Living Income Differential: Are cocoa farmers really benefiting?

Since its implementation in 2019, the Living Income Differential (LID), a joint initiative between Ghana and Côte d'Ivoire, was designed to provide cocoa farmers with an additional US$400 per ton of cocoa, aimed at addressing income inequality and improving their livelihoods.

However, the big question remains: How much of an impact has this initiative had on Ghanaian cocoa farmers?

In an interview with the Co-coordinator of the Ghana Civil-Society Cocoa Platform (GCCP), Obed Owusu-Addai raised serious concerns about the true benefits of the LID and the transparency surrounding its payment process.

He said the issue of LID payment has remained largely opaque.

Owusu-Addai emphasised the need for a thorough investigation into how the LID is being utilized and whhether the promised premium is actually reaching farmers.

“It is being charged, and we know that cocoa buyers are still paying the Living Income Differential of 400 US dollars per tonne. Maybe the question we should be asking journalists is, have you attempted to do an investigation on how the 400 US dollars is being utilised? Is it being given to the farmers? If not, why are they not giving it to the farmers? Those are the investigative works that we expect journalists to go behind the scenes to help us unravel,” he told GhanaWeb Business.

According to Owusu-Addai, the platform only hears that cocoa buyers are paying the additional US$400 per ton, but whether this amount is translating into actual income for farmers remains unclear.

“As a platform, we are only hearing that the buyers are paying. But whether or not it is translated into the pockets of farmers or included in the farmgate price, we have no data on it,” he concluded.

As the 2025/2026 cocoa season approaches, the debate over the real benefits of the LID for farmers is likely to intensify, with increasing calls for transparency and more actionable solutions to ensure a better future for Ghana’s cocoa-growing communities.

SP/MA

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