A Divine story: DFID's contribution to a Fairtrade success
Image courtesy of Fairtrade Foundation
Chocolate produced by a cocoa farmers’ co-operative in Ghana, west Africa,
has become a
Fair
Trade success story – thanks in part to DFID’s support at a crucial
moment for the company in 1999.
The co-operative – called Kuapa Kokoo – grows the cocoa for the increasingly successful Divine brand of chocolate. Inspired by their success the co-operative’s motto is "pa pa paa" – which means “best of the best".
That doesn’t just apply to the chocolate that we buy – the fact that Divine is a fair trade product means that the farmers are paid a decent price for the cocoa they grow.
A very good place to start
DFID’s involvement with the Day Chocolate Company – which makes Divine
– began in 1992, when we began to give technical and financial support to
UK-based Twin Trading, to help set up the Kuapa
Kokoo co-operative.
Then in the late 1990s, Kuapa Kokoo – in partnership with Twin Trading, Comic Relief, Christian Aid and Body Shop – decided to launch their own brand of chocolate bar.
In 1999, DFID stepped in to guarantee the £400,000 loan, which set up
the embryonic Day Chocolate Company to market Ghanaian smallholder cocoa.
Shortly afterwards, the
Divine
brand was launched.
The
story of how small-scale cocoa growers in Ghana got to own a chocolate
company (Divine website)
More
on Divine Chocolate and Kuapa Kokoo
Who
is behind the Day Chocolate Company?
From farmers to shareholders
Image courtesy of Fairtrade Foundation
DFID’s guarantee contained an innovative provision, which enabled the farmers to own 33% of shares in the UK company. As a result they have a say in how Divine is produced and sold, and are entitled to a share of the profits.
Shareholding has also increased their self-esteem and given them a deeper understanding of the market for chocolate in developed countries. Kuapa Kokoo pays all its farmers a fair price for their crop, in cash, and on time.
Turnover is doubling and today, the 35,000-strong co-operative also acts as a lobby group for its members and helping to provide education and health facilities to its communities.
Oxfam:
Fair Trade in Action - Cocoa farmers in Ghana
Key facts
- 1-13 March 2005 is
Fairtrade
Fortnight - DFID's Development Awareness Fund is providing almost £100,000 (2004-2006) to the Fairtrade Foundation to enable communities to work towards Fairtrade Town or City status
- In 2002, DFID provided £300,000 to the Fair Trade Foundation on a project to extend the reach of Fairtrade labelling to new producers in developing countries - stay tuned for an announcement in late February 2005
- DFID has given grants totalling £830,000 from the Department for International Development, (£340,000 in partnership with the Capespan Foundation to support Thandi fruit, and £490,000 in partnership with Vinfruco). These have helped Thandi to export its produce to countries all over the world, including to supermarkets in the UK, such as the Cooperative chain
- The UK Government has committed more than £160m to help poorer countries
develop trade and take part in trade negotiations in its
recent
trade and investment White Paper
