Agrifood Economics

Assessing living income standards in Cameroonian cacao villages

22.03.2024

As part of the implementation of the Global Sustainable Cocoa Initiative (SCI), and in alignment with coordinated efforts to advance the living income (LI) concept, FAO is collaborating with the Joint Research Centre (JRC), Seville, on a LI study focusing on cocoa producing households across Cameroon. From 11 to 15 March 2024, colleagues from FAO’s Sustainable markets, agribusiness and rural transformations (SMART) team visited two villages in Cameroon to conduct preliminary testing of questionnaires that assess alternative methodologies for estimating the living income benchmark (LIB) with potential scalability for FAO.

The living income benchmark represents the level of income needed for a representative household to afford a nutritious diet, decent housing, education for children, and health care for all family members. Analysis of the disparity between actual income levels and the LIB, which is called the living income gap (LIG), can guide transformative policies and interventions.

As part of the cocoa-sector living income study in Cameroon, the JRC and FAO teamed up to create a household survey representing the seven regions where cocoa is produced. This survey, launched on 4 March 2024, aims to estimate the total income of cocoa-producing households, considering all sources of income. Additionally, the data collection includes thorough interviews with various stakeholders, including food markets and providers of education, health, and construction services across the regions.

By leveraging the data gathered through these surveys, the collaborative study seeks to evaluate the gap between the LIB and the current annual income of cocoa farmers and identify policies that can help bridge this gap and improve the livelihoods of cocoa farmers.

The SMART team mission focused on collecting data on costs associated with essential services such as healthcare and education, decent housing and a nutritious local diet using approaches developed specifically for the rural space with the possibility of being expanded to other FAO projects. The team’s main goal was to validate and refine the survey instruments and protocols, to ensure smooth implementation upon the launch of the next phase of data collection.

Looking ahead, the people who will be conducting surveys and their supervisors will undergo thorough training before fieldwork begins in early April. Insights gleaned from this research are positioned to guide decision-makers in Cameroon regarding potential policies and interventions to bridge the living income disparity. By providing empirical evidence and data-driven recommendations, the project intends to enhance the welfare and livelihoods of rural communities engaged in cocoa production in the country. These efforts, coupled with in-depth discussions with local stakeholders, are set to revolutionize the cocoa sector, fostering sustainability and prosperity for cocoa farmers in Cameroon.

The Global Sustainable Cocoa Initiative was launched in 2020 by the European Commission together with FAO to promote a sustainable, equitable, and productive cocoa value chain worldwide. With a primary focus on Ghana, Côte d’Ivoire, and Cameroon, the initiative offers a comprehensive support package comprising financial assistance, analytical services, policy facilitation, targeted interventions across the value chain, and investment support. Its overarching goal is to foster sustainable cocoa production, ensuring that farmers receive a fair and dignified income while simultaneously combatting deforestation and eradicating child labour.