How much do cocoa farmers* earn in Ghana?

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You wonder how much cocoa farmers* earn at all? You are also interested in the price of a cocoa bag and the average size of a farm? We do not only have great chocolate, we also deliver answers to your questions.

What are the general conditions for pricing in Ghana?

Our delicious beans come from Ghana - the country with the second highest export volume of cocoa worldwide. Only Côte d'Ivoire produces more. Together, the two countries account for almost 70% of global cocoa bean exports. Last year alone, Ghana exported around 900,000 tonnes! And the claim that cocoa is an important pillar of the Ghanaian economy is proven by the fact that cocoa is the most important agricultural export good and thus also one of the main Ghanaian export goods[1].

According to studies by the Südwind and the Royal Tropical Institute of the Netherlands (KIT), the approx. 800,000 hard-working cocoa farmers* own on average between 2-8 hectares of land and their annual yield is approximately 350-400 kg/hectare (which corresponds to approx. 5 ½ bags of 62.5 kg each)[2].

 

Since cocoa farmers* receive 480 cedis (86 euros[3]) per bag, the annual income for one hectare is about 500 euros. In the following table you can find out about the annual income.

With the given figures you have to consider that they cannot provide a general picture about the income, because the cocoa growing regions have very different characteristics (soil quality, age and variety of the trees etc.). Additionally, other income possibilities have to be  accounted for.

It is also important to point out, that there are differences between hectare data and actual areas, as cocoa farmers often do not have precise measuring instruments. Of course, this can also have a considerable influence on the yield data, since areas calculated too large generate much higher yields than assumed when calculated more precisely.

 

Table 1: Income of cocoa farmers*

Hectars of cocoa plantations  Income from cocoa cultivation/year  Income from cocoa cultivation/day  Amount family members  Daily income from cocoa cultivation per family member
2   960-1100 Euros 2,63 – 3,01 Euros 5,9 0,48 Euros
3 1440-1650 Euros 3,95 – 4,52 Euros 5,9 0,69 Euros
4 1920-2200 Euros 5,26 – 6,03 Euros 5,9 0,96 Euros

Source: Calculation based on data from Südwind 2017 & KIT NL

 

The cocoa farmers* of our partner cooperative Yayra Glover own 2-4 hectares of land on which they grow cocoa. They produce around 10 bags per hectare (62.5 kg each). This comparatively high yield can be explained with Yayra Glover's expertise in organic cultivation. The cocoa farmers receive a lot of training to achieve a high yield through organic best practices. In addition, the cocoa farmers get 525 cedis per bag instead of 480 cedis through the premium we pay. As you see, by supporting the fairafric chocolate, our cocoa farmers* can be given a much higher standard of living!

 

Table 2: Income of cocoa famers* in our partner cooperative 

Hectars of cocoa plantations Income from cocoa cultivation/year Income from cocoa cultivation/day  Daily income from cocoa cultivation per family member [4]
2   1890 Euros   5,17  Euros 0,88 Euros
3   2840 Euros   7,78  Euros 1,13 Euros
4   3787 Euros 10,37 Euros 1,76 Euros

Source: Calculation based on data from our partner cooperative Yayra Glover

 

As you can see, the income of the Ghanaian cocoa farmers is very low. The falling world market price of cocoa makes the situation even more devastating. Do you want to make your way through the complex djungle of economic and national conditions and become a cocoa expert*? Then make sure you check out our other blog articles about the world market for cocoa and the cocoa market in Ghana!

 

Quellen:

[1] https://atlas.media.mit.edu/en/profile/country/gha/#Exports

[2] “Strengthening the competitiveness of cocoa production and improving the income of cocoa producers in West and Central Africa”(Südwind: 2017) & KIT https://mtyszler.bitbucket.io/cocoalivelihoods_cocoa, ”Baseline Survey: Preliminary Report” Sustainable Development for Cocoa Farmers in Ghana (International Growth Center: 2017)

[3] Stand: 19.10.2018 (0,18 cedi = 1 Euro)

[4]Quelle: Berechnung basierend auf Daten unserer Partner-Kooperative Yayra Glover