What is the Living Income Roadmap?

IDH’s Living Income Roadmap helps companies to take ambitious and aligned actions to improve incomes and close living income gaps of farming households. It is a framework that outlines a range of steps, guiding questions and data-driven tools designed to be dynamic and used simultaneously. It highlights the need to use comparable data, engage in multi-stakeholder partnerships and take immediate action.

To act on living income, companies should follow these five steps outlined in our Living Income Roadmap:

  1. Identify the Living Income benchmark: A solid foundation, ensuring internal alignment and understanding of living income in priority areas.
  2. Assess the Living Income gap: Data to identify the living income gap and income drivers.
  3. Verify the calculations: Uniformity and stakeholder alignment in how living income gaps are calculated.
  4. Close the gap and track progress: Practical multi-stakeholder solutions to remove barriers and close living income gaps.
  5. Share learnings: Access to data and best practices to facilitate learning on how gaps can be reduced over time.

IDH works towards better incomes for smallholder farmers across different sectors and landscapes

IDH believes that stakeholders need to change their own behaviour (e.g., business practices) at various levels, i.e., national, landscape and sector. IDH developed the Living Income Roadmap, incorporating practical tools and a procurement lens. We also bring partners together under this Roadmap to drive collaborative action.

Partnerships

The Living Income Roadmap is managed by IDH with support from a Steering Committee:

The Living Income Community of Practice (LICOP) has provided essential leadership and resources. IDH leverages LICOP’s work and that of its member organisations into this Living Income Roadmap, integrating LICOP’s guidance documents and tools with its own. IDH is a member of the LICOP Strategic Advisory Committee and LICOP Technical Committee.

Through the Living Income Roadmap community and in program coalitions, IDH collaborates with many companies and organisations, such as the Mars/Farmer Income Lab (FIL), focusing on inspiring transformation in businesses’ procurement practices to contribute to closing living income gaps. FIL, a “think-do” tank, supports companies in addressing poverty in agricultural supply chains. IDH and FIL believe innovative procurement practices are an important element of the smart-mix interventions for smallholders to reach a living income.

 

Living Income Roadmap Toolkit

Income Measurement Guidance (IMG) tool

The Income Measurement Guidance (IMG) is an Excel-based platform for collecting primary data. It facilitates customised survey generation, offering users the flexibility to choose between primary and secondary data sources, adopt detailed or lean approaches to data collection, and cover six key commodities (Cocoa, Coffee, Tea, Spices, Cotton and Banana). Additionally, it guides income calculation, provides intake forms for contextualisation, and offers a generic survey option for additional commodities.

  • Harmonisation of methodologies: Harmonise income data collection methodologies for six key commodities (Cocoa, Coffee, Tea, Spices, Cotton and Banana) under one platform.
  • Integration of best practices: Integrate best practices from existing survey methodologies (e.g., CHIS methodology for Cocoa, DIASCA workstream, LICOP guidance documents and IDH’s Farmfit PDC library).
  • Comparability: Allow comparability within and across different sectors and regions to support strategic decision-making and resource efficiency in data collection and learning.
  • Resource efficiency and flexibility: Improve resource efficiency and flexibility for users by providing the option to integrate primary and secondary data sources.
  • User-friendly interface: Provide an easy and interactive user interface, facilitating more strategic discussions and engagement opportunities among stakeholders involved.
  • Periodic upgrades: Allow periodic upgrades to fine-tune existing surveys, add new commodities and adopt new methodologies. And explore collaborative development opportunities with key LICOP partners.

 

Income Driver Calculator (IDC)

The Income Driver Calculator (IDC) is a data-driven decision support tool that allows organisations and practitioners with living income ambitions to:

  • Assess the living income gap,
  • Measure the impact of each income driver,
  • Build scenarios on specific interventions and
  • Analyse the impact of the interventions on the living income gap.

Are you interested in learning more about our IMG tool or IDC? Please contact livingincome@idhtrade.org for more information.

Procurement lens

Procurement, positioned at the heart of supply chains, catalyses transformation. Its evolving role extends to becoming a cornerstone of companies’ sustainability strategies. By redefining procurement practices, we can ensure equitable distribution of value and risks – cultivating a robust and sustainable agricultural sector.

IDH introduced five core principles towards sustainable procurement:

  1. Longer-term purchasing arrangements
  2. Improved payment terms and higher (farmgate) prices
  3. Develop and deepen equitable supply chain relationships
  4. Improve efficiency and enhance transparency
  5. Reduce volatility and risk for farmers

Why Living Income matters for your business

There are real incentives for businesses to integrate living income within your supply chain, across human rights, reputation and supply security.

 

Find out more in this short video

Living Wage & Living Income Summit

The Living Wage & Living Income Summit is on June 26, 2024, will you be there?

To make real strides we need the vast majority of stakeholders to take up their shared responsibility. We need to debate how best to benefit from recent milestones achieved by organisations like the ILO and the EU. We need to foster dialogue and share practical insights on what works when it comes to closing of living wage and income gaps. We need to share different perspectives from the supply chain on these topics.

Take part and join us at the Living Wage & Living Income Summit. You’ll be welcomed alongside 400 guests from a range of private sector and public sector stakeholders, including producers, buyers, unions and more. We can create deeper and more cohesive change together.

The Living Wage Summit is organised together with GIZ and with support from the UN Global Compact

Check the website for more information

For more information contact us: