Kuapa Kokoo gets cooperative status to benefit from Fairtrade Premium

Cocoa farmers under the Kuapa Kokoo Farmers Union are now in the position to fully benefit from Fairtrade premium in cocoa sales.

A Fairtrade Premium is added to the purchase price of cocoa and used by cooperatives for social and economic investments such as education, health services, processing equipment and loans to members.

The farmers also have a bigger say in the business of trading their cocoa beans, as their operations are formalized and legalized under the Co-operative Societies Decree NLCD 252 of 1968.

Acting Registrar of the Co-operatives Department, Jerome Adopley, says the co-operative certification will empower the farmers.

“All what we want to do is to divulge authority to the farmers, who are owners of the business, because it centers around their welfare,” he said. “Even though Cote d’Ivoire has overtaken Ghana in good quality cocoa production, Ghana is still number one because of the cooperative nature of the way we handle our cocoa”.

The Kuapa Kokoo Farmers Union has operated for over 20years but the farmers lacked administrative authority.

The Union will now operate under the name Kuapa Kokoo Co-Operative Cocoa Farmers and Marketing Union.

In line with the Fairtrade arrangement, the Department of Co-operatives has registered 57 primary societies together with the Union as a unified co-operative.

Executive Secretary of the Union, Apau Abrampah-Mensah, tells Luv Biz the new status will enable the farmers take their own decisions in the management of premium.

“This is going to help the Fairtrade to know the total and actual membership; they [farmers] are now going to take their own decisions as to how they’ll manage their premium,” he said.

Kuapa Kokoo currently has 6.9% market share of Ghana’s cocoa output. Membership of its farmers union has increased to 100,500 across the Ashanti, Central, Eastern, Western and Brong Ahafo Regions.

The Kuapa Kokoo Farmers Union also owns the biggest share of 44% in Divine Chocolate Limited, based in the UK with a franchise in the USA.

Story by Kofi Adu Domfeh