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The Living Income Model sets the Living Income Reference Price (LIRP) for cocoa in Ghana & Côte d’Ivoire.

The systemic underpayment of cocoa farmers is exploitation, causing a domino effect that leads to poverty, which forces farmers to turn to other forms of exploitation: poverty, child labour and deforestation.

Fairtrade and Tony’s Chocolonely share their vision on living income and use the same model for calculating the cocoa price that enables cocoa farmers to earn a living income. The Living Income Model, developed by Fairtrade, calculates the LIRP. The model reflects a holistic view where productivity increases, income diversification and paying a price that enables a living income are all needed to get farmers to a living income. We call upon all chocolate companies to make paying at least a LIRP the norm. 

The living income model has a holistic view where increased productivity, income diversification and paying a LIRP are needed to get farmers to a living income. This is a shared responsibility from the cocoa market players, cooperatives and farmers.

(see: Fairtrade Living Income Reference Prices for cocoa)

Our Living Income Model calculates the Living Income Reference Price for cocoa in Ghana and Côte d’Ivoire. In 2024/25, the LIRP was set at €2,200 in Côte d’Ivoire for both the main and mid crop and €1,899.34 for the main crop in Ghana.

Tony's 5SP model Tony's 5SP model

Each year, Tony’s calculates and pays the additional premium that enables cocoa farmers to earn a living income. Paying a higher price (that enables cocoa farmers to earn a living income) is part of Tony’s Sourcing Principles. In 2024/25, Tony’s Chocolonely paid €3,757,268 in premiums to farmers, as part of the €7,033,727 total premiums paid by Tony’s Open Chain during the same period. Since the start of our mission, Tony’s Chocolonely has cumulatively paid over €39 million in premiums on top of the farmgate price, helping to close the gap towards a living income for cocoa farmers.

For cocoa season 2024/25, the price we paid cocoa farmers was set up as follows.

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