Côte d’Ivoire produces 35 percent of all cocoa, making it the largest cocoa producer in the world. A majority of cocoa farmers in Côte d’Ivoire, however, live below the poverty line. Within the past couple of years, a financial crisis within the cocoa sector has worsened conditions for cocoa farmers. Improving financial inclusion and increasing yields could become ways to bring cocoa farmers out of poverty.
In 2017, the cocoa crisis left many farmers without pay for their work. George Koffi Kouame, a 50-year-old cocoa farmer, told the BBC that he had delivered 1.8 tons of cocoa and had not been paid. This is the result of plummeting cocoa prices, which led up to 80 percent of cocoa buyers to terminate their contracts with farmers.
Only 43 percent of farming communities observed in a study by Barry-Callebaut, a major chocolate manufacturer, had a health facility in their village. For 54 percent of the communities, the nearest health facility was, on average, 12 kilometers away, a little over seven miles.
Additionally, 25 percent of villages did not have a primary school, with 22 percent of villages having no school at all. While 87.4 percent of villages had a primary school located within five kilometers, having a school in each village ensures that education is accessible even to the most impoverished, as they may not have the means to travel for schooling.
Finally, access to safe drinking water is also a concern for some cocoa farmers. While 32 percent obtain some of their drinking water from the national water supply and 63 percent have access to pumped water, 5 percent of farming communities do not have access to either source. This suggests that they mainly drink surface water, which is more likely to be unsanitary.
Rural Côte d’Ivoire is in desperate need of better and more abundant schools and healthcare facilities, as well as access to drinkable water in certain villages. These changes would help improve the standard of living of cocoa farmers and their families more generally, potentially aiding in efforts to raise them out of poverty.
Cocoa farmers in Côte d’Ivoire are generally excluded from formal financial services. Rates for all residents of Côte d’Ivoire are high, with 53 percent of men and 64 percent of women lacking access to financial services.
Because of this, the crop cycle generally determines the financial lives of cocoa farmers. Cocoa farmers harvest from October to January and make their money for the year during this period. Then, from February to September, farmers must make the money they earned from this harvest last, as cocoa farming is the main source of income for most farmers.
If their money begins to run out during these months, many are forced to take informal loans with high-interest rates in order to make ends meet. Then, when the next harvest begins generating income, paying back these loans reduces their profit and makes it difficult to save money for the following year.
To improve the financial health of cocoa farmers in Côte d’Ivoire and help them rise out of poverty, more financial products need to be available. Access to formal loans is incredibly important, as loans through the banking sector will have lower interest rates and be easier to repay. Many farmers would benefit from being able to get formal loans for school fees, as these are due before the harvest season has begun.
Additionally, education programs to teach farmers how to best manage their money in combination with access to savings accounts can help farmers become financially sustainable over time. Advans, an international microfinance group, has been working in Côte d’Ivoire since 2015, helping farmers set aside money for the future.
Another solution, proposed by Barry-Callebaut, is to help farmers increase their crop yields, thereby increasing their income. Farmers sometimes do not use pesticides and fertilizers, decreasing their cocoa yields, partly due to low access to financial services. Improving access to financial services, as well as implementing educational programs for farmers to help them learn better agricultural practices, has the potential to significantly increase farmers’ yields over time.
Overall, improving financial inclusion and crop yields has the potential to help cocoa farmers in Côte d’Ivoire rise out of poverty. Additionally, improving education, healthcare and drinking water access will improve their quality of life. As information about cocoa farming continues to be collected, this knowledge will hopefully be used to benefit impoverished farmers.
– Sara Olk