Major cocoa farmers in the world are insisting that chocolate manufacturers, valued at $100 billion, pay a premium specifically designed to enhance the livelihoods of West African farmers, despite the current decline in consumption. The neighboring countries of Ivory Coast and Ghana, which produce about 70% of the world's cocoa, have secured an increase in wages for farmers by imposing fees on companies ranging from "Cargill" to "Nestlé," with a premium of $400 per ton effective from the start of the current agricultural season.
After months of implementing the new pricing rules, regulators in West Africa have accused some companies of backtracking on this commitment.
Supporting Farmers
Alex Assanfo, the executive secretary of the Cocoa Initiative in Ivory Coast and Ghana, said at an oath-taking ceremony in Abidjan, which is the Ivorian commercial center: "We need to lift cocoa farmers out of poverty. This is non-negotiable, and we will be firm."
The former director of the American food giant "Mars Wrigley" will lead an organization that formalizes the collaboration of major producers to influence cocoa prices and trading standards. The so-called "living income differential" came into effect on October 1, after the pandemic shut down cities worldwide, harming demand and diminishing the bargaining power of producing countries.
Assanfo stated: "The health crisis caused an economic slowdown and a reduction in consumption, making the market more hesitant. However, we will continue to work hand in hand to achieve our goals."
Joseph Boahen Aidoo, the CEO of the Cocoa Board in Ghana, told reporters after the ceremony that companies are undermining the implementation of the "living income differential," adding: "While they pay the differential with their right hand, they take the money back with their left hand by not paying the imposed premium in the country." These remarks came a week after Ivorian regulatory authorities threatened to begin calling companies involved in such practices.
