Ghanaian cocoa farmers demand living wages as chocolate industry makes its billions

Ghanaian cocoa farmer Kwame Mensah says he has forgotten how the premium chocolate made from his cocoa beans tastes. “A suitable size bar costs twice what I earn from a kilogram of cocoa.” My Joy Online reports that Kwame is among the 58% of Ghana’s cocoa farmers who live below the extreme poverty line.

According to the 2022 Cocoa Barometer, an overwhelming majority of farmers and their families live in poverty: the average cocoa farmer earns between $0.40 and $0.45 USD per day, whereas the living wage in Ghana is estimated as of 2022 to be $13.50 USD per day. Meanwhile, Ghana supplies 20% of the world’s cocoa. As a significant contributor to the global chocolate industry, with a revenue of over $180 billion in 2023, there is no excuse why cocoa farmers like Kwame live in such extreme poverty.

In an organized effort to take matters into their own hands, Ghana Broadcasting Corporation reports that 30 farmers submitted a grievance to the Ghana Cocoa Board (COCOBOD), the government agency that controls the cocoa industry.

Challenging a broken system 

Corporate Accountability Lab, one of the organizations that submitted the grievance on behalf of the farmers, states:

The grievance underscores the very environmental and social issues that COCOBOD is mandated to monitor and resolve, but has failed to do so. In what may be the first use since the mechanism’s inception in 2018, this grievance will test COCOBOD’s promise to give cocoa-growing communities a voice.

The COCOBOD, established in 1947, is Ghanaian cocoa’s sole seller and buyer and is under increasing scrutiny as it faces calls to address critical social and environmental challenges. Since receiving a $600 million USD loan from the African Development Bank in 2019 to boost cocoa production and improve farmer livelihoods, COCOBOD has been required to implement an Environmental and Social Management System (ESMS) designed to mitigate environmental, social, health, and safety risks in the sector.

Despite ESMS’s promise to improve conditions, reports indicate little change in the cocoa sector’s challenges. Many farmers still earn below a living wage, deforestation continues at an alarming rate, pesticide misuse remains rampant, and hazardous child labor practices are pervasive.

The demands

The Coalition Against Child Labour (CAL), Civic Response, and the University of Ghana School of Law are calling on COCOBOD to take immediate action, outlining several key demands:

1. Increase Farmgate Price and Living Income: Raise the farmgate price of cocoa to ensure farmers earn a living income.
2. Supply Chain Transparency and Traceability: Implement measures for full transparency and traceability of cocoa supply chains.
3. Deforestation and Climate Change: Enforce company commitments to halt deforestation and support farmers in transitioning to agroforestry practices.
4. Pesticide Regulation: Strengthen controls over pesticide sales and usage, ensuring only legal chemicals are used in safe quantities and disposed of responsibly.
5. Addressing Child Labor: Mandate that companies adopt effective Child Labour Monitoring and Remediation Systems (CLMRS) within their cocoa sourcing practices.

COCOBOD’s strong influence could be transformative if it commits to these principles, setting a precedent for transparency, fair wages, and environmental stewardship in Ghana’s cocoa industry.

Join the call!

These recommendations align with Freedom United’s campaign for living incomes for cocoa farmers, which advocates for fair compensation and improved working conditions across the global cocoa industry. A sustainable cocoa sector requires that farmers receive a living income to combat poverty and resist exploitative practices. Join the fight for much-needed systemic changes to improve the livelihoods of cocoa farmers to create a more sustainable cocoa industry.