PAN AFRICAN VISIONSPAN AFRICAN VISIONSPAN AFRICAN VISIONS
Font ResizerAa
  • Home
  • Politics
    PoliticsShow More
    Cameroon: ‘Enough Is Enough’ After 10 Years of Conflict – Agbor Balla

    By Boris Esono Nwenfor BUEA, PAV – Cameroon must do more to…

    By
    Pan African Visions
    Cameroon’s Anglophone Crisis Marks 10 Years as Rights Groups Release Partial List of 4,000 Reported Deaths

    By Boris Esono Nwenfor BUEA, Cameroon — Ten years after protests in…

    By
    Pan African Visions
    Counting the Dead in Cameroon

    By Felix Agbor Balla Nkongho and Rebecca Tinsley * Ten years ago,…

    By
    Pan African Visions
    Amnesty Researcher Accuses Sudan Rebels Of  Recruiting Children,  Sexual Violence

    By Jean-Pierre A.  The Rapid Support Forces (RSF), have recruited children in…

    By
    Pan African Visions
    Mutharika Marks First Year in Office, Calls on Malawians to Unite and Rebuild Economy

    By Burnett Munthali LILONGWE — President Arthur Peter Mutharika has marked his…

    By
    Pan African Visions
  • Business
    BusinessShow More
    NEUMAN & ESSER Heads to AEW 2026 With Africa Strategy Moving From Promise to Practice

    From oil and gas services and local engineering capacity to flare-gas recovery…

    By
    Pan African Visions
    Totalenergies And Africa: Mike Sangster On The Investments, Partnerships And Projects Shaping A New Energy Era

    From Mozambique and Namibia to Uganda, Angola and Nigeria, TotalEnergies is placing…

    By
    Pan African Visions
    Sierra Leone : Inside Africa’s Emerging Energy Investment Frontier

    From Shell’s offshore reconnaissance agreement and Eni’s entry to Marginal Energy’s $225…

    By
    Pan African Visions
    Senegal Is Ready For Its Next Investment Cycle

    -Energy Minister Abdourahmane Diouf on new projects, reforms and opportunities. From Sangomar…

    By
    Pan African Visions
    TotalEnergies Bets on East Africa’s Youth to Power the Next Energy Era

    From Kampala to Arusha, TotalEnergies is expanding its engagement with students, young…

    By
    Pan African Visions
  • Health
  • Sport
    SportShow More
    NBA Closes Africa Academy After Eight Years of Developing Young Talent

    By Boris Esono Nwenfor The National Basketball Association (NBA) has closed its…

    By
    Pan African Visions
    Zanzibar’s Under-13 Footballers Head to Brazil Seeking Experience Beyond the Pitch

    By Adonis Byemelwa Zanzibar— Eighteen young footballers from Zanzibar are scheduled to…

    By
    Pan African Visions
    DR Congo Maintain Perfect Start as AFCON 2027 Qualifying Race Takes Shape

    By Boris Esono Nwenfor BUEA, PAV – The Democratic Republic of Congo…

    By
    Pan African Visions
    Cameroon Begin AFCON 2027 Qualifying Campaign with 3-1 Win Over Comoros

    By Boris Esono Nwenfor BUEA, PAV – Cameroon made a winning start…

    By
    Pan African Visions
    Ambassador Koroma Urges Leone Stars to Make Sierra Leone Proud Ahead of Zimbabwe Clash

    By Aminaash Nyande Brima El Jadida, Morocco, September 24, 2026 —* Sierra…

    By
    Pan African Visions
  • Multimedia
    • Sports
    • Documentaries
    • Comedy
    • Music
    • Interviews
  • APO/PAV
  • AMA/PAV
    AMA/PAVShow More
    In Togo, women turn to their hairdressers long before health professionals, new study finds

    Bluemind Foundation’s Trust Study, conducted with 576 women, examines an overlooked part…

    By
    Pan African Visions
    Pursuing the Promise of AI: A Guide for African Nonprofits to Advance Their Missions

    Insights from more than 40 nonprofit, funders, and other experts highlight practical…

    By
    Pan African Visions
    PawaPay becomes one of the first licensed PSPs in Mozambique

    New Bank of Mozambique licence enables direct merchant onboarding across one of…

    By
    Pan African Visions
    Thales selected by Royal Air Maroc to digitalise flight operations with AvioBook Flight

    Thales is proud to support Royal Air Maroc’s ambitious growth strategy with…

    By
    Pan African Visions
    FIS-RDC, EnPower, Trafigura and Gridworks Join Forces to Deliver Landmark Power Interconnector to Supply the DRC’s Copperbelt

    A 700MW cross-border transmission line will bring affordable power to the DRC’s…

    By
    Pan African Visions
  • Media OutReach
    Media OutReachShow More
    Verdant Rock Receives A (low) Financial Strength Rating from Morningstar DBRS, Adding a Second International Investment-Grade Assessment

    Verdant Rock now holds Financial Strength Ratings from both Fitch Ratings and…

    By
    Pan African Visions
    ECO Expo Asia opens at Hong Kong AsiaWorld-Expo in late October

    Debut of ASEAN and Qinghai Pavilions alongside four key themes spanning energy,…

    By
    Pan African Visions
    World Health Summit 2026: Berlin Becomes Global Meeting Point for the Future of Health

    BERLIN, GERMANY – Newsaktuell - 11 October 2026 - The World Health…

    By
    Pan African Visions
    Big Apple Donuts & Coffee Opens Its 100th Store in Malaysia, Celebrates With RM1 Pandan Donuts Nationwide

    Born and grown in Malaysia, the 19-year-old brand marks the milestone at…

    By
    Pan African Visions
    OPPO Find X10 Pro Max to Debut Globally with MediaTek’s 2nm Flagship Dimensity 9600 Pro

    SHENZHEN, CHINA – Media OutReach Newswire – 9 October 2026 – OPPO,…

    By
    Pan African Visions
  • Blogs
    • African Show Biz
    • Insights Africa
    • Cumaland Diary
    • Kamer Blues
    • Nigerian Round Up
    • Ugandan Titbits
    • African View Points
    • Global Africa
  • Magazines
Search
  • Global Africa
  • Interviews
  • Politics
  • Sports
  • African Newsmakers
  • African View Points
  • Development
  • Discoveries
  • Education
© 2026. Pan African Visions. All Rights Reserved.
Reading: Is Fairtrade FAIR to Cocoa Farmers?
Font ResizerAa
PAN AFRICAN VISIONSPAN AFRICAN VISIONS
  • Politics
  • Business in Africa
  • Blog
  • Health
  • Sports
  • Entertainment
  • Multimedia
  • Contact
Search
  • Home
  • Politics
  • Business
  • Health
  • Sport
  • Multimedia
    • Sports
    • Documentaries
    • Comedy
    • Music
    • Interviews
  • APO/PAV
  • AMA/PAV
  • Media OutReach
  • Blogs
    • African Show Biz
    • Insights Africa
    • Cumaland Diary
    • Kamer Blues
    • Nigerian Round Up
    • Ugandan Titbits
    • African View Points
    • Global Africa
  • Magazines
Have an existing account? Sign In
Follow US
© 2025 Pan African Visions.  All Rights Reserved.
PAN AFRICAN VISIONS > Blog > AMA > Is Fairtrade FAIR to Cocoa Farmers?
AMA

Is Fairtrade FAIR to Cocoa Farmers?

Last updated: July 6, 2020 6:10 am
Pan African Visions
Share
SHARE

For the past decades, we have seen acclaimed sustainable certification organisations, telling the whole world that there is the need to fight for fairer trade for farmers across the Globe.

One of such certifications is Fairtrade, who have indicated in their mission statement, as committed to connecting disadvantaged farmers and their workers with consumers to promote a fairer trade and also empower them to deal with poverty and deal with supply-side problems like child labour and misuse of lands. They claim to achieve this by assuring farmers a minimum price for their cocoa beans and an additional fairtrade premium (Fairtrade, 2019). Lucrative, right?

Well, according to empirical research by Nelson, et al., (2013) on comparing the livelihoods of Fairtrade and non-Fairtrade cocoa farmers in Ghana, it came to light that there wasn’t any significant difference in the income both groups earned.

One of the reasons was the fact that Ghana Cocoa Board (Cocobod) provided all farmers including the non-certified farmers with extension services they needed, hence bringing them up to speed with the certified farmers at no cost. Also, Fairtrade certified producers experienced an increase in the cost of production as compared to their non-certified counterparts partly due to the requirements of the Fairtrade certifications.

But did you know that to gain the Fairtrade certification as a farming group, you needed to pay an application fee, initial certification fees, annual certification fees, follow up audit fees, additional auditor fee and a 0.45% retention of the freight on board (FOB) price of cocoa beans sold on Fairtrade conditions (Fairtrade labelling Organisation, 2011)? 

KPMG (2012) confirmed this by explaining that Fairtrade certified producer groups are made to pay an initial fee between US$1,859 and US$4,511and an additional annual fee ranging from US$1,521 and US$3601 respectively according to the size of the group.

Do Fairtrade cocoa farmers gain any price advantage from the certification?

Figure 1:Cocoa Price statistics from tradingeconomics.com 2019

No alt text provided for this image

As seen in figure 1 above, the benefits of being a Fairtrade certified farmer was experienced between the years 1989 to 1994 (5yrs) and 1999 to 2002 (3 yrs) where world market prices for cocoa were significantly below the Fairtrade minimum price of US$2000 (Trading Economics, 2019). However, since 2008 till the 3rd quarter of 2019, the world market price hasn’t fallen below Fairtrade minimum price. So has Fairtrade delivered the value the promised farmers? For over 10 years, Fairtrade cocoa farmers had to settle for the same world market price as non-Fairtrade farmers.

Fairtrade in 2018 hinted an increase in its price floor from US$2,000 to US$2,400 (Fairtrade, 2018) but it lost its bargain as it met the announcement of a new price floor of US$2,600/ton by Ghana and Ivory Coast (FT, 2019).

This indicate that Fairtrade cocoa farmers for more than a decade hasn’t gain any price advantage promised them. Farmers have instead spend more money towards meeting Fairtrade’s certification demands and requirements, hence making them trail behind non-Fairtrade farmers in terms of price advantages.

Do Cocoa Farmers get the Fairtrade premium as promised?

According to (Nelson, et al., 2013) Fairtrade farmers in Ghana and their community received only 49% of the Fairtrade premium while the distribution of the remaining premium i.e. 21.78%, 10.37% and 19.22% went into inter-company transfers, capitalisation process and internal control systems.

Some farming communities according to the findings of Nelson research couldn’t even identify which social projects Fairtrade had done in their communities, hence questioning how the 49% is even used. As mentioned, the 49% doesn’t go to the farmer but rather apart goes into community development and the rest to the farmer. The questions is, why should it be the cocoa farmer’s sweat alone, that should be used in developing the entire community? How about the orange, pepper, garden eggs farmers income? How about the uncertified cocoa farmer? I leave you to judge if you find this fair.

So, who then is benefiting from Fairtrade?

According to a study by the University of Bonns, consumers were willing to pay 30% more for products with the Fairtrade certification logo (Enax, et al., 2015). This has created an enormous amount of power to certification companies as a source of value enhancement by other actors in the chain. So, as buyers of Fairtrade beans are usually processors and manufacturers of and can mitigate the increased cost by transferring it to the consumers, farmers have no way of mitigating any cost of production increase as they have no control over prices. This exposes Fairtrade farmers to a lot more livelihood problems rather than their expected gains.

So, is Fairtrade being fair to farmers and ethical buyers? Short Answer is NO. I would argue that Fairtrade is only being fair to Fairtrade, Cocoa processors, Chocolate manufacturers and chocolate retailers.

In conclusion, even though Fairtrade’s model was of value during the 1980/90s its relevance in the 2000s is being questioned (Krauss, 2015). The issues I have outlined and my argument can be summed up in the recommendation by Fountain & Huetz-Adams (2018) that certification organisations shouldn’t over promise and underdeliver and should be more transparent to consumers and farmers, else dissatisfaction can lead to the disillusionment of the entire sector and everyone will be affected.

Author: Kwame Asamoah Kwarteng

Author’s Bio

Kwame Asamoah Kwarteng is an International Development & Trade Analyst.  He has 10 years working experience within the Cocoa, ICT,  Oil & Gas and Higher education sectors.Twitter: @asamoahpeters

The post Is Fairtrade FAIR to Cocoa Farmers? appeared first on Ghana Talks Business.

Ghana Talks Business

Source : African Media Agency (AMA)

Share This Article
LinkedIn Email Copy Link Print
Previous Article Ces mesures d’allègement du confinement au Gabon qui se contredisent elles-mêmes !
Next Article A Pathway to Universal Healthcare in India
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
XFollow
InstagramFollow
LinkedInFollow
Diestmann

You Might Also Like

Hydrocarbures : Total Sénégal paiera 7,284 milliards FCFA de dividendes à ses actionnaires

By
Pan African Visions

Coronavirus – Kenya: COVID-19 posters delivered to enhance awareness to prevent the spread of the virus

By
Pan African Visions

Central African children in crosshairs, UN calls for their protection

By
Pan African Visions

Les candidatures au «Green Business Incubator» ouvertes jusqu’au 19 février

By
Pan African Visions
PAN AFRICAN VISIONS
Facebook Twitter Youtube Rss Medium

About US


Pan African Visions: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

  • 7614 Green Willow Court, Hyattsville, MD 20785 , USA
  • +1 24 0429 2177
  • pav@panafricanvisions.com
Top Categories
  • Politics
  • Business in Africa
  • Blog
  • Health
  • Sports
  • Entertainment
  • Multimedia
  • Contact
Usefull Links
  • PAV – Home
  • Contact Us
  • About Us
  • Complaint
  • Advertise With Us

© 2026 Pan African Visions. 
All Rights Reserved.