The Migration and Rights Lab team, in collaboration with partner Radix Consult, with funding from IDH- the sustainable trade initiative is supporting ADOM LICENCES COCOA BUYING COMPANY, a farmer-owned and led Licensed cocoa buying company in Ghana to establish a robust strategic business module, incorporating elements such as improved governance frameworks, transparency, accountability, gender and social inclusivity, and a clear mechanism for equitable benefit sharing among shareholders.    

The cocoa sector in Ghana, a key pillar of the country’s economy, is the second-largest global cocoa producer. This industry is primarily driven by an estimated 1m smallholder farmers who cultivate cocoa beans on relatively small and mostly family-owned plots of land. Within this supply chain, licensed buying companies (LBCs), authorised by the Ghana Cocoa Board (COCOBOD), purchase cocoa beans from farmers. In Ghana, there are about 46 registered LBCs, most of which are owned by multinational companies or private entities. However, only 3 are owned or co-owned by farmers, underscoring the need for our project.

In the face of challenges such as dwindling cocoa production and low farm gate prices, our proposed model empowers farmer-led LBCs. This approach encourages active farmer participation in decision-making and profit-sharing, fostering a sense of ownership and ensuring more direct benefits from the cocoa trade. The model also supports the establishment of resilient cocoa unions and cooperatives, enabling sourcing cocoa beans from smallholder farmers. As a result, it ensures a consistent market for certified cocoa beans, attracting premiums from reputable sourcing companies and, importantly, curbing the menace of child labour and forced labour in the cocoa supply chain.

Key elements of the task involve

• Stakeholder engagements at various levels: farmers, unions, associations, management team, board or directors and external stakeholders
• Organisation capacity needs assessment
• Review of existing policies and procedures
• Development of organisation documents, including constitutions, by-laws among others
• Training and workshops to disseminate new policies and procedures