Ghana and Côte d’Ivoire have stepped forward to build up their objective to accomplish a living income for cocoa farmers in the two-driving cocoa-producing countries, by getting a restored responsibility from their multinational cocoa purchasing partners in a meeting held in Accra-Ghana.
Ghana and Cote d’Ivoire laid out the Living Income Differential (LID), as a component of a new cocoa trading instrument to guarantee that each huge amount of cocoa beans sold by the two nations draws in an extra $400.00 which is paid to farmers. The goal was to accomplish an objective floor cost of $2,600/MT, of which at least 70% ($1,820/MT) goes to the farmers.
Cocoa Farmers Can Now Have Access To Their Rehabilitated Farms
Within its three years of implementation a combination of a persistently low price of cocoa on the international market and the adoption of various mechanisms by multinational cocoa buying companies to undermine the effect of the LID, particularly through the discounting of country origin differentials (for the quality of beans), has reduced the inflows realised by the producing-countries and ultimately, farmer incomes.
On Friday, eighth July 2022, an undeniable level meeting with senior leaders of the global cocoa purchasing organizations, chocolate producers, dealers and processors was held in Accra at the event of the Côte d’Ivoire – Ghana Cocoa Initiative (CIGCI) and supported by the governments of the two nations.
Mr Alex Arnaud Assanvo, the Executive Secretary of CIGCI, said it was important for all stakeholders to appreciate how actions taken on the market impact directly on the welfare of farmers and on the collective agreement to ensure sustainable cocoa production. The buyers, he insisted, must go beyond just agreeing in principle to improve farmer income and also act towards its attainment.
The Chief Executive of Ghana Cocoa Board (COCOBOD), Mr Joseph Boahen Aidoo, stated that:
“To have a sustainable cocoa industry, it is imperative that we bring into focus the farmer, who is at the centre stage of whatever we do. Once the cocoa farmer is weakened, the entire chain will collapse,” he cautioned. “For us, we believe that the Living Income Differential was to let the farmer get a just share, not just a fair share, but a just share, of the price of cocoa on the international market.”
Mr Ibrahim Kone Yves, the Director-General of Le Conseil Du Café-Cacao (CCC), also pointed out the need for all stakeholders to work together to address challenges which impact the cocoa industry. He emphasised the need to strengthen the LID as a mechanism which ensures that the price paid to cocoa farmers is reasonable and within the framework of sustainability.
At the end of the meeting, the senior executives who represented the multinational cocoa buying companies, chocolate makers, traders, processors and the governments of Ghana and Côte d’Ivoire signed a joint statement of intent toward an economic pact for sustainable cocoa. The pact opens a path to develop proposals for short, medium, and long-term actions to strengthen current efforts to attain living incomes for cocoa farmers in the two countries.
The companies that signed the joint statement at the end of the meeting were Barry Callebaut, Blommer, Cargill, ECOM. Ferrero, GCB cocoa, Hershey and JB cocoa. The others were Mars, Mondelez, Nestle, Olam, Puratos, Sucden, Tony’s Chocolonely and Touton.
