FTAO

On 19 June 2024, the United Nations General Assembly proclaimed 2025 as the International Year of Cooperatives, recognising their critical role in driving sustainable development through economic empowerment and social justice. As we celebrate World Fair Trade Day this year, we put the spotlight on cooperatives, businesses that are owned and operated by their members, typically farmers, workers or producers. On this occasion, we reflect on the power of collective action and the alliances between farmers to uphold communities worldwide, particularly within Fair Trade systems.

A global moment for cooperatives

In light of the International Year of Cooperatives, earlier this year the Fair Trade Advocacy Office (FTAO), together with a group of Young Fair Trade Advocates (YFTAs), travelled to Ghana to witness the impact and strengths of cooperative farming as well as how cocoa farmers are facing and overcoming challenges through community engagement. Through direct interviews with farmers and cooperative members across regions, from Accra to the Eastern, Ahafo and Ashanti regions, they witnessed how cooperatives benefit their members and their communities.

Globally, cooperatives operating in the agricultural value chain rank among the most popular. In parallel, in 2019, the Ghana Cocoa Board (Cocobod) identified 1,342 cocoa cooperatives in the country, which highlights the increasing interest in this type of association both by farmers and by institutional and value chain actors seeking optimal ways to reach and engage with farmers. The International Cooperative Alliance highlights the role of these structures in food security and global poverty reduction, supporting farmers to increase their returns and income by pooling their resources to support collective arrangements and economic empowerment.

Cooperatives as innovation hubs

During the field trip, the FTAO delegation witnessed how benefits go beyond ensuring fair and timely payments or price premiums, they also involve finding collective solutions to the day-to-day issues that farmers face.

What was particularly striking was how advanced the climate change mitigation measures are, given the severe impact on their communities and the threat to their farms’ economic viability. Samuel, a climate adaptation specialist working with Fairtrade Africa, emphasises the scale of the challenge: “Farmers are no longer able to predict rainfalls for their farms. The dry period lasts longer, and they can’t afford irrigation.” There, the cooperative steps up to help farmers diversify income and shift to more resilient farming practices.

Climate change is here, and farming communities are among the most vulnerable to its impacts. Cooperative structures allow them to build solid governance structures to target investments and accelerate the transition.

The group also saw how cooperatives are a source of skills development and innovation, for instance, introducing innovative techniques like agroforestry, which not only improves cocoa production but also enhances biodiversity and sustainability.

Community-oriented solutions

The power of producer-led cooperatives goes far beyond mere farming activities. They also hold the power to support communities to thrive. Through the Women’s School of Leadership, Dora, a farmer, Fairtrade Youth Ambassador and member of the Kukuom Co-operative, was inspired to start the first school for young children in her community. "I started with six children in my house, and now we have 158 students. I also began with just one teacher and myself, and now I have eight teachers and a cook," affirms Dora.

But her work does not stop there. As a cooperative member, she also visits farms to offer guidance on a range of issues: from support in improving cocoa farming to guidance on prevention and eradication of child labour in cocoa farming. The cooperative plays an active role in this, working to ensure that all children have access to education.

A fairer market for fairer value distribution

Cooperatives also support their members with access to the market, particularly in the face of new EU market requirements, such as the EU Regulation on Deforestation-free products (‘EUDR’). For the implementation of the EUDR, cooperatives have taken it upon themselves to support members with the mapping of their plots and with the digital tools needed to ensure members can still export their commodities to the EU. A task that emphasises the vital role that cooperatives play in the livelihoods of smallholder farmers.

During the interviews, cocoa farmers highlighted the need for a fairer share of value and more equitable market structures. As price volatility continues to leave producers vulnerable, Emmanuel, president of the Asunafo North Municipal Cocoa Cooperative, asks: “If the price of cocoa beans is going up, affecting the chocolate price, why are we not benefiting from it?”.

Today, brands and retailers capture around 90% of the value in cocoa supply chains, leaving producers with only a fraction of the earnings. This unequal distribution is not only a major barrier to improving farmers’ livelihoods but also undermines efforts to meet emerging regulatory requirements. As Emmanuel puts it: “Trade has changed the environment, and trade can reverse the consequences”, a clear call for a paradigm shift to protect both the planet and the lives of those who grow our cocoa.

Global partnerships for fairness

Strengthening cooperatives and ensuring their long-term viability requires a range of measures, one of which is building partnerships with other organisations. The joint partnership declaration signed by Fairtrade International and the International Cooperative Alliance (ICA) presents an opportunity to drive greater inclusion and sustainability of cooperatives in the cocoa sector in Ghana and globally. With a growing number of cooperatives operating with Fair Trade certification, the partnership has the potential to drive empowerment, progress in achieving living incomes and enhanced resilience for their membership base.

The UN's proclamation of 2025 as the International Year of Cooperatives brings further attention to the vital role cooperatives play in ensuring decent work and livelihoods for millions around the world, in line with the Sustainable Development Goals (SDGs). By continuing to support cooperatives, we can build stronger, more resilient communities, ensuring that workers and farmers are not only able to sustain their livelihoods but also thrive.

At the Fair Trade Advocacy Office, we celebrate the cooperatives within and beyond the Fair Trade Movement and hope that this International Year of Cooperatives is a turning point for global fairness and sustainability. But celebration alone is not enough. We call on policymakers, businesses and consumers to take concrete action to support cooperatives, drive systemic change and ensure greater shared responsibility across global supply chains.

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Seeds of Resilience

To celebrate World Fair Trade Day 2025, the Young Fair Trade Advocates have launched a campaign ‘Seeds of Resilience: How cocoa farmers in Ghana are leading the way in climate change mitigation and adaptation’ spotlighting the voices of cocoa farmers across various regions of Ghana, with a focus on how the communities are coping with climate change through collective action.

The video series captures the conversations held between young activists and cocoa-producing communities during a field visit in January 2025. These stories offer a window into the lived experiences, hopes and challenges of farmers, highlighting the vital role of cooperatives in building resilience.
The Fair Trade Advocacy Office and the Young Fair Trade Advocates extend their heartfelt thanks to the Fairtrade Africa team, as well as the cooperatives and community members who warmly welcomed us.

The videos will be available on the Young Fair Trade Advocates’ Instagram and X and on the Fair Trade Advocacy Office’s YouTube channel.