One of the challenges faced by the cocoa and coffee sectors is the exact, appropriate and timely payment of certification premiums to smallholder farmers.
At present, the payment of such premiums tend to be late, indirect, in cash and via a chain of multiple intermediaries. There is no clear visibility nor systematic process for these transfers. Full transparency is rarely, if ever, seen which is clearly not to the benefit of the designated recipients. Smallholder farmers are the weakest link in the supply chain and their position needed strengthening.
For this reason, FarmStrong Foundation has developed a unique partnership with MTN, an African mobile phone service provider, to pay out premiums in a fully controlled, verifiable and auditable way.