Kuapa Kokoo

Kuapa Kokoo’s farmers come from 1,300 village-based “societies” in five out of Ghana’s six major cocoa producing regions. The typical farm is 1-20 acres and is mostly worked by hand. The typical grower is about 40 years old. Under the company’s guidelines, members own 100% of Kuapa Kokoo and most of its sub-companies.

Kuapa Kokoo has five distinct operations, four based in Ghana. The Farmers Union (KKU or KKFU) represents all of Kuapa Kokoo’s cocoa production farmers, creates opportunities for women farmers, and promotes sustainable agricultural practices. Kuapa Kokoo Limited (KKL) is the commercial trading wing of the Farmers Union. Kuapa Kokoo Farmers Trust (KKFT) is a trust fund which receives and distributes fair trade premiums and other funds for farmers and their communities. Kuapa Kokoo Credit Union (KKCU) enables members to access credit and to establish savings accounts.

The fifth business arm, Divine Chocolate, is also owned by Kuapa Kokoo members, though only partially. It’s a chocolate marketing and distribution company that buys cocoa from Kuapa Kokoo farmers, processes it into premium chocolate, and markets it as fair trade products in United Kingdom and the United States. By establishing and owning a 45% share in Divine Chocolate UK and 33% of Divine Chocolate USA, and putting resources into promoting the brand, Kuapa Kokoo has essentially guaranteed an international market for its cocoa and a reliable value for its product.

PCK notes that the company’s primary revenue sources come from modest membership dues and direct cocoa sales. Kuapa Kokoo is now the world’s largest supplier of fair trade-certified chocolate and receives revenue from fair trade premiums, some of which are facilitated through sales made under the Divine Chocolate label. In 2007 alone, Kuapa Kokoo provided £47,379 (US $92,981) in distributable profits from Divine Chocolate to its members.

Even though all of Kuapa Kokoo’s cocoa is produced under fair trade conditions, the amount sold as fair trade cocoa really depends on market demand, which is very unstable. Ultimately Kuapa Kokoo’s profit margins and member dividend returns are based on prices set by CocoBod, the country’s only state sanctioned cocoa purchaser and international distributor.

Through Divine Chocolate, Kuapa Kokoo supplies cocoa for chocolate in Starbucks (United Kingdom and Europe) and The Co-operative (United Kingdom). Kuapa Kokoo products are also available as ingredients in other well known international brands. The Body Shop, one of the original investors in Divine Chocolate, uses Kuapa Kokoo products in their cocoa-based body care products. Cadbury’s, the world’s biggest confectionery company, is starting to use Kuapa Kokoo cocoa in one of their lines of fair trade chocolate bars. The Fairtrade Labelling Organizations International (FLO) continues to have a strong, almost mentor-like relationship with Kuapa Kokoo, and is continually cultivating appropriate international partnerships.

Kuapa Kokoo’s stated core values include “Transparency, Democracy, Equality and Equity, Commitment and Care for the Community.” It tries to comport with these values by offering advanced training to its members, providing equal opportunity and empowerment to women, and tangibly reinvesting profits into the community.

Kuapa Kokoo’s technical training educates members about how to employ more efficient and sustainable agricultural practices, and how to decipher and understand the global cocoa market. Over 10,000 Kuapa Kokoo members have taken advantage of these programs.

Kuapa Kokoo is committed to having members represented at every level throughout the organization. There is a specific grievance procedure whenever something goes awry.

The cooperative is also committed to offering equal opportunities to its women members. Although membership is 70% men, Kuapa Kokoo by-laws require that women be equally represented at every level of the company, from the village-based society committees to the highest level boards. Out of 20 National Executive Council members, 12 are currently women. It is also developing new income-generating programs for women during the harvest off-season.

Access to fair trade premiums has enabled Kuapa Kokoo to provide income-generating opportunities to its members. For example, members can buy low-cost corn mills as well as palm kernel machines, which crack palm kernels mechanically instead of by hand. Good quality scales, which allow farmers to record and document their own harvests rather than relying on a broker, are also made available to each village society. Kuapa Kokoo has also deployed its fair trade premiums to build primary schools, safe drinking wells, and mobile medical clinics in rural Ghana.

As Kuapa Kokoo grows its staff, membership, and business, it also grows its benefits to its members. In a sense, the company has created a positively reinforcing series of efforts. The Credit Union, Farmers Union, Limited Board, Trust, and Divine Chocolate all work together to benefit members and grow the overall business. For instance, by offering a credit union, members can get the credit they need to expand their production, which in turn, benefits the entire cooperative. Kuapa Kokoo is also encouraging its farmers to adapt more sustainable agricultural products that are not as taxing to the land and the soil. These include planting trees, avoiding overly mechanized harvesting processes, and protecting surrounding forest lands. Production waste from the actual cocoa pod is reprocessed into soap or compost.