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DIVINE CHOCOLATE:
A FARMER-CENTRIC MODEL OF SUSTAINABILITY
Brussels Policy Briefing 4422nd June 2016
Charlotte Borger, Communications Director
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• Average income from cocoa – 4200 cedis or 943 Euros
• Outgoing costs: food, school, fuel + farm inputs, equipment
• Not surprising next generation aspires to be nurses, teachers, seamstresses, hairdressers – anything but cocoa farming
• If we want to carry on enjoying chocolate, cocoa farmers need sustainable remuneration – enough to invest in their farms and their families + a fairer share of the value they are creating
Why be a cocoa farmer?
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In 1997 the farmers of the Kuapa Kokoo co-operative voted to set up their own chocolate company
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The world market
• $10 billion = World Cocoa Market (UNCTAD 2011/12)
• $107 billion = World Chocolate Market (UNCTAD 2011/12)
The UK market
• Very mature and competitive market• Dominated by 3 companies
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A chocolate brand with farmers at its heart
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Divine success
• Divine Chocolate recently merged it’s UK and USA businesses making it a £12.6m company
• Kuapa Kokoo owns 44% - the biggest shareholder
• Traceable supply chain from bean to bar
• Divine sells in 10 countries around the world
• Divine is made in 12 different factories across Europe
• Divine buys 1000 tonnes of cocoa per year
• Divine sources Fairtrade ingredients from seven farmer organisations around the world
• Award winning social enterprise and Fairtrade leader
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• The only Fairtrade chocolate company owned by cocoa farmers
• Fairtrade delivers reliable income and funds to invest in better living and working standards
• Company ownership delivers profits, knowledge and power
Fairtrade and beyond
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What Fairtrade delivers: Farmers decide
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What ownership means forthe farmers
Profits
• Sole supplier of cocoa
• Fairtrade price for their cocoa
• Additional income to invest in business development, skills, and democratic process
• 44% of the company’s distributed profits
• A share in the wealth they have helped create
• Collateral against which to attract loans
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Knowledge
• Understanding of the cocoa industry
• First-hand experience of chocolate market
• Face to face communication with UK consumers, retailers, politicians and activists
• Access to latest developments in farming and conservation
• Knowledge they can share with other farmers
• Adult literacy – especially for women
What ownership means for
the farmers
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Power
• The power to make their own investment decisions
• Seats on the Divine board
• Influence in the business development of Divine
• Status in the cocoa industry
• A voice in the chocolate market
• Control over their own future
What ownership means for
the farmers
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What success looks like
Kuapa Kokoo benefits from four income streams from Divine
• Income from cocoa sales (Fairtrade minimum $2000 per tonne)
• Fairtrade premium per tonne cocoa ($200)
• Profit dividend (44% share of distributed profit)
• Producer support & development fund (2% of annual turnover)
Since Divine was established in 1998, it has made over £100m and delivered over £2m for Producer Support & Development and over £205K in distributed profit
SIGNIFICANT BENEFITS TO FARMERS
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What success looks like
GROWTH, AND GOOD GOVERNANCE
• Kuapa Kokoo has grown to 85,000+ members, producing 48,000 tonnes of cocoa = 7% of Ghana’s output, over 1% of the world’s cocoa
• Kuapa Kokoo is decentralising management across its 57 districts
• Kuapa members travel as ambassadors around the world to speak to consumers, government, and business
• Kuapa has its own radio programme – best way to reach dispersed and low-literacy audience (funded by Divine PS&D)
EMPOWERING WOMEN & PROTECTING CHILDREN
• 35% of Kuapa Kokoo members are women
• The last two elected Presidents have been women
• Women members are participating in adult literacy programmes (funded by Divine PS&D), women’s groups, and skills training
• Kuapa Kokoo has its own active Child Labour Awareness Policy and programme & a strong focus on education
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What might keep farmers growing cocoa?
• Sustainable remuneration – enough to live on, improve & adapt farm, educate family and plan for the future
• Opportunity to add value to cocoa and/or share the value of chocolate
• Skills to adapt & diversify + improve quality & yield of crop
• Literacy and women’s empowerment to enable inclusive access to skills and training and leadership
• Part of a community all pulling together – sharing facilities, knowledge and accountability (not all migrating to cities)
• In control of their own business and development
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Make the moment Divine!
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Thank you