Major cocoa buyers have agreed to pay a premium and back a price floor on cocoa sold by Ivory Coast and Ghana as part of an agreement reached on Friday to combat poverty among farmers.
Both countries have struggled to achieve that price target, prompting the Cote d'Ivoire-Ghana Cocoa Initiative to work with the industry on a price mechanism.
"Companies in the cocoa value chain have met with the governments of Cote d'Ivoire and Ghana to renew support for the LID as a starting point towards the pathway to achieving living incomes for farmers," the CIGCI and both countries' cocoa regulators said in a joint statement."What we have signed for today is a better remuneration for planters," De Boussac said.
Yves Brahima Kone, chief executive of the Ivory Coast Cocoa and Coffee Council, said companies had been dragging their feet on LID commitments, hindering efforts to make the industry more sustainable. "The aim of the pact is to allow all actors in the cocoa value chain to play their role and respect their engagements," he said.Reporting by Ange Aboa; Editing by Sofia Christensen, Josie Kao, Bate Felix and Emelia Sithole-Matarise
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