Unveiled: Fairtrade Report Offering Aid to Struggling Cocoa Farmers
The Fairtrade Foundation has published a new report titled "What Makes Co-operatives Work," providing valuable insights into factors that can either bolster or hinder the ability of Fairtrade-certified cocoa cooperatives in Ghana to distribute benefits equitably among their farmer members.
The report, financed by the Open Society Foundations, aims to provide the sector with a deeper understanding of how to maximize the potential of co-operatives for cocoa farmers in Ghana, one of the world's leading cocoa exporters. This knowledge is essential, as it can lead to progress in improved incomes, rights, and resilience for Ghanaian cocoa farmers, according to the Fairtrade Foundation.
The report makes recommendations for both Fairtrade and the cocoa sector at large, such as improvements in identifying obstacles to empowering farmers within co-operatives and supporting co-operatives in their mission to increase impact for members and beyond. It was written by UK-based researcher Dafni Skalidou, supported by researcher Gladys Nketiah and Fairtrade Africa's cocoa team in Ghana.
The research was conducted through focus group discussions with cocoa farmers in Fairtrade's West Africa Producer Network and interviews with various stakeholders in the sector, including Fairtrade cocoa co-operatives. It offers a series of next steps for both active co-operatives in Ghana and external stakeholders seeking to support them.
Among the recommendations is a focus on including sharecroppers in training and incentives provided by co-operatives, the creation of better value chain guidelines for more coordinated and diversified external support, and the facilitation of better co-operative networks and platforms that address internal challenges as they arise.
Additionally, the report advises investing in leadership skills among young people in cocoa farming communities to prepare for the next generation of co-operative leadership. It also urges the sector to prioritize governance strengthening to establish a solid foundation for co-operatives before making large investments in operational or program activities.
Program Development Manager at the Fairtrade Foundation, Brian Doe, stated, "This report comes at a significant moment for the Fairtrade system: 2021 served as a critical reflection point for Fairtrade's growing and often new programmatic partnerships aimed at strengthening our certified cocoa co-operatives in West Africa beyond advocating for increased sourcing on Fairtrade terms."
He added, "Our new report, supported by the Open Society Foundations, offers a critical opportunity to assess factors that can support or hinder the success of cocoa co-operatives in Ghana in creating value for farmers. We hope that the insights gained from farmer voices and experiences will be heeded by the sector, enabling us to better unlock the potential of producer-led cooperatives to improve farmers' lives."
The report suggests that various internal and external factors can impact a co-operative's capacity to support farmers. Internal factors include integration and cohesion within the co-operative, leadership structuring, equitable distribution of benefits, and a dynamic governance system that ensures transparency and inclusion.
External factors affecting a co-operative's ability to drive benefits for its members include complex relationships between farm owners and workers, pressure on co-operatives to negotiate partnerships with commercial actors, and the role of public institutions, such as the Ghanaian Department of Co-operatives.
The paper provides an analytical tool designed to help co-operative structures evaluate their own ability to create impact for their members and cocoa farming households. Understanding the nature of a co-operative's value to farmers, as well as potential barriers to positive impacts, can help producer organizations better equip farmers to face modern challenges, such as climate change and fluctuating cocoa incomes.
According to Brian Doe, the report underscores the importance of conducting critical analysis on the dynamics of a particular co-operative structure's success in delivering tangible benefits to its members through its unique history, trajectory, and relationships with external actors over time.
- The report, funded by the Open Society Foundations, provides insights into how the Fairtrade sector can optimize the potential of co-operatives for cocoa farmers in Ghana, focusing on factors such as analysis, development, and investment.
- The Fairtrade Foundation's report recommends investing in leadership skills among young people in cocoa farming communities and advises governance strengthening to set a solid foundation for co-operatives prior to substantial investments.
- The report serves as a valuable tool for co-operatives, offering an analysis of internal factors including integration, leadership, benefit distribution, and governance, as well as external factors like relationships with commercial actors and public institutions.
