Ghana’s Kuapa Kokoo meets scientists in UK to learn future of chocolate

A £1m specialist facility has been created at Reading University in UK to protect and preserve over 400 different varieties of the cocoa plant. 

The facility should allay concerns of recent media coverage predicting world cocoa shortages.

The International Cocoa Quarantine Centre (ICQC) at Reading University will be responsible for collecting new cocoa seeds and facilitating research into breeding plant varieties that will be more resistant to disease.

In their greenhouses, they will be quarantining the seeds from all new diseases and pests, and growing healthier, more reliable plants in a hydroponic growing system.

The plants there are used to supply Ghana and other major cocoa producers, as well as some of the smaller newer producers like Vietnam.

Secretary of the Kuapa Kokoo Farmers Union, Appiah Kwarteng, and Emmanuel Arthur, Managing Director of Kuapa Kokoo Limited have been guests of the ICQC. 

They were in the UK for the Board Meeting of Kuapa’s chocolate company, Divine Chocolate, and spent some time with Director of the ICQC programme, Dr Andrew Daymond and Michelle End of the Cocoa Research Association.

“The visit provided a nice opportunity both to explain the work that we are doing at the University of Reading to Ghanaian cocoa farmers, but also to learn more about the projects that Kuapa Kokoo are involved in," said Dr Daymond.

The two Kuapa Kokoo representatives were impressed with the facility and the project. “It’s good to know a place like this exists,” said Mr Arthur.  “We need to take this up seriously – buyers want to know how we are helping the farmers to improve production and increasing our volumes – they want to know we are a sustainable business”.

He heard that the ICQC is partnering with the MMSP breeding programme in Mabang  Megakarya, and he expressed an interest in liaising with them.

Kuapa farmer and KKFU Secretary, Mr Appiah Kwarteng was keen to know how it can improve Kuapa members’ yields and future sustainability.

“I am very pleased to see this research being done, and it would be interesting to see more of these species coming to Ghana,” he said. “It will be good if the results of this research are made available to us farmers. We hope that Kuapa can benefit,” he added.

The visit to ICQC was arranged by Divine Chocolate.

Kuapa Kokoo marks two decades of empowering poor cocoa farmers

The success of Kuapa Kokoo is vindication of the vision that, given a fairer opportunity, smallholder farmers can direct and improve their own lives and communities, and be stewards of a sustainable cocoa farming business, observed Sophi Tranchell, Managing Director of Divine Chocolate UK.

The idea of forming a farmer-owned organization was conceived in 1993 by Nana Yaw Frimpong Abebrese II when the government of Ghana liberalized the internal marketing of cocoa.

Nana Yaw’s quest was to change the paradigm of the rich exploiting the poor by forming a company of the farmers, by the farmers and for the farmers.

The goal, according to Managing Director of Kuapa Kokoo Limited, Emmanuel Arthur, was to ensure Ghanaian cocoa farmers would take the price of their produce, share the profits from the produce and have a say in their produce.

A UK-based not-for-profit organization, TWIN, aligned itself with the vision to assist the farmers in both technical and financial support to establish the Kuapa Kokoo Farmers Union.

Mr. Arthur says the farmers have over the past two decades defined the direction of the organization as “have a say in the way their organization is run and how their profits should be distributed”.

In the 1993/1994 crop year, the Union mobilized about 1,250 metric tonnes of cocoa from 2,000 members.

Today, the cocoa farmers’ co-operative is mobilizing about 61,000 metric tonnes of cocoa from about 90,000 members. They are delivering more than 5% of Ghana’s cocoa and approximately 1% of the world’s cocoa.

Through the increase in Fairtrade sales, schools have been built, medical teams have attended to farmers at their doorstep through a mobile clinic project, cutlasses have been distributed to members and boreholes have been built to improve on farmers’ livelihoods.

“We are still negotiating with our Fairtrade partners and Fairtrade International to ensure that the farmers continue to benefit from Fairtrade premiums through increased Fairtrade sales,” said Ms Fatima Ali, President of the Kuapa Kokoo Farmers’ Union.

Members of the Union in 1997 voted to launch their investments in Divine Chocolate Limited based in the UK – the farmers presently own 45% shares in the chocolate company which sells products in about 12 countries, including the US.

“Kuapa Kokoo has shown that fair remuneration, for a job and skill that people get wonderful benefit from all around the world, is well invested,” said Ms. Tranchell.

She added that the farmers’ organization has demonstrated how democracy, accountability and transparency has empowered the poor farmer, historically exploited and marginalized in the chocolate supply chain.

Story by Kofi Adu Domfeh 

Kuapa Kokoo farmers receive dividend from UK-based Divine Chocolate

Divine Chocolate Limited, a UK-based company partly owned by Ghana’s Kuapa Kokoo Farmers Union (KKFU), turned over £5.6million for the 2012/2013 financial year.

The company has for the third year recorded a decline in turnover – the figures have dropped from £10.4m in 2010 to £8.2m in 2011 and £7.53m in 2012.

Managing Director of Divine, Sophi Tranchell, however says the 2013 performance “is a growth on the year before”.

The company made a profit of £44,000 and distributing a dividend of £57,000 to shareholders – Kuapa Kokoo farmers are receiving £24,000 of the amount.

“In the next year, I am glad to say we are seeing an increase in turnover and a much better margin,” said Ms Tranchell at the 20^th Annual Delegates Conference of Kuapa Kokoo in Kumasi.

She also stated that Divine Chocolate’s operations in the USA continued to grow but failed to break even.

“The team in the USA are working really well together and delivering significant growth, you can now see Divine Chocolate in thousands of outlets across America and we are getting very close to break even,” Ms. Tranchell stated.

The Kuapa Kokoo Farmers Union owns 45 percent shares of Divine Chocolate, which sells in 12 countries around the world. All chocolate products are made from cocoa from Kuapa, the biggest cocoa farmers’ organization in the Fairtrade system.

The farmers’ co-operative delivers more than five percent of Ghana’s cocoa and approximately one percent of the world’s cocoa.

story by Kofi Adu Domfeh

Kuapa Kokoo’s chocolate company records drop in turnover

UK-based Divine Chocolate Limited has for the second year running recorded a decline in turnover.

The company recorded a 9.28% drop in turnover for the 2011/2012 financial year – posting £7.53m, compared to £8.2m recorded in the previous year.

The figures have dropped from £10.4m recorded in 2010, representing a cumulative 27.6% decline in total revenue for the past two years. The closure of partner shops in the UK has been attributed to sales decline.

However, Managing Director of Divine, Sophi Tranchell, says the company made a profit of £45,000, though shareholders will not receive dividend due to a slight drop in turnover.

“I am glad to say we think we have reversed that trend this year, we are seeing a small increase in turnover and a much better margin”, she told the 19^th Annual Delegates Conference of Kuapa Kokoo in Kumasi.

Divine has a five year commercial strategy which focuses on building the brands to their full commercial potential.

Sales in the USA also increased to $4.6 million but yet to break even in that market.

Sophi is confident a commercial team instituted will see to the significant growth of the US business.

Ghana’s Kuapa Kokoo Farmers Union owns 45 percent shares of Divine Chocolate. All chocolate products products are made from cocoa from Kuapa, the biggest cocoa farmers’ organization in the Fairtrade system.

The farmers’ co-operative delivers more than five percent of Ghana’s cocoa and approximately one percent of the world’s cocoa.

Divine supports Kuapa Kokoo farmers in development programmes, including supply of farm inputs, construction of community amenities such as schools and community water projects as well as providing income generation venture support schemes.

Story by Kofi Adu Domfeh