(5 minutes read)
· Cocoa farmers in Ivory Coast and Ghana this year also have to forego a fair price for their produces because two American chocolate companies – Hershey and Mars- have reneged their promise to raise prices by US$400 million per ton for Cocoa
· More than 70% of the world’s cocoa production is contributed by four West African countries- Ivory Coast, Ghana, Nigeria and Cameroon. The Ivory Coast and Ghana are the two largest producers of cocoa
· Both countries accuse chocolate manufacturers of adopting uncanny strategies to circumvent the new scheme that is designed to ensure better income to the farmers.
Cocoa farmers in Ivory Coast and Ghana this year also have to forego a fair price for their products because two American chocolate companies – Hershey and Mars- have reneged their promise to raise prices by US$400 million per ton for Cocoa. Both countries have accused the strategy of the chocolate majors to keep the cocoa farmers poor and vulnerable.
Earlier, both Hershey and Mars pledged to pay premiums of US$400 per ton of Cocoa under a mutually agreed upon arrangement called the decent income differential. Implicit in that arrangement is a conscious effort to improve the lives of cocoa farmers, who are reeling under poverty and destitution being buffeted between multinational chocolate companies, traders and middlemen who act in concert for realizing their vested interests.
More than 70% of the world’s cocoa production is contributed by four West African countries- Ivory Coast, Ghana, Nigeria and Cameroon. The Ivory Coast and Ghana are the two largest producers of cocoa, Together they cultivate more than half of the world´s cocoa. The other cocoa producing countries are Indonesia, Nigeria, Cameroon, Brazil and Ecuador. Almost 90% of the cocoa production worldwide takes place in small farms measuring between 2 and 5 hectares and only 5% in large plantations measuring over 40 hectares. It provides livelihoods for over 50 million people. The crop has special significance to Ghana and Ivory Cost since 90% of the farmers are dependent on cocoa for their livelihood.
There is a cocoa politics that is upending now amongst the stakeholders. The cocoa grown in West Africa countries, when it is finally converted into the end product –chocolate- the price variation euphemistically called as value addition is huge. Most of the chocolate manufacturing companies and the sourcing agents of cocoa (traders) are based abroad and they are reportedly making huge profits, while the poor farmers have to satisfy with pittance.
Cocoa has been the focal points for differences between producers and end –users. There were attempts from the cocoa producing countries’ governments to support the farmers by collecting the beans and selling to the buyers bidding highest prices. Some countries like Ghana and Ivory Coast have set a benchmark price together, below that the sale was not to take place. But so far, such bail-out plans have not paid off and the farmers continue to be at the receiving end.
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The Ivory Coast and Ghana have accused Hershey Co., maker of Kisses, Reese’s and other chocolate treats, of trying to skirt around the US$400-a-ton premium they’ve slapped on cocoa to help the farmers to realize a better price. Both countries accuse chocolate manufacturers of adopting uncanny strategies to circumvent the new scheme that is designed to ensure better income to the farmers.
