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The towel burns between Abidjan-Accra and the cocoa multinationals

20/11/2020
Source : Commodafrica
Categories: Economy/Forex

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On the sidelines of the virtual meeting (it was initially planned in Bogota, Colombia) of the partners of the World Cocoa Foundation (WCF) which was held yesterday and the day before yesterday, the boss of Ghana's Cocobod, Joseph Aidoo, raised the tone.

The reason for this “outburst”? The large groups have officially accepted the living income differential (LID) of $400 per ton of beans leaving Côte d'Ivoire and Ghana as of October 1, but would do everything, in fact, to avoid pay it and undermine the mechanism (read our information: New pressure from Côte d'Ivoire and Ghana on the cocoa market?). Consequently, there is no question of these groups boasting to consumers that they are defending the sustainability of the sector and the well-being of planters and making them pay more for chocolate.

“The (cocoa/chocolate) brands have openly announced their commitment to LID (but) our intelligence indicates that some are deploying schemes to derail it,” says Joseph Aidoo. “Any brand that is not serious about accepting LID in mid-December 2020 should consider all beans sourced from Ghana and Ivory Coast as conventional. We are ready to name and shame these brands. »

The industry affirms its good faith and adherence

On this subject, in his opening address to the meeting on Wednesday, WCF President Richard Scobey was clear: "The industry has always been very clear in supporting the living income differential policy that Côte d'Ivoire and Ghana introduced in July 2019 as part of a strategy to raise producer income. Our member companies have independently and voluntarily incorporated LID into their individual sourcing plans for the 2020/21 campaign. »

“The Cocoa Coffee Board and the Ghana Cocoa Board have recently raised some concerns regarding the decline in cocoa purchases and the implementation of the LID during the last months of the COVID pandemic,” he continued in his speech. “There is no doubt that we are all facing a difficult cocoa market. More than ever, it is essential that industry and governments engage in a constructive dialogue on how to protect farmers' incomes at a time of reduced global demand, continued market uncertainty and a 2019/20 market surplus according to the latest ICCO forecasts."

And Richard Scobey to recall that there is not the only component of the producers which must be taken into account in this cocoa file. ""These are real and complex issues - we need to come together and discuss within the confines of antitrust law how to manage risk and volatility in this challenging market, and how we can most effectively maximize farmers' long-term income. ."

"As we focus on increasing farmers' incomes, we also need to ensure that cocoa is grown responsibly. As the Council and Cocobod stated a year ago at our last meeting partners in Berlin, “the LID and the sustainable development programs would coexist and complement each other”.

LID and durability complement each other

"We continue to believe this is the right approach. LID and the company's sustainability programs are both essential and mutually reinforcing - two sides of the same coin. We cannot guarantee the long-term sustainability of the sector without farmers receiving fair remuneration for their harvest.Similarly, a long-term increase in farmers' remuneration must come from responsible cocoa production, paying particular attention to the work of children, deforestation and long-term stable management on the supply side.”

“Corporate sustainability programs play a critical role in increasing farmer incomes, ensuring a responsible supply chain and accelerating the achievement of the Sustainable Development Goals. These programs directly help nearly 700,000 farmers and their families, i.e. around 45% of all cocoa farmers in Côte d'Ivoire and Ghana,” said Richard Scobey.

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