Living income

Working for a fair standard of living

In many countries of the world, smallholder families can not live off their hard work in the field. In Côte d'Ivoire, for example, a cocoa-producing family earns on average only € 172 per month. To secure their existence, an income of 478 euros would be necessary

The INA wants to ensure that living and working incomes along the supply chain are paid.

A living income is a

„Net annual income of a household earned in decent working conditions in a given location [...] sufficient to allow all members of the household a decent standard of living. Aspects that are included in the calculation of a living income include: food, water, housing, education, health care, transportation, clothing, and other essential needs, including provisions for unexpected events.“

 

With this definition, the Living Income Community of Practice sets a clear target for which INA is actively involved.

 

The Living Income Community of Practice is an international working group of more than 950 members from the private and public sector, as well as civil society, standards-setting organizations, science and consulting services. The overall objective of the working group is to promote the implementation of living incomes in global agricultural supply chains

How companies and governments can become active

Raw material prices for agricultural products such as cocoa or coffee are often so low that smallholder families can not even cover their production costs. Often there is no direct and long-term relationship with the producers, but long and non-transparent supply chains that are hardly comprehensible. In order to improve the situation of the smallholder family at the beginning of the supply chain and sustainably secure the supply of raw materials, companies and governments need to know local production conditions and introduce supportive measures for good agricultural practices and improved working conditions. In addition, companies can responsibly shape their purchasing policies by anchoring long-term contracts with producers, fair payment conditions and, above all, fair prices in their procurement practices.

 

The INA helps companies to seriously pursue this approach.