DIVINE CHOCOLATE:

A FARMER-CENTRIC MODEL OF SUSTAINABILITY

Brussels Policy Briefing 4422nd June 2016

Charlotte Borger, Communications Director

• 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?

In 1997 the farmers of the Kuapa Kokoo co-operative voted to set up their own chocolate company

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

A chocolate brand with farmers at its heart

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

• 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

What Fairtrade delivers: Farmers decide

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

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

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

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

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

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

Make the moment Divine!

Thank you