An agreement in principle was reached on July 8 in Accra, Ghana, by sixteen cocoa producers to introduce all the necessary tools to guarantee a better income for Ivorian and Ghanaian farmers, who alone produce 60% of the world’s cocoa. With the idea that a better price today is the key to sustainable cocoa tomorrow.
The agreement that was just signed in Accra is a kind of second chance given to an initiative that was launched three years ago but which has not borne fruit.
Priced by Ivorian cocoa and the Ghanaian price consists mainly of the world market price, to which two premiums must be added. One of them, which started in 2019, is paid by manufacturers and amounts to 400 dollars per ton. It is called “decent income differential” or “LID” in English. The second contribution, linked to the origin of cocoa, has for its part collapsed since its introduction: it has even become negative.
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A move that made it possible for operators to take back with one hand what they have given to the other, sums up an expert in the industry.
Towards an economic pact for a sustainable cocoaThis practice was condemned in May last year by Côte d’Ivoire and Ghana. The cocoa giants then promised to introduce a stronger pricing mechanism to guarantee a decent income for planters.
It was within this framework that sixteen producers gathered around the table, with representatives of the two producer countries, to lay the foundations for a future economic pact for a sustainable cocoa.“Industrialists who are always very inclined to communicate about the sustainability of cocoa, but who are often much more reluctant to say out loud that they are ready to pay cocoa farmers more for the beans,” emphasizes one player in the sector.
Manufacturers – including Ferrero, Mars and Nestlé – undertake to honor their commitments to growers.