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KUAPA KOKOO
Ghana
Product:  Cocoa

Number of Families:  48 854 farmers in 937 villages


Context

Ghana was the leading world exporter of cocoa from the 1920s until the 1970s. Today, cocoa accounts for 45 % of Ghana’s exports and over 1.5 million of its people are involved in the sector. In Ghana, the 1993 liberalisation has been more successful than in many neighbouring countries as it has been partial, with quality and export functions retained under the control of the state.

The extreme volatility and regular decline of cocoa prices since the 1970s have provided the backdrop for the rise of alternative trading initiatives like Kuapa Kokoo and the Day Chocolate Company and, more generally, of Fair Trade product certification.

Kuapa Kokoo

Kuapa Kokoo (KK), a pioneering cocoa cooperative, is a model for the expansion of Fair Trade. Kuapa Kokoo was established in 1993 with the assistance of English and Dutch NGOs, in response to the liberalisation of the cocoa sector.

Being Ghana’s only cocoa producers organisation owned by the farmers themselves, KK is also the country’s best functionning cocoa entreprise, being the only one with no depths towards the state or towards the farmers.

Today, KK has a membership of 48 854 farmers in 937 villages, of whom 70 % are smallholders and 30 % are women. The output of the cooperative represents 8% of total world sales of cocoa. Of this, 3 % is separated and tagged for the Fair Trade market




Objectives

Kuapa Kokoo (KK) was set up by small-scale cocoa farmers with the mission to effect:

- Full control of their occupation

- Increased income and standards of living through payment of higher cocoa prices

- Social, economic and political empowerment

- Enhanced women's participation in the decision making process at all levels

- Environmentally sustainable production processes and improved farming methods

Central to achieving these goals is KK’s belief in democracy, advocacy, transparency and self-reliance. Pa pa paa! is their slogan. In Twi, the local language, it means “best of the best” and can be heard in growers’ songs and as a greeting between them.

Fair Trade Impact


The difference between the world market price and the Fair Trade minimum price, contributed for US$ 1million extra income to KK farmers in the period 1993–2001.

On top of this, within the Fair Trade purchasing terms for cocoa beans there is a social premium of US$150 per tonne. The Fair Trade premium is invested back into the community with projects that have a significant impact on poverty reduction:

- 174 drinking water wells were hand-dug thus improving health conditions and reducing the physical burden on women

- 5 schools, 2 places of convenience, 27 corn mills and 1 bridge have been built

- An ambulant medical clinic visits each KK village once a year. Over 100 000 people, both members and non-members, have received free medical attention.

- In 2001 -2002, 9 000 € were spent on producers education Farmers’ own perceptions of a positive impact of Fair Trade include the ability to diversify so as to reduce their dependence on cocoa income by starting some other economic activity and their ability to donate and help others, indicating raised selfesteem and sense of a proactive role in their society.

Kuapa had recently initiated a series of women’s income generation projects to make women less dependent on their men as well as provide money for the family during the off season whilst the cocoa is growing. The projects included marketing vegetables, palm oil and soap produced from burnt cocoa husks. Special seminars and workshops are organised for women on a wide range of issues, or example nutrition, child care, health and credit facilities.