BONN, DE / ACCESS Newswire / September 29, 2025 / A new study found that higher farmgate prices and Fairtrade interventions are helping certified cocoa farmers in Côte d'Ivoire increase their incomes.
The study, "Assessing Cocoa Famer Income: The household income of cocoa farmers in Côte d'Ivoire and strategies for improvement," found that 24 percent of farmers are projected to earn above a living income based on the current farmgate price, compared to 7 percent two years ago. Another 50 percent should earn close to a living income.
Commissioned by Fairtrade and conducted by Impact Institute, the multi-part study demonstrates the important role price plays in farmer incomes. For example, when price rose by a third between April 2024 and April 2025, the analysis showed that the amount of farmers earning a living income is on track to almost double from 13 percent to 24 percent.
Following up on studies conducted in 2017 and 2020, researchers surveyed more than 700 farmer households from 31 farming organizations in 2024. Starting with data collected from April 2023 to March 2024, the researchers then modelled famer incomes based on more recent values for cost of production, yield, and price.
Eight-year analysis of income changes shows similar trend
Another part of the study compared 14 farming organizations surveyed in 2017 and 2020, continuing Fairtrade's commitment to measuring farmer incomes and looking for insights about what contributes most to progress toward living incomes.
Between 2020 and 2024, the study found that farmers at almost all income levels have seen their incomes shift upwards. Fifty-one percent of farmers, up from 44 percent in 2020, were earning incomes above the poverty line, while the median annual income remained stable.
Importantly, the number of famers living in extreme poverty significantly decreased from 36 percent in 2020 to 17 percent in 2024, a 19-point drop. The positive change is even more pronounced when looking back to the 2017 study, which showed 58 percent of farmers living in extreme poverty - reflecting more than 40-point improvement in the past seven years.
Farmers value Fairtrade pricing and trainings for income stability
Farmers said the Fairtrade Premium, the additional sum of money paid on top of the selling price that goes into a communal fund for farmers and workers to use as they see fit, and which is required by Fairtrade Standards, contributed to farmer income stability by improving access to better education, housing, and healthcare for their households.
In addition, farmers said trainings facilitated by Fairtrade supported progress in maintenance and pruning routines, as well as harvesting, processing, and storage techniques. This has led to better income and higher earnings.
Progress toward understanding complexities behind farmer incomes
Other indicators from the study, however, showed a more complicated picture for Ivorian cocoa farmers, who have been feeling the impact of inflation, climate change, and labor shortages. These factors have limited the positive effects expected from higher prices. For example, the study found that the average farm yield increased slightly between 2020 and 2024, from about 1,378 to 1,433 pounds per 2.5 acres (or hectare). However, average farm size and cocoa growing area decreased at the same time. This could indicate that farm measurements are more accurate thanks to geolocation mapping, and yield improvements should be interpreted with caution. In fact, the study also found that cocoa production volumes per household decreased by 29 percent and average production costs increased by 16 percent between 2020 and 2024.
The variables of household and farm size, costs, yields, and price are all important factors when it comes to earning a living income and have been part of how Fairtrade sets Living Income Reference Prices for cocoa and other products. A correlation analysis by the researchers provided insights into the interplay of these factors. For instance, while larger cocoa growing areas correlate with higher incomes, there are diminishing returns on profit per 2.5 acres because farm costs - including extra labor costs - increase as cocoa plot size increases.
This study, which comes at a time when Fairtrade is in the midst of a three-phase plan to strengthen its reference price model for cocoa, will contribute to the multi-stakeholder review process and learnings for the sector.
For the first time, the study analyzed sharecropper income, providing valuable information for the industry about a vulnerable segment of cocoa farmers. The study found that the average sharecropper income is far below the average landowner income, with the majority living in extreme poverty. Fairtrade Standards now require farming organizations to track sharecropper farmers and make sure that written contracts exist between sharecroppers and landowners within their membership.
"It's good confirmation that higher farmgate prices are indeed making a significant difference for farmers," said Jon Walker, Senior Advisor, Cocoa, Fairtrade International. "However, we have to continue to measure and explore how farmers are improving yields in the face of climate change pressures, as well as understand the dynamics of farm size and household size which this study shows are highly influential in the difference between earning a living income or not."
To learn more and to access the complete study please visit our website here.
###
About Fairtrade America
Fairtrade America works to rebalance trade, making it a system rooted in partnership and mutual respect rather than exploitation. It's about businesses, shoppers, farmers and workers all working together so we can all experience the benefits of trade. Fairtrade America is the U.S. branch of Fairtrade International, the original and global leader in fair trade certification with more than 30 years of experience working for fair trading practices in more than 30 countries across the globe. A non-profit 501(c)3 organization, Fairtrade America is part of the world's largest and most recognized fair trade certification program - part of a global movement for change. Learn more at fairtradeamerica.org, and by connecting with Fairtrade America on Facebook, Instagram and LinkedIn.
About Impact Institute
Impact Institute is a social enterprise dedicated to empowering organizations and individuals to realize the impact economy - an inclusive and sustainable economy that works for all. It focuses on key societal transitions: the sustainable finance transition (to price in externalities), the energy transition, and the food transition (towards a clean, fair, and future-proof system). In addition, Impact Institute helps organizations address complex sustainability topics such as biodiversity, human rights across value chains, and transparent reporting. Its expert teams provide strategy, tools, data, education, and services to measure, report, and manage impact.
Press Contact:
Liz Davis, ldavis@fairtradeamerica.org
View additional multimedia and more ESG storytelling from Fairtrade America on 3blmedia.com.
Contact Info:
Spokesperson: Fairtrade America
Website: https://www.3blmedia.com/profiles/fairtrade-america
Email: info@3blmedia.com
SOURCE: Fairtrade America
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/living-incomes-in-reach-for-more-cocoa-farmers-in-c%c3%b4te-d%e2%80%99ivoire-1079251
