Comparative study on the distribution of value in European chocolate chains

Comparative study on the distribution of value in European chocolate chains

The low level of income of most small cocoa farmers, especially in Western Africa, has been a growing issue in the cocoa sector for the past three decades, furthermore, ensuring a living income for small cocoa farmers has become a pressing issue across producing countries.

This has gained even more publicity as both the Ivorian and the Ghanaian public authorities have decided, in consultation with the industry, to set a fixed “living income differential” (LID) of USD 400 per tonne on all cocoa contracts sold by either country for the 2020/21 season; funds raised through this LID will be used to help increase payments to farmers.

This has triggered critical questions such as:
• What would be the additional costs along the chain?
• What would be the impact on the profitability of business actors?
• What are possible scenarios to distribute additional costs among actors of the cocoa chains?

To date, there have been no in-depth studies on the distribution of value and costs along
cocoa/chocolate chains, which is nonetheless indispensable information to facilitate an informed collective debate on the above-mentioned questions with all stakeholders of the sector and based on objectified data and information.

Area of focus: Cocoa

Organisation/institution: BASIC