Global Cocoa Marketing Companies refuse to pay realistic Cocoa prices- CGCI

April 23, 2024
Global Cocoa Marketing Companies refuse to pay realistic Cocoa prices- CGCI

Mr. Alex Asanvo, the Executive Secretary of the Cote d’Ivoire Ghana Cocoa Initiative (CGCI), has criticized global cocoa marketing companies for their failure to pay realistic prices to farmers and producers. Speaking at the World Cocoa Conference in Brussels during a panel discussion on smallholder farmer income, Asanvo highlighted the discrepancy between prevailing cocoa prices quoted by global news cables and the prices actually paid to farmers.

He lamented that despite the increasing prices of cocoa on the global market, buyers have consistently exploited the market to their advantage, leaving farmers and producing countries marginalized in an inequitable trade regime. Asanvo emphasized that farmers and civil society groups are demanding that buyers apply a $10,000 price benchmark to reflect current market trends.

This demand has put pressure on governments in producing countries to adjust domestic pricing, which often does not align with international market figures. Asanvo underscored the lack of trust, consistency, and stability among stakeholders in the global cocoa value chain, which hampers the effective implementation of policies and programs aimed at benefiting farmers.

He questioned whether initiatives like the Living Income Differential (LID) have truly served their purpose, acknowledging criticisms and weaknesses but asserting that they continue to target a floor price to ensure farmers receive a living income. Asanvo stressed the need for accountability and transparency from all stakeholders, advocating for consistency in sustainability efforts and the mainstreaming of living income across sustainability regulations.

Furthermore, he called for stable and predictable market forces to guarantee a living income for farmers, highlighting the necessity of a dedicated mechanism to deliver a predictable floor price regardless of fluctuations in terminal market prices. Asanvo urged companies to be more accountable and transparent, emphasizing that sustainable cocoa production cannot be achieved without ensuring farmers receive a living income.

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