In Ghana, cocoa farmers struggle with the volatile prices of the global cocoa market and increasing threats from climate change. As prices become evermore unsure, production is jeopardized by unpredictable rains and a rise in cocoa swollen shoot virus in the region. Farmers urgently need to diversify their revenue, but there are few options for communities oriented towards maximizing cocoa production. However, one innovative enterprise, Koa, is helping farmers make their harvest go further by converting cocoa byproducts into a new revenue stream.
The cocoa beans farmers sell to be transformed into chocolate comprise only about a quarter of the cocoa fruit that farmers harvest. For most cocoa farmers, the remaining pulp and husk are typically discarded or sometimes used as an organic fertilizer. Seeing an opportunity, Koa buys the sweet cocoa pulp from Ghanaian cocoa farmers and converts it into juice or dried flakes that can be used as ingredients in the food and beverage industry. This approach allows farmers to diversify their income while reducing waste generated in the cocoa farming process by up to 40%.
Koa meets farmers where they are, establishing solarpowered community mobile processing units (CMPUs) to separate part of the pulp from the beans in communities near farmers—or sometimes on the farm itself. Sufficient pulp is left on the beans to enable fermentation and farmers then return to their land with the cocoa beans to process and sell as a separate revenue line within the next month. Because farmers receive same-day payment for their cocoa pulp, it means that a farmer earns upfront income before they have even finished processing their main crop. More than just additional income, the timing of this cash infusion can be a critical lifeline for cashstrapped farmers who need to pay labor costs in relation to the harvest. Leftover funds in the growing season allow farmers to purchase inputs and fertilizers, building the climate resilience of their farms with the support of training by Koa on sustainable agricultural and postharvest practices.
In recent years, Koa has been working with 3,000 farmers in the Central Region of Ghana. As Koa seeks to scale its innovative solution for cocoa farmers in Ghana, the IDH Farmfit Fund is supporting that growth, most recently with a $3.5M loan in conjunction with other lenders to f inance Koa’s new processing facility. This centralized factory will enable Koa to reach 10,000 more farmers and create another 250 local jobs.