
Providing farmers with a living income is not just an ethical responsibility; it is a necessity for tackling other critical issues in the cocoa supply chain. Problems such as deforestation and child labor are directly linked to farmer poverty. When farmers struggle to meet their basic needs, they are forced into practices that harm both the environment and their communities. A secure income creates opportunities for sustainable farming methods and eliminates the economic pressures that contribute to exploitative labor practices.
How is a Living Income Calculated?
Determining a living income requires a thorough analysis of the cost of living in specific regions. This includes assessing expenses for essential needs and establishing the income necessary to cover them. The Living Income Community of Practice defines a living income as:
“The net annual income a household in a particular location requires to afford a decent standard of living for all its members.”
Steps to Achieving a Living Income for Cocoa Farmers
Achieving a living income for cocoa farmers involves action is necessary on three separate dimensions at the same time: good agricultural practices, good governance policies, and good purchasing practices. However, not all three dimensions have an equal status. Good agricultural practices are only a worthwhile strategy if cocoa is sufficiently remunerative. This requires both good purchasing practices as well as good governance.
Good Purchasing Practices
One of the most critical steps is ensuring that farmers receive a fair price for their cocoa beans. The current market prices often fail to cover the actual cost of sustainable production and a decent livelihood. Revising these prices is essential for long-term industry stability. We have a written a lot about this issue of good purchasing practices, including in the Living Income Compendium (2022) and our Good Purchasing Practices (2023) paper.
Good Governance
Government policies help address the root causes of poverty, and governance is also a key driver in enabling long term effectiveness of sustainability interventions. The key elements of Good Governance for a Living Income include rural development strategies, infrastructure, transparency & accountability, rule of law, and supply management. More on this can be found in our paper on Good Governance for Living Income in Cocoa (2025).
Good Agricultural Practices
Farmers need support in improving their productivity and diversifying their sources of income.
Government and Industry Collaboration
Sustainable change requires collaboration between multiple stakeholders, including businesses, governments, NGOs, and farmers. By working together, these groups can create policies and initiatives that ensure a living income becomes the industry standard. Programs such as the Living Income Community of Practice facilitate knowledge-sharing and promote best practices across the sector.
Progress and Challenges
There have been some promising developments in the push for living income. Fifteen years ago, the possible interventions on farmer income were meagre. Some agronomists had started to push for productivity improvements at farm level, and certification was seen as a panacea that could solve most of the farmer’s problems. With those two arrows – agronomy and certification – the quiver was complete.
Fast forward to 2025, and the tools available to the sector have increased dramatically. Even within the agronomic approaches, so many more interventions are at hand.
In fact, in the living income space, it would be fair to say that the cocoa sector is one of the most developed sectors globally, leading the way in many instances.
The Role of VOICE Network
At VOICE Network, we remain committed to acting as a watchdog and a catalyst for reform in the cocoa sector. Our focus is on addressing blind spots and underrepresented issues within the supply chain, particularly advocating for a living income for all stakeholders.
Our vision is a sustainable cocoa sector where all actors earn a decent living under fair labor conditions, where human rights—especially children’s rights—are upheld, and where the environment thrives.
The Path Forward
The road to securing a living income for cocoa farmers is challenging and requires sustained commitment. However, by working together and maintaining pressure on industry stakeholders, we can create a future where cocoa farmers not only survive but prosper—ensuring that sustainability in the sector is more than just a promise, but a reality.
The road on living income is still long, and the challenges ahead are significant – and often ideological in nature. However, from its very crude first steps more than a decade ago, cocoa has come a long way in developing its thinking and actions.
