Analysis of cocoa and chocolate purchasing practices that could undermine living incomes for cocoa farmers (West-Africa – Belgium)

Introduction

Oxfam Wereldwinkels (hereafter OWW), a non-governmental organisation for humanitarian assistance and development aid, launches an Invitation to Quote (IQ) under Making Agricultral Trade Sustainable (MATS, INTCE 205) for a critical analysis of purchasing practices of cocoa and chocolate that could undermine living incomes for cocoa farmers.

The quote must arrive at latest on April 10th, midnight CET and stay valid until May 10th, midnight CET.

The Invitation to Quote (IQ) is structured as follows

1. Terms of reference
2. Submission procedure
3. Decision procedure

Your quote could form the basis for a contract between your company and OBE. However, this invitation to quote does not oblige OBE to proceed with the actual act of purchasing. No compensation can be claimed in case of non-acceptance of a quote or non-award of a contract.

Oxfam General Purchase Conditions apply to all Oxfam purchases. If there is an inconsistency between any of the provisions of these Conditions and a particular provision in the IQ or a contract then the provision in the IQ or the contract will prevail.

1.    Terms of reference

1.1    GENERAL INFORMATION

INSTITUTION: OXFAM WERELDWINKELS (OWW)
TENTATIVE TITLE: ANALYSIS OF COCOA AND CHOCOLATE PURCHASING PRACTICES THAT ARE UNDERMINING LIVING INCOMES FOR COCOA FARMERS
BUDGET: 30.000 € 
PERIOD: APRIL - SEPTEMBER 2023

Oxfam Wereldwinkels (OWW), since 2020 an integral part of Oxfam België (OBE), has been advocating for a sustainable cocoa/chocolate sector for several decades. Since 2010 we are co-publishing the bi-annual Cocoa Barometer and we are one of the founding members of the VOICE-Network, the main CSO-advocacy network in the cocoa sector. The rights of farmers and small farmer organizations are central to our approach. Therefore we advocate for the human right of a living income to be protected and respected for all farming families.

In recent years there has been a lot of movement around the topic of living income, with statements from CSO’s, governments, knowledge institutions as well as companies. Governments are looking for ways to legislate the protection of a living income while companies look at the concept mostly from a CSR perspective. This approach is mostly disconnected from their business model as a whole. Despite the fact that prices are an essential element of the living income equation, they are mostly overlooked as part of the living income strategies.
 

1.2    Objectives

With this study we would like to get a better understanding of the actions that companies (willingly and unwillingly) are doing that are keeping cocoa prices down and therefore potentially harming the right to a living income for cocoa farmers. This better understanding should help policymakers to create adequate rules that push companies to respect the right to a living income through their business models as a whole.

From these learnings, we would like to make recommendations to:

• Businesses: to shift to a business model that contributes to their living income commitments
• Legislators: to change the trade rules and to create a level playing field for living income conform pricing models
• Governments and cooperatives in exporting countries: How to increase their negotiating power and raise prices for farmers