Chocolate makers agree to pay USD 400 premium on cocoa price
Chocolate makers have agreed to pay the USD 400 living income differential (LID) on cocoa price sought by Ivory Coast and Ghana, CEEMarketWatch reported referring to a statement issued by the two countries' cocoa regulators.
The premium, to be added to the cocoa price, aims to secure a minimum income for farmers in the African countries and to improve their welfare. Initially, the move was met with mixed feelings by sector companies because of the lack of clarity about its implementation. However, they expressed interest in the new mechanism as they acquired their cocoa contracts for the 2020/2021 crop.
The Ivory Coast expects it's cocoa production for the 2020/2021 season to be about two million tonnes, CEEMarketWatch notedOriginal source: CEEMarketWatch