Living Income Webinar 23: Pricing mechanisms in the cocoa sector: options to reduce price volatility and promote farmer value

Price volatility is a common challenge facing smallholder farmers in tropical commodities. Recent developments of a 40% drop in the price of cocoa in West Africa have highlighted how price volatility and extended periods of low prices can undermine the gains of supply chain programs. Published in early 2018, Aidenvironment and Sustainable Food Lab paper ‘Pricing mechanisms in the cocoa sector: options to reduce price volatility and promote farmer value capture’ provides an overview of existing price mechanisms in the cocoa sector. The webinar will share the models explored in the paper and well as the main conclusions and recommendations to move towards improved cross-sectoral price and supply management.