Earn a living? What the Côte d’Ivoire–Ghana cocoa living income differential might deliver on its promise

Boysen, Ole; Ferrari, Emanuele; Nechifor, Victor; Tillie, Pascal

doi:10.1016/j.foodpol.2022.102389

Cited by 10 publications

(6 citation statements)

References 9 publications

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“…The governmental institutions, the Ghana Cocoa Board (COCOBOD) and the Conseil du Café-Cacao (CCC) in Côte d'Ivoire both regulate the cocoa market and prices in their respective countries (Mujica Mota et al, 2019;COCOBOD, 2022). The cocoa farmers in Ghana are not mandated to sell their beans to any entity apart from the Licensed Buying Company (LBC) (Cocoa Marketing Company (GH) LTD, 2022; COCOBOD, 2022), the (Fountain and Huetz-Adams, 2022;Boysen et al, 2023). This is primarily due to the low farm gate prices for cocoa beans (Fountain and Huetz-Adams, 2022;Boysen et al, 2023).…”

Section: The Cocoa Supply Chain In Light Of the Lksgmentioning

confidence: 99%

“…The cocoa farmers in Ghana are not mandated to sell their beans to any entity apart from the Licensed Buying Company (LBC) (Cocoa Marketing Company (GH) LTD, 2022; COCOBOD, 2022), the (Fountain and Huetz-Adams, 2022;Boysen et al, 2023). This is primarily due to the low farm gate prices for cocoa beans (Fountain and Huetz-Adams, 2022;Boysen et al, 2023).…”

Section: The Cocoa Supply Chain In Light Of the Lksgmentioning

confidence: 99%

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Assessing the German Act on Corporate Due Diligence Obligations in Supply Chains: a perspective from the smallholder cocoa farmer

Kraft,

Quayson,

Kellner

2024

Front. Sustain.

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This research examines the potential outputs, outcomes, and impacts of the German Act on Corporate Due Diligence Obligations in Supply Chains (LkSG) on the smallholder cocoa farmers in West Africa. The study primarily relies on a literature review and an impact pathway to conduct a systematic analysis to identify the potential effects of the LkSG on smallholder cocoa farmers. The findings indicate that some, but not all of the risks addressed by the LkSG align with those faced by smallholder cocoa farmers and their families. Additionally, the research also reveals weaknesses, particularly in managing environmental risks, which the LkSG does not adequately cover. Our findings show that in the short- and medium-term, the LkSG has no potential effects on smallholder cocoa farmers. Furthermore, the potential positive impacts of the law on smallholder cocoa farmers will take a long time to realize, as the LkSG considers primarily tier-1 suppliers. Companies in Germany might reassess their supply chains to strive for an LkSG-risk-free supply chain, which could in the long term have sustained impacts on smallholder cocoa farmers. However, we recommend a comprehensive risk analysis of the cocoa supply chain to enhance the human rights of cocoa farmers.

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Section: The Cocoa Supply Chain In Light Of the Lksgmentioning

confidence: 99%

Section: The Cocoa Supply Chain In Light Of the Lksgmentioning

confidence: 99%

Assessing the German Act on Corporate Due Diligence Obligations in Supply Chains: a perspective from the smallholder cocoa farmer

Kraft,

Quayson,

Kellner

2024

Front. Sustain.

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“…First, it is essential to consider the role of price regulations and policies in mitigating price volatility in GCVC when examining the economic and social upgrading of smallholder producers and sharecroppers. In response to price volatility, GCVC has implemented commodity price policies and regulations such as forward sales, price stabilization funds, and living income differentials (LID) introduced by Ghana and Côte d'Ivoire in July 2019 to mitigate intra-and inter-seasonal price risks (Boysen et al 2023;Staritz et al 2022). However, inter-seasonal price volatility remains a challenge due to futures prices that drive seasonal exports and world market prices (Staritz et al 2022).…”

Section: Governance and Upgrading In Gcvcmentioning

confidence: 99%

The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain

Kissi,

Herzig

2024

Agric Econ

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This paper identifies several governance factors that enable economic upgrading and the link between economic and social upgrading /downgrading of smallholders and Abusa sharecroppers in Ghana's cocoa value chain (GCVC). The findings are based on qualitative interviews and focus group discussions with various actors in GCVC. Our findings suggest two types of economic upgrading: process and product upgrading, achieved by smallholder producers and Abusa Sharecroppers in GCVC. While process upgrading is enabled by governance factors such as price stabilization and controlling opportunistic behavior, transparency in the sale of certified beans and premium management is key for product upgrading. Regarding the link between economic and social upgrading, we reveal that process upgrading leads to the same outcome of social upgrading and downgrading for smallholders and Abusa sharecroppers due to governance factors such as production and purchasing policies and lack of resources and capabilities. However, product upgrading links to social upgrading and downgrading for smallholders and Abusa sharecroppers respectively owing to governance factors such as controlling resources and bargaining power. We provide insights into key actors and their interests, drivers of change and effects of incentives that play crucial roles in shaping governance factors that influence economic and social upgrading of smallholders and Abusa sharecroppers in GCVC. In our conclusion, we identify how regulations, institutional support and conflicts of interest are key for enabling upgrading of developing countries’ agricultural value chains.

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“…In 2020, in an effort to combat poverty among cocoa farmers and to increase the farmer's share in the value added of the global chocolate market, the governments of Ghana and Côte d'Ivoire jointly introduced the living income differential (LID). The LID consists of a levy of US$400 to be used to stabilize and sustain farm gate prices in case the international price drops (Boysen et al, 2021). Systems that raise or stabilize farm prices are present in many countries, and can be politically sensitive.…”

Section: Anonymous Spot Market Transactionsmentioning

confidence: 99%

Children’s Work in African Agriculture

2023

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EPDF and EPUB available Open Access under CC-BY-NC-ND licence. This book examines children’s involvement in African agricultural work. It argues that framing all children’s engagement in economic activity as ‘child labour’, with all the associated negative connotations, is problematic. The conceptual and case-based chapters reframe the debate about children’s work and harm in rural Africa with the aim of shifting research, public discourse and policy so that they better serve the interest of rural children and their families.

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Earn a living? What the Côte d’Ivoire–Ghana cocoa living income differential might deliver on its promise

Cited by 10 publications

References 9 publications

Assessing the German Act on Corporate Due Diligence Obligations in Supply Chains: a perspective from the smallholder cocoa farmer

Assessing the German Act on Corporate Due Diligence Obligations in Supply Chains: a perspective from the smallholder cocoa farmer

The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain

Children’s Work in African Agriculture

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