Building Financial and Organizational Strengths of Ivorian Farmer Cooperatives

Côte d'Ivoire, renowned as the world’s largest cocoa producer, is undeniably cocoa-centric, with its cocoa sector being a vital pillar of the country's economy. However, the sector has long grappled with an unjust distribution of value and risk within the supply chain, as farmers receive only a fraction of the real value for their crop and earn low incomes.

With shifting prices and worsening climatic conditions, farmers tend to respond by expanding their cocoa farms, frequently into forests and protected areas. Since 1995, cocoa areas in Côte d'Ivoire have grown by 44%, covering an estimated 3.52 million hectares. In 2020, the National Forest and Wildlife Inventory (IFFN), declared the country's forest cover at an all-time low of 9.2%. Cocoa thrives in forest areas, so increased deforestation rates which affect local weather patterns and increase carbon emissions will eventually impact cocoa production. Reports show that cocoa producing areas will no longer be able to grow cocoa by 2050, if current deforestation trends continue.

Founded in 2010, the Yakassé Attobrou Agricultural Cooperative (Cayat) works with Rainforest Alliance certified smallholder farmers in Adzope, Côte d'Ivoire. It sources cocoa from over 2,500 members cultivating cocoa on about 7,041 total hectares of land. Cayat’s mission is to regenerate the previously deforested cocoa-growing lands and improve the livelihoods of their members. A key partner in Cayat's journey towards sustainability has been Dutch-based commodity trading firm Cargill BV. Cargill purchases Rainforest Alliance certified cocoa beans from Cayat and delivers essential training in climate-smart agriculture and business management.

Image source: CAYAT.

Cayat farmers are trained on agroforestry, which involves planting fruit and timber trees alongside the cocoa trees.

In 2021, the Rebuild Facility provided a returnable grant to Cayat, allowing the cooperative to expand its agroforestry efforts and offer farmers essential inputs and training. The grant helped to bolster sustainable cocoa production in the area and increased the incomes of 1,408 farmers. Cayat’s newfound financial strength also enabled it to extend its reach and purchase cocoa from additional farmers, making it more appealing and boosting member confidence and loyalty.

Cayat also capitalized on the visibility and credibility from its experience with international financiers like the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) through the Rebuild Facility. As a result, Cayat was able to negotiate lower interest rates (from 13% to 8%) and access more financing in the next harvest season. Additionally, due to Cayat’s increased purchasing power from the grant, the cooperative was able to buy from more farmers, both members and non-members.

Beyond this, the grant due diligence process served as a catalyst for Cayat's transition towards self-sufficiency. Previously, Cayat only received partial harvest pre-financing from its off-taker Cargill. The grant provided a foundation for Cayat to begin to operate independently and think strategically as a business in the niche sustainable cocoa market.

In a country where cocoa serves as a lifeline for millions, support like the Rebuild Facility’s returnable grants exemplify how, with the right support and partnerships, Ivorian cocoa farmers can not only secure their incomes but also work toward a sustainable and resilient future that benefits both their communities and the environment.

To learn more about the impact of the Rebuild Facility’s support to Cayat, read the full case study here.