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The platform is built on the endorsement and expert contributions of the Living Income Community of Practice, the Global Living Wage Coalition,Fairtrade Internationaland theWageIndicator. The community of practice produces guidance for measuring and reporting living income information and understanding the gap between current and living incomes. Rich people can pretend to be poor in a workshop at - Coconuts Due Diligence for Living Income: how to address poverty and prosperity in supply chains in light of new EU legislation. decent housing, education, health care and other essential needs, plus a little We believe these three key criteria for our program can help transform cocoa farming: When I first visited a community school in Cote d'Ivoire, I met the mother of a recently enrolled student. Nestl conducted a pilot program in 2020 to test our theory of change. Underlying this is the inequality in risk and power when engaging in global value chains. Enabling Smallholder Farmers to Improve their Incomes (Parper).pdf. Other Available in English and Chinese. This session highlights specifictools, partnerships and approaches usedamong a wide range of actors directly involved in facilitating access to finance to smallholder farmers including global commercial banks (Rabobank), local banks (BanqueAtlantiquein Cote dIvoire), exporters (Barry Callebaut), micro-finance organisations (Advans), government institutions (Conseil du Caf Cacao), cooperative members and special funds that look for innovative ways to mobilise different levels of investment such as the. We expect our new initiative to triple our annual investment in cocoa sustainability, to more than USD 1 billion over the next decade. An innovative income accelerator program aimed at addressing child labor risks was announced in January 2022. extra for emergencies and savings once farm costs are covered. After presenting methodological aspects, a tool for calculating living income reference prices was demonstrated showing data from Ethiopian coffee farmers. We have the time to review what the evidence base says on key topics and connect this to work in the Living Income Community of Practice (www.living-income.com). Learn about our strategy, sales and results or download our investor seminar presentations. Yes, we have formal reporting and are no strangers to a PowerPoint deck, but at all levels, we also go straight to the field to learn on the ground. The Farmer Income Lab, a think-do tank founded by Mars, has developed a set of common core metrics and will share these with the LICOP members in this webinar. It puts a strong emphasis on the idea of decency and earning enough income to live comfortably. This will drive greater supply chain transparency and accountability, both internally and on an industry-wide scale, while giving our consumers more visibility into the source of their ingredients. These cookies track visitors across websites and collect information to provide customized ads. The goal of the Living Income Community of Practice is to support activities focused on improving smallholder incomes towards living income benchmarks, aiming to enable smallholder farmers to achieve a decent standard of living. For any questions related to the LiCoPplease contact livingincome@isealalliance.org. Living income. She told me that she was happy to have her daughter in school as long as their income could afford it. The term Communities of Practice emerged from research into learning at the Xerox Palo Alto Research Centre in California in the 1980s (Tight, 2015).As noted below in sect. A living income is central to sustainability - farmers must be able to support their families while farming in a way that protects and replenishes the planet and their communities. In the case of smallholder farmers for example, income can be earned through off farm business and remittances as well as from crop sales. They have worked with the Anker methodology to also link this method to the concept of living incomes in several value chains. About To pay the people in your value chains a living wage or income. E2 9DA It is this belief that fuels our commitment to use our global scale, resources and expertise to contribute to a healthier future for people and the planet. There is now a critical mass of empirical evidence to help understand the impacts of market-based sustainability tools on farmer incomes and livelihoods. GUIDANCE ON CALCULATING FARMER INCOME USING SECONDARY DATA. Founded by GIZ, Sustainable Food Lab and ISEAL, the Living Income Community of Practice (LICoP) is an alliance of partners dedicated to the vision of thriving, economically stable, rural communities linked to global food and agricultural supply chains. The Living Income Community of Practice is an alliance of partners dedicated to the vision of thriving, economically stable, rural communities linked to global food and agricultural supply. Discover the basics of living wages and living income, the urgency and the benefits of working towards realising them in global supply chains. We learned how TechnoServe leverages local expertise, technical know-how, and impact measurement to empower enterprising people to lift themselves out of poverty. We will remodel how we source cocoa to achieve full traceability and segregation of our chocolate products from origin to factory. One of the key pillars of the Living Income Community of Practice is to explore methods for addressing gaps between living income benchmarks and existing incomes for smallholders. The cookie is used to store the user consent for the cookies in the category "Analytics". In this living income webinar, we joined the World Benchmarking Alliance to discuss living income metrics. Founded by GIZ, Sustainable Food Lab and ISEAL, the Living Income Community of Practice is an alliance of partners dedicated to the vision of thriving, economically stable, rural communities linked to global food and agricultural supply chains. In addition, it explores the many roles standards systems can play in advancing living income for smallholders. This webinar shares the intentions and key findings behind Keringand Textile Exchanges report A world beyond certification A best practices guide for organic cotton trading models which provides insight on the subject. Dmystifier le concept de revenu vital: De quoi il s'agit et comment il peut promouvoir votre travail. An innovative income accelerator program aimed at addressing child labor risks was announced in January 2022. Living income: a story from measurement to impact - ISEAL Alliance Furthermore Manfred Borer, Country Director of SwissContact, presents on how the foundation has used the PPI in their data collection for their country-wide Sustainable Cocoa Production Programme in Indonesia. Gender Transformative Tracker tool (OBAS), Sustainability Systems - Showcase of projects that work to meet producer needs and positively influences livelihoods & resilience. Sustainability standards and similar systems have sought to address this in various ways. Ultimately, those changes contribute to better farmer income, sustainability, and social impact, while providing farmers and their families an immediate financial benefit. The Living income Community of Practice holds regular webinars covering topics from measuring actual and living incomes to closing income gaps, with speakers and examples from various disciplines and sectors. Close monitoring of farmers income improvement is crucial to learn what works best and build on successes. An approach for aligning smallholder household incomes measurement. Beyond Fairtrade certification, industry partners who want to go a step further in assuming their responsibility for living incomes can work with us to develop customised projects. Understand the gap between actual and living incomes. Farm & Cooperative Investment Program: Impact Analysis Solutions must be localized. Search for jobs here. Earning a decent livelihood is a human right. Sorry, you need to enable JavaScript to visit this website. During the first two years, cocoa-farming families can earn up to CHF 500 in direct bonus payments annually by taking part in the program and reaching the associated targets. 10 000 cocoa-farming families, Cte d'Ivoire, Scale-up My trips to these communities, and the tireless work of our local teams together with local farmers, have led us to our latest undertaking: helping farm families in our cocoa supply chain reach a living income. ISEAL The program rewards cocoa-farming families not just for the quantity and quality of their cocoa beans, but also for practices that benefit the environment and local community. However, primary data collection can be costly, and time intensive, meaning a quick analysis of actual farmer, method of actual income assessment, Impact Institute adapted, and our own methods for actual income calculation to, rely solely or primarily on information that is readily and. The Living Income Community of Practice (LICoP) is an organisation committed to improving the lives of rural communities. How herb and spices farmers are being supported to earn a decent living from their crops? As Communications Assistant at ISEAL, I recently came across the Anker methodology used by the How to measure living wage: 10 things you should know, Leveraging data and technology innovations, Improving assurance and performance monitoring, Broadening the use of ambitious sustainability systems. Webinarslides: The role of professional farmer groups in delivering living incomes for farmers. GIZ developed a simple tool based on gross margin calculations of a given focus product (crop) to estimate total household income, incl. Living Income Community of Practice. Download the full infographic (PDF, 11Mb). Committee on Sustainability Assessment (COSA), Advisor for Living Income and Living Wage, The Advisory Board liaise with GIZ, Sustainable Food Lab and ISEAL to provide guidance and advice on the activities of the Living Income CoP by highlighting topics of interest, making recommendations on resources and guidance and suggesting topics and speakers for upcoming webinars and other in person events of the, Voice of Organisations in Cocoa (VOICE Network), Advisor M&E for Social Impact, Sustainable Economic Development. Income tax rate is progressive, which means the higher pay you get the higher tax you . ISEAL Alliance has worked for the last months on a pilot study to assess the living income gap for target cotton households from Madhya Pradesh. Competition law, despite protecting consumers from issues such as price fixing, has been found to significantly hamper discussing price when it comes to thinking about improving incomes for impoverished smallholder farmers. Fairtrades three regional producer networks provide programmes and services that strengthen producer organisations to support their farmer members to improve their incomes. It will capture a company's contribution to improving the livelihoods of farmers and fishers through activities aimed at increasing income and resilience. The webinar began with a review of the key concepts and consideration points around income measurement, with a spotlight on the Income Measurement FAQ which has been designed to help LiCoP members understand how to approach measuring smallholder household incomes and the living income gap. Our holistic approach aims to deliver long-lasting impact by incentivizing the enrollment of children in school while advancing regenerative agriculture practices and gender equality. We believe in the power of food to enhance quality of life. Introduction Poorer health outcomes and disproportionate healthcare use in socioeconomically disadvantaged patients is well established. The Green House Presentation by GIZ. We're committed to helping farmers transition to . Introducing Living Wage and Living Income Reference Values. We reflected on some of the key practical points made by speakers in choosing the most effective approach to measuring income, sector advancements across a range of commodities, and discussion outputs on what a Living income approach means for different people in the food and agricultural system. Itdiscusses outcomes of recent studies done by Anna Laven of the Royal Tropical Institute KIT on intra-household dynamics of cocoa farmers in Cte dIvoire and what can be done from a gender perspective in order to reach a living income. It is about earning enough to live a decent life with a buffer for the unexpected. additional income needed to make up for a very small farm plot size, or a large Guidance tool on living wages and living income. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. This website uses cookies to improve your experience while you navigate through the website. We are helping to close the living income gap for cocoa-farming communities. The focus is on the important role of market prices that prevent the farmer to achieve a Living Income and showing how fair prices can be calculated and used, on the basis of grains in Burkina Faso. The gap can be analysed to inform improvement strategies, and we can monitor incomes over time to review progress. The Living Income Community of Practice is an international working group with more than 1600 supporters from the private and public sectors, as well as civil society, standard-setting organizations, science and consulting services. But what happens when one of these essential needs is not available or comes at a particularly high cost? Exploring options for measurement and analysis of living income gaps_ a case study of Madhya Pradesh. Lower Income Tax. All successful businesses have reserves and securities that allow them to survive, and people are more likely to thrive economically when they dont have to worry about just making ends meet. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. This cookie is set by GDPR Cookie Consent plugin. The costs of decent living in local currency increased by 59% and 14% respectively for Ghana and Cte d'Ivoire. Improving the income of cocoa farmers and their families, to enable them to achieve a decent living (in the sense of the "Living Income Community of Practice"), by 2030 at the latest, in collaboration with producer countries; The Compendium also offers a framework of how the sector should tackle farmer poverty; there is a real place for Good Agricultural Practices in achieving a living income, but this is only feasible if the enabling environment of Good Governance and Purchasing Practices are in place. A lot of the income research and guidance currently available is primarily agriculture focused. This cookie is used to manage the interaction with the online bots. really works o improve farmers incomes and to sharing what we learn along the The VOICE Network has published a consultation paper on this topic and this was an opportunity to understand the key points raised in the paper and how the sector can act on this critical component of closing the gap between actual and living incomes. Come here for news, press releases, statements and other multi-media content about Nestl. Here are some of the perks of living in Singapore: 1. YouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data. At the same time, companies with downstream activities capture most of the value added in global agri-food supply chains. Our ambitious program would not be possible without the support and input of our longstanding partners. ALIGN is guiding you through the process. Living Income Community of Practice Guidance on calculating farmer income using secondary data, The Living Income Community of Practice (, organisation committed to improving the lives of rural, themselves to the development of calculation methods for, living and actual incomes/wages and providing advice on how. Fairtrade West Africa Cocoa Programme Monitoring Report, 2nd Ed. The Netherlands, E-mail:info@impactinstitute.com The process builds on the UN Guiding Principles on Business and Human Rights and the OECD due diligence guidance for responsible business conduct. As a guidance tool for agri-food companies, ALIGN is aiming to reduce complexity around the topic of living wage and income. Living income metric in food & agriculture benchmark. The cash incentive is split equally between the male and female head of household to encourage gender equality, share financial responsibilities, and build more resilient households. "Phase 1Apprenticeship Model", the work of Lave and Wenger that investigated the apprenticeship model of learning showed that, rather than the novice apprentices learning from the experienced craftsperson, learning . Alongside IDH (The Sustainable Trade Initiative), ICI (International Cocoa Initiative), the Rainforest Alliance, governments, suppliers, cooperatives and farmers, we will continuously measure, assess and strengthen the program to deliver maximum impact for farming families. Living income is defined as "the net annual income required for a household in a particular place to afford a decent standard of living for all members of that household." Figure 1: breakdown of a living income (Living Income Community of Practice) Even in rural areas with limited infrastructure, I met local Nestl teams who were supporting education, advising cooperatives, and working with farmers to improve growing practices. The implicationsof the models for other sectors around smallholder income improvementis also discussed. This can help them to identify what they should pay for a commodity, to contribute enough income to a household for a viable living income. Its the right thing to do We're accelerating this effort first in cocoa, a crop that requires long-term efforts to address root causes of inequity and child labor risks. Fairtrade is the most recognized and trusted sustainability label in the world. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. How can farmer organizations best provide viable trade and high-quality services fortheir members? In this webinar, we joined the leadership development organization Emerging Leaders to learn about how they work directly with rural communities to focus on mindset change and transferable life leadership skills, and how their programmes release the creative problem solving, entrepreneurial, and proactive skills needed to transform farm productivity and create flourishing, resilient communities. Find answers to some of our most frequently asked questions on the environment, human rights and more. The calculation ofactual income is notoriously difficult, and typically requiresprimary data. Living income benchmarks provide a tangible goal for the improvement of incomes, however measuring and understanding the current income situation of farmers remains a persistent challenge. Going beyond the Fairtrade Minimum Price and Premium, we developed the concept of a Living Income Reference Price. Previously fewer than 18% of farmers maintained these practices, but with program support and incentives, more than 80% did. She looks in particular detail about the Anker living wage methodology and to what extent information generated in calculating living wages with this methodology could be used for living income calculations. The research was done by a consortium of experts from Wageningen University, Socialside Insight, Mars and Oxfam. The webinar then focuses in on one specific pricing mechanisms being used by Oikocredit and partners to train farmer organizations to manage price risk. Healthcare Access: A Tool to Reduce the Income Gap. However, primary data collection can be costlyand time intensive, meaning a quick analysis of actual farmerincomes is unlikely. Several small companies have helped begin this journey for our industry, and improving traceability at scale can bring historic positive change for the industry. A decent standard of living includes food, water, housing, education, healthcare, transport, clothing, savings and funds for unexpected events. Living income should not be a differentiator but standard practice for responsible companies. . PDF Effects from Living in Mixed-Income Communities for Low-Income Families Living income and living wage - nachhaltige Agrarlieferketten During the first webinar of 2023, GIZ invited us to explore three estimation tools: the Living Income Gap Estimator, the Living Income Reference Price Estimator, and the Living Wage Costing Tool. Theobjectives of thisCommunity of Practiceare to: The LiCoP secretariatmanages the day to dayoperations of the community of practice as well as its communication channels. In addition, gender-sensitive strategies to close the living income gap will be discussed based on the experienced opportunities and challenges of an example project in South Western highlands. Companies can close the living income gap by increasing pay, supporting resilience, and tackling inequalities in risks and power. The cocoa sector advances on living income - updates on the floor price & living income differential in West Africa. United Kingdom, ISEAL Alliance 2023. Andrea Rusman from the Impact Institute presents their work to calculate the true price of coffee. With over 15 years of experience Food Lab staff consult companies on sustainable livelihoods strategy, support sector level dialogue and co-host the Living Income Community of Practice, an open learning platform focused on measuring and improving smallholder incomes. It does not store any personal data. Thisfirst webinar focuses on learning and discussing about the living income idea and concept and its added value for income promoting programs. The Living Income Community of Practice has a Technical Advisory Committee (TAC), which writes guidance documents. What is the current status of living income benchmarks in major producing regions? This webinar discussesand presents the Shubh Mint Project, currently in its third year of implementation. Pricing Strategies to close the Gap and the need to consider Supply Management.