Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Read more
Sign In
June 19, 20213:20 AM PDTLast Updated a month ago
Ivory Coast says chocolate traders failing to pay farmers living wage premium

3 minute read
A farmer prepares to collect a cocoa pod at a cocoa farm in Alepe, Ivory Coast December 7, 2020. REUTERS/Luc Gnago
ABIDJAN, June 18 (Reuters) - 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(MDLZ.O) 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.
Mondelēz said it was paying the full LID. "(Mondelēz) does not offer or have any influence over negative country differentials," the company said in a statement to Reuters.
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. read more
"(We will) stop all the sustainability and certification programs of Mondelez that are ongoing with Cargill, and all the other exporters," said an official at CCC who asked not to be identified.
In November, Ivory Coast and Ghana suspended Hershey Co's (HSY.N) cocoa sustainability schemes in their countries for six days, accusing the U.S.-based chocolate maker of trying to avoid paying the LID.
"Unlike Hershey, this time we are going to be tough on chocolate makers who want to bypass the LID. For us this is unacceptable," the CCC official said.
Reporting by Ange Aboa in Abidjan Writing by Hereward Holland Editing by Matthew Lewis
Our Standards: The Thomson Reuters Trust Principles.
More from Reuters
Play video on original page

Read Next
Aerospace & Defense
Israel's El Al starts flights to Morocco after improved diplomatic ties
3:14 AM PDT
At least six Cameroonian soldiers killed in raid by Islamist insurgents
12:21 AM PDT
French citizen among six held over plan to kill Madagascar president -minister
July 24, 2021
Sierra Leone parliament votes to abolish death penalty
July 23, 2021

Sign up for our newsletter
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
Africa · 3:14 AM PDT
Israel's El Al starts flights to Morocco after improved diplomatic ties
El Al Israel Airlines (ELAL.TA) on Sunday launched nonstop flights to Marrakesh from Tel Aviv following a resumption of diplomatic ties last year between Morocco and Israel.
Ethiopian parents appeal for help to evacuate students stranded by Tigray war
July 23, 2021
Sierra Leone parliament votes to abolish death penalty
July 23, 2021
French citizen among six held over plan to kill Madagascar president -minister
July 24, 2021
Chemicals in burnt S.Africa warehouse caused "considerable" environmental damage -authorities
July 23, 2021

About Reuters
About Reuters
Reuters News Agency
Brand Attribution Guidelines
Reuters Leadership
Reuters Fact Check
Reuters Diversity Report
Stay Informed
Download the App
Information you can trust
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Follow Us
Thomson Reuters Products
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Refinitiv Products
Information, analytics and exclusive news on financial markets - delivered in an intuitive desktop and mobile interface.
Refinitiv Data Platform
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
Advertise With Us
Advertising Guidelines
Terms of Use
Site Feedback

All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved