The challenges

Sustainability premiums (Fairtrade, Rainforest Alliance, etc.) paid to cooperatives for delivered sustainable cocoa are often managed and used by the cooperatives themselves in the following ways:

However, there is often a gap between the expectations of manufacturers regarding transparency and reporting on the use of premiums, and the assurances provided by the cooperatives. Our missions aim to ensure the transparent use of premiums, limit the risks of fraud, and improve the traceability of operations and the quality of communication between players in the supply chain.

Our support offers:

Verification of sustainability premiums in cash to farmers.

Verification of development projects funding.

Monitoring of development projects’ implementation.

Zoom on a service exemple: Verification of sustainability premiums in cash to farmers

Objective

Meet your transparency needs regarding the proper payment of your sustainability premium to farmers.

Méthodology

1/ Financial control of the premium flow from the exporter to distribution to farmers:

  • Review of premium management processes.
  • Verification of the documentary traceability of transactions at each step.

2/ Verification of the consistency between delivered cocoa volumes and received premium amounts.

3/ Individual interviews with a representative sample of farmers and thorough verification of their premium payment receipts.

Results & deliverables

  • Conclusions on the payment of the premium to farmers according to the partner’s requirements.
  • Recommendations for improving the cooperative’s processes.
  • Option: qualitative assessment of the cooperative’s governance and communication with farmers.