Cocoa Growing Giants Threaten To Suspend Sustainability Schemes

Barry Callebaut, Nestle, Hershey and Mars reiterated their support and financial commitment to efforts by Ghana and Ivory Coast to combat farmer poverty. Mondelez and Cargill did not respond to a request from Reuters for comment.

Ghana and Ivory Coast, which together produce two-thirds of the world’s cocoa, introduced a living income differential (LID) or premium last year on all 2020/21 cocoa sales and said the proceeds would be used to raise the income of cocoa farmers who earn on average little over $1 a day.

“The (cocoa/chocolate) brands (have) openly announced their commitment to the LID (but) our intelligence indicates there is a ploy by some to derail (it),” Aidoo said.

“Any brand that is seen not to be serious in accepting the LID by mid-December 2020 must consider all its cocoa beans from Ghana and Cote d’Ivoire as conventional. We are prepared to name and shame these brands,” he added.

Ivory Coast and Ghana have struggled to sell forward their 2020/21 cocoa crop since introducing the LID, in large part because the coronavirus-induced recession slashed demand for non-staple foods like chocolate.

Nestle, the world’s biggest food company, said it is paying the LID when buying its “normal volume of cocoa purchases” from Ivory Coast and Ghana, adding it was one of the first to pay the surcharge when it was introduced.

Chocolate makers Barry Callebaut and Mars also said they were paying the surcharge, but did not specify volumes. Hershey said it pays the LID when buying 2020/21 cocoa “based on the needs of our business”.

“While some in the industry are accelerating progress toward a modern, sustainable cocoa supply chain, others are not doing enough and must go further and faster,” Mars said in an emailed reply to Reuters.