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.

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