Living Income Afternoon: Turning Price Surges into Real Gains for Cocoa Farmers

Aligning Actions on Farmer Income

During Chocoa-Amsterdam Cocoa Week, Fairfood, IDH, and the Living Income Community of Practice (LICoP) joined forces to address a pressing question: How do we move beyond rising cocoa prices to ensure meaningful income gains for farmers?

The Living Income Afternoon convened key players across the cocoa sector—industry leaders, governments, farmer organizations, and civil society—to align on actions that drive value distribution, resilience, and sustainable sourcing. With record-high cocoa prices, the discussion underscored that price alone is not a solution—structural changes in governance, procurement, and supply chain practices are crucial.

You can now read a report for insights from leading voices in the cocoa sector and recommendations for turning commitments into action.

Download the full report

Key Takeaways: Beyond the Conversation

1. Stronger Regulations, Clearer Implementation

The Corporate Sustainability Due Diligence Directive (CSDDD) and EU Deforestation Regulation (EUDR) are reshaping how companies address sustainability. Government representatives from the EU Commission and the Dutch Ministry of Foreign Affairs emphasized the importance of preserving the living income concept within these frameworks. Effective partnerships between industry, governments, and civil society are essential for translating policies into real impact at the farm level.

2. Moving from Price Volatility to Fair Pricing

High cocoa prices in the market don’t always translate into higher farm incomes. Experts, including speakers from ABOCFA, Uncommon Cacao, and Rikolto, highlighted the need to shift away from commodity-based pricing models to farmer-forward pricing, where farmers set prices based on production costs. Ensuring a more equitable distribution of value will be key to the long-term viability of cocoa farming.

3. Climate Resilience and Diversification are Business Imperatives

Cocoa-growing regions are facing climate risks, land degradation, and declining productivity. Panelists from Beyond Beans, Solidaridad, and the Produce Monitoring Board of Sierra Leone stressed that agroforestry, soil conservation, and financial incentives must be central to sustainability strategies. Without this, cocoa farming risks becoming economically unsustainable for the next generation.

4. Governance Must Be Part of the Living Income Solution

Governance and public policy are often overlooked but crucial factors in securing living incomes. The Voice Network’s new report on Good Governance for Living Income in Cocoa—launched at Chocoa—outlines how rural development strategies, pricing mechanisms, and supply chain transparency play a critical role in supporting sustainable livelihoods. Read the paper Good Governance for Living Income in Cocoa.

Take the Next Step: Resources & Actions

This discussion doesn’t end here. Explore tools and upcoming opportunities to advance due diligence, fair pricing, and governance for living incomes:

Living Income Due Diligence
On February 27, LICoP and OECD will host a webinar on due diligence—exploring how it can close income gaps and improve livelihoods across supply chains. You can register here, or visit their website to check other events coming.

Living Income Roadmap
IDH has developed a step-by-step plan based on 16 years of research to help companies take structured, ambitious actions to improve farmer incomes. Visit it here.

Supply Chain Benchmarks
The ALIGN platform, co-developed by Fairfood and LICoP, allows businesses to assess wages, incomes, and working conditions in their supply chains while accessing best practices. Explore ALIGN.

[Download the full report] and explore practical solutions for a thriving cocoa sector.

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