Alternative approaches to achieve a living income: A roadmap for flexible premiums

This new paper published by SÜDWIND explains in more details how a Flexible Premium model could work. It is aimed to provide chocolate and cocoa companies a concrete option to take their responsibility: Their responsibility to protect the first producers in their supply chain from unwanted price volatility; to ensure they receive a sufficient income; and to ensure the companies are compliant to their requirements of due diligence within the framework of the United Nations Guiding Principles on Business and Human Rights (UNGPs).
Cocoa farmers in a permanent crisis.

The cocoa sector is in a crisis. High volatility and inflation-adjusted decreasing prices over the last decades have reduced the attractiveness of cocoa production for farmers. Most of the farmers live below the poverty line. The debate on how to calculate a living income is still ongoing, not only for cocoa but also for other agricultural and industrial sectors. It is a challenge for the cocoa industry to come to results as soon as possible.