netw
www.voiceork.cc

70 %

2025

70 %70 %GoodPurchasing
Practices

2026

2024

Summarya cocoa barometer consultation paper

PRICELiving Income gap
Current prices... are too low to make a living income

Farmgate prices paid ...

Living Income
Reference Price
A Living Income Reference Price ...

Current prices... enables a living income

A living Income Reference Price(LIRP) is a farm gate price that is
sufficient to bridge the living
income gap for an average cocoa
farming household.

A Living Income Reference Price is calculated
based on the household needs - including
costs of labour, inputs, etc. and supplements
the going farm gate price with additional
payments (such as premiums) when necessary.

ASKS OF COMPANIESTransparent calculation
Every company – retailer,brand, trader – should have acalculation of the living income
gap of median farmers in their
supply chain, and a timeboundgender-sensitive commitment
to close this gap.

Living Income Reference Price
Retailers and brands must commit to requiring apublicly available LIRP from the traders they sourcefrom and must be willing to pay for this. Traders must
commit to paying a publicly available LIRP. This
commitment must include transparent calculations of
how the farm gate price they pay is sufficient to close
the remaining gap and must be applicable to themajority of the cocoa farmers in the supply chain, notjust some outliers.

Income effects of non-purchasing-based interventions (such as community investments, cash transfers,and payments for environmental service) must be
communicated transparently and based on the net
income gender-sensitive effect on the farmer, noton the cost to the company.

Review
All actors need to regularly
review their income approacheswith a gender lens to ensureinterventions actively combat
gender inequality, rather thanexacerbate it.

Premiums should be transparently
broken down into three distinct
components: cost of compliance,cooperative operation and governance costs, and net additional
income for farmers.

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RISKS

Contract
breaches
Climate changeGood

Badharvests(Un)manageable farmer risks

Manageable company risk

Input costs

Insurances
Fluctuating
pricesPests &diseases

Hedging
FuturesLow offtake

70 %

2025

70 %

70 %

ASKS OF COMPANIES

2026

2024

Asymetric long-term contractsTraders, retailers and brands, should implement
long-term asymmetrical contracts within a
specific timeframe, including realistic volumes,
the living income reference price, renegotiation
mechanisms, and clear rights and responsibilities for buyers and farmers.

Standard, sector-wide contracts for trading at
farmer/cooperative level should be implemented,
that provides clarity and assurance to farmers andfarmer organisations.

Respect the contract
Contracts and volumes must be
respected, and effective complaint
mechanisms with real consequences
for noncompliance should be in place.

The development of strong anddemocratically run cooperatives should
be supported as a key mechanism toreduce risks for farmers

twor
www.voicenek.cc

Contracts

TRANSPARENCY

01 01 1010 01 01
Policy01 01 10Results
10 01 01
01 01 1001 01 10
10 01 01
10 01 01
01 01 1001 01 10
10 01 01
10 01 01
Certification 01 01 1010 01 01
01 01 1010 01 01

Companies
Companies should share key information about
their purchasing practices, including the data theygather and the impacts of their interventions.

Farmers
This must be clear and available to thosethat need to hold companies accountableASKS OF COMPANIESConsumers, NGOs,
governments

2024
2025

Publish a time-bound policy
Companies should publish a time-boundliving income policy, and annually reporton how the living income gap is closed,including a gender-disaggregatedmeasurement.

2026

ReportCompanies should publicly
report annually on responsible
purchasing KPIs, including onvolumes and farm gate prices
paid.

Farmers should be paid for their data
sharing and ensure they have accessand ownership.

twor
www.voicenek.cc