Ghana and Ivory Coast have agreed to sell cocoa exports at an additional income premium of $400 per tonne. The world\’s biggest leading exporters of the cash crop have hammered out a plan with global chocolate producers to implement the new price policy with the goal of lifting farmers out of poverty.
The West African neighbours supply two-thirds of the worlds cocoa, but the volatility of the crop\’s price leaves farmers with no choice than to accept lower prices. French chocolate maker Cemoi has already confirmed it will be paying the additional $400 per tonne to its Ivorian suppliers. Traders have, however, expressed concerns the deal could backfire if surplus produce drives down prices.
Called the living income differential sum, the agreement aims to eradicate poverty among cocoa farmers and is set to take effect from next year.
