Ivory Coast says chocolate traders failing to pay farmers

ABIDJAN: Major chocolate traders in Ivory Coast are failing to pay a $400-per-tonne premium on beans aimed at curbing farmer poverty, the country’s cocoa regulator said in a draft letter seen by Reuters on Friday.

The Coffee and Cocoa Council (CCC) said companies including Mondelēz International, Inc. were offsetting the Living Income Differential (LID) by offering a negative country differential – normally a premium of 70 to 150 pounds ($99-$212) per tonne to reflect the quality of Ivory Coast’s beans. Buyers have been pressing for the country differential to be turned into a country discount, so farmers receive the extra cash but prices stay globally competitive. “In recent weeks, when we have seen an upturn in economic activity and therefore in demand, the major groups have refused to pay the LID,” CCC said. The world’s top cocoa producer has been locked in talks with exporters over the price of its beans as a bumper crop and weak global demand caused by the coronavirus pandemic, coupled with the introduction of the LID, pushed down sales.