Browsing: cocoa premium payments

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Cocoa and Chocolate companies have been asked to pay more in premiums. The move which is being spearheaded by Ivory Coast and Ghana is aimed at supporting cocoa farmers’ wages.

The implementation of high premiums may however, take little longer bearing to the economic effects that have been brought about by the Covid-19 pandemic.

Head of Ivory Coast’s Coffee and Cocoa Council (CCC) Yves Kone acknowledged that the countries have limited leverage to force the hands of companies suffering from a fall in global demand due to the pandemic.

Ivory Coast and Ghana, which together produce about two-thirds of the world’s cocoa, introduced a $400 per tonne premium this season termed the living income differential (LID) to increase wages for farmers, many of whom live in poverty.

But Ivory Coast was forced to repeatedly slash a separate quality premium that exporters pay, known as the country differential, in response to …