CONACADO
Until the 1980s, cocoa production and sales of cocoa in the Dominican Republic were controlled by four families. Along with volatile international prices, this made it difficult for the country’s small-scale farmers to maintain a sustainable livelihood.
Confronted with persistently low prices, small-scale Dominican producers joined forces in 1988 to form CONACADO. This allowed them to harness their collective power and gain greater control in their trading relationships. Today, CONACADO consists of eight regional organizations co-ordinating 182 cooperatives. It has a total membership of nearly 10,000 farmers across the country.
CONACADO began selling Fair Trade cocoa through the Fair Trade market in 1995 and is currently the largest exporter of organic and Fair Trade Certified cocoa in the Dominican Republic, with export sales of almost 10, 000 tons per year.
In 2006, the Fair Trade premiums paid to the co-op (in addition to cocoa revenues) amounted to approximately US$1,000,000.
Impact of Fair Trade
Premiums earned from Fair Trade are divided between the co-op’s members. In 2007 alone, about $380 million USD was invested into social projects. Joining the Fair Trade system also allowed the producer members of CONACADO to remain competitive internationally.
For more than ten years, cocoa beans grown by co-op members have received a high value on the market, thanks in particular to improved product quality and a more effective marketing process.
Economic development
The impacts of Fair Trade have major effects on Dominican economic life. For example, Fair Trade ensures price stability, allowing the co-op to pay its members a salary 20 to 30% higher compared to wages earned by those who sell cocoa in the conventional market. Moreover, one of the special features of CONACADO is its pre-financing system. This arrangement limits the risks of debt and/ or capital loss that frequently affect small producers.
CONACADO’s financial measures help to guarantee financial support to its members, even between harvest periods. Not only do CONACADO's members receive payments upon delivery of their cocoa, they also receive payments between harvests when cash is otherwise scarce. As well, a premium is shared between the members when the coop succeeds in selling its cocoa abroad or to local markets. These types of pre-financing represent a system of financial security and stability for coop members and their families.
Dominicans living in cocoa-producing areas have seen their living conditions improve in recent years. Investments in business development are seen as an essential strategy to support economic growth, satisfy basic needs, and improve mobility and facilitate social relations among different communities within the country. Consequently, almost half of the Fair Trade premiums received by CONACADO have been used to develop the co-operative's business capacity. These investments aim to improve the efficiency of the co-op, productivity of the fields, and quality of the cocoa.
Social Action
The other half of the Fair Trade premiums have been invested in community projects. Since CONACADO’s Fair Trade certification, its members have taken advantage of many social services that the premium has facilitated. In the early years, the cooperative gave priority to infrastructure projects that guaranteed access to safe drinking water. The Fair Trade premiums now also finance a healthcare system for the families of CONACADO members, specifically by paying for doctors’ visits in remote areas and through covering medical fees.
It is estimated that CONACADO has invested more than $380,000 USD in community social projects since 2007, half of which came from Fair Trade social premiums.
Education and women’s support
In cooperation with government efforts, CONACADO has also participated in a large literacy campaign.
Supporting initiatives focussing on women is also a key priority for CONACADO, and the co-op has provided assistance to approximately 230 women who have since formed co-operatives focussing on a variety of products that provide extra income, further improving their standard of living. Cocoa’s pulp is used in the manufacturing of jams, candies, cocoa-based wines, artisanal chocolate and cattle food. Micro-credit programs are available to support women’s involvement in the development of production activities, and scholarship programs have been set up for Dominican communities.
Thanks to the many services provided by the cooperative, members have received training and specialized instruction. Depending on the season, ~$10 USD per tonne of cocoa sold is set aside to cover associated costs, which translates into an investment of nearly $130,000 per year. This provides the members with opportunities to, among other things, learn how to better manage their farms. For example, farmers have learned how to salvage waste from cocoa production and use it to create natural fertilizer.
Environment
CONACADO has also achieved organic certification, which means its members do not use any agrochemicals and focus on sustainable agriculture. The coop not only meets international requirements, they also go a step further by leading innovative research programs. As well, the cooperative employs 80 agronomists in order to support the sustainabilty and productivity of its members' farms.
