Understanding the issues related to sustainability bonuses
Premiums associated with sustainability programs (Fairtrade, Rainforest Alliance, or other premiums) are paid to cooperatives in addition to the price of agricultural products. They can then be redistributed directly to producers or used to finance development projects.
Managing these bonuses is complex. A gap can arise between the expectations of cooperatives' partners and clients regarding documentation and reporting on the use of bonuses, and the guarantees provided by these cooperatives. Our missions aim to improve the quality of information exchange between the supply chain actors, guarantee the transparent use of bonuses, and limit the risks of fraud.
Contact usSupport tailored to each use of the bonus
We offer missions combining fieldwork, interviews with producers, and document checks, in order to verify the use of premiums and to support cooperatives in improving their premium management.
Premiums paid to farmers
Verify that the planned amounts have actually been distributed to the producers concerned.
Development projects
Ensure that projects are funded and carried out in accordance with the decisions made and the defined premium plans.
Project implementation monitoring
Monitor, on the ground or remotely, the proper execution of funded projects and report on their progress.
Case study / service example
Verify that sustainability premiums payment to farmers.
Methodology
Document and field verification
- Review of the premium management processes of the cooperative
- Control of the financial flow from the exporter to the beneficiaries
- Reconciliation between cocoa volumes delivered and premiums received
- Interviews with a representative sample of farmers and thorough verification of proof of payment of their premiums
Results / Deliverables
- Conclusions on the payment of the premium to producers according to the partner's requirements
- Recommendations for improving the cooperative's processes
- Optionally, a qualitative assessment of the cooperative's governance and communication with farmers.
Let's talk about your needs
Our teams will study your situation and support you.
Contact usOur JLB Sustainability services
Traceability and EUDR compliance
Supporting stakeholders in the supply chains in understanding regulatory requirements, ensuring data reliability and managing their due diligence system.
Verification of sustainability bonuses
Verify the management of sustainability premiums by cooperatives, for payments to producers as well as for the implementation of development projects, and support the improvement of practices.
Structuring and implementing a sustainability approach
Helping stakeholders in the supply chains to define, deploy and monitor sustainability projects or standards adapted to their operational realities and objectives.
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