Resources

Fair Trade cocoa and chocolate

Fair Trade is a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing their rights of, disadvantaged producers and workers - especially in the South (FINE, 2001).

Fair Trade certified producer organizations must comply with a number of requirements, related to social, economic and environmental developments. In addition, labour conditions in these organizations must follow certain standards.

The essential characteristic of Fair Trade cocoa is that producer organizations receive a higher price for their cocoa beans. The Fair Trade price represents the necessary condition for the producer organizations to have the financial ability to fulfil the above requirements, and to cover the certification fees. It is calculated on the basis of world market prices, plus fair trade premiums. The Fair Trade premium for standard quality cocoa is US$ 150 per tonne. The minimum price for Fair Trade standard quality cocoa, including the premium, is US$ 1,750 per tonne. Other benefits for certified producer organizations are better "capacity building" and "market access".

Presently, cocoa sold with the Fair Trade label still captures a very low share of the cocoa market (0.5%).

Contact Details

Cocoa Marketing Company (gh) Ltd
Post Office Box 1017
Room 302, Cocoa House/
Accra, Ghana.

Tel
0233-21-668281/668352/ 668464
Fax
0233-21-665076/667058
E-mail