CFC and ICCO Unite to Prioritize Smallholder Cocoa Farmers in the Pursuit of a Fairer and More Sustainable Cocoa Market
Virtual Meeting, Amsterdam, 27 February 2025 – The Common Fund for Commodities (CFC) and the International Cocoa Organization (ICCO) have reaffirmed their commitment to addressing the persistent challenges in the global cocoa market, with a renewed focus on improving the lives and livelihoods of smallholder farmers. During the meeting, both organizations emphasized the centrality of empowering cocoa farmers, who are the backbone of the cocoa value chain yet often receive the smallest share of its profits. Ambassador Belal was assisted by Mr Nicolaus Cromme, Chief Operation Officer, and Ms. Zahra Kahla, CFC Intern.
The CFC presented updates on its ongoing cocoa projects and the Agricultural Commodity Transformation (ACT) Fund, which is actively seeking partners to support initiatives that drive sustainable and inclusive growth across the commodity value chain. Ambassador Sheikh Belal, Managing Director of the CFC, underscored the urgent need to humanize the cocoa value chain, ensuring that smallholder farmers benefit equitably from market growth. “True sustainability cannot be achieved unless the people at the heart of production—smallholder farmers—are fairly compensated and empowered,” he stated. Ambassador Belal called for ICCO’s support in amplifying efforts to promote fairer value distribution, greater transparency, and improved livelihoods for cocoa producers.
Ambassador Sheikh Belal emphasised the pivotal role of private sector engagement in achieving these goals. “The ACT Fund represents a unique opportunity for chocolatiers and confectioners to contribute meaningfully to the transformation of the cocoa sector. By supporting this fund, the private sector can help address pressing challenges such as deforestation, regenerative agricultural practices, and the eradication of child labor while ensuring compliance with evolving regulatory frameworks like the EUDR,” he stated.
Mr. Michael Arrion, Executive Director of ICCO, echoed this sentiment, emphasizing the critical role of smallholder farmers in the cocoa sector. He highlighted that farmers themselves recognize the need for a more just and inclusive market. “Addressing these challenges requires collective action to ensure that the growth of the cocoa industry translates into shared prosperity for those who cultivate this vital crop,” Mr. Arrion said. ICCO expressed its commitment to renewing and expanding its collaboration with CFC, with a focus on developing concrete strategies to deliver meaningful and lasting improvements for cocoa farmers.
Despite record-high cocoa prices, smallholder farmers continue to face significant economic challenges, receiving only a fraction of the value generated by the global cocoa market. Both organizations acknowledged the urgency of creating a more equitable trading system that prioritizes the well-being of farmers. The meeting served as a platform to explore innovative approaches to enhance cooperation, ensuring that cocoa farmers receive a fairer share of the value created within the sector.
Ambassador Belal elaborated on CFCs ongoing research partnership with the UNCTAD on EUDR (European Union Deforestation Regulations) and sought ICCO’s consideration to highlight the necessity of awareness among the smallholders for compliance.
This renewed partnership between CFC and ICCO marks a significant step toward building a more sustainable and just cocoa market. By placing smallholder farmers at the center of their efforts, both organizations aim to foster responsible trade practices, empower producers, and ensure that the benefits of a thriving cocoa industry are more equitably distributed. Together, they are committed to driving transformative change that uplifts the lives of those who sustain the global cocoa value chain.
About the Common Fund for Commodities (CFC):
The Common Fund for Commodities (CFC) is an intergovernmental financial institution established within the framework of the United Nations. Its mission is to support commodity-dependent developing countries in their efforts to alleviate poverty, promote sustainable development, and achieve the Sustainable Development Goals (SDGs).
About the International Cocoa Organization (ICCO):
The International Cocoa Organization (ICCO) is an intergovernmental organization established in 1973 under the auspices of the United Nations. It brings together cocoa-producing and cocoa-consuming countries to promote a sustainable world cocoa economy. ICCO works to enhance market transparency, support research and development, and improve the livelihoods of cocoa farmers by addressing challenges such as price volatility, sustainability, and value chain efficiency. Through international cooperation, the ICCO aims to ensure a fair and stable cocoa sector for all stakeholders.
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