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    A worker handles wheat delivered to a milling facility in Chouf, Lebanon. Pic: Hasan Shaaban/Bloomberg

    Bank of America: Food shocks will destabilise ESG

    "World leaders should see hunger as a global problem urgently requiring a global solution"

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    Pollutants cited by the researchers as increasing obesity include BPA, which is widely added to plastics. Photograph: Jonathan Brady/PA

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    Ukraine could lack seeds for grain crops for years

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    Grains of wheat pictured at a mill in Beirut, Lebanon, March 1, 2022. REUTERS/Mohamed Azakir

    IMF, World Bank, WFP and WTO urge coordinated action on food security

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    "World leaders should see hunger as a global problem urgently requiring a global solution"

    The Economist: The coming food catastrophe

    Pollutants cited by the researchers as increasing obesity include BPA, which is widely added to plastics. Photograph: Jonathan Brady/PA

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    President Joe Biden has called for ideas to help end hunger

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Ivory Coast, Ghana push to boost cocoa payments

Ivory Coast forced to repeatedly slash a separate quality premium in response to weak sales

by May Davies
May 14, 2021
in In the news, Business
Reading Time: 2 mins read
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Ivory Coast, Ghana push to boost cocoa payments

Farmer drying cocoa beans in the Ashanti region of Ghana. Pic: King Bangaba

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Ivory Coast and Ghana asked cocoa and chocolate companies last week to pay more in premiums to support farmers’ wages, the head of Ivory Coast’s industry regulator told Reuters on Thursday.

However, Yves Kone, the head of Ivory Coast’s Coffee and Cocoa Council (CCC), acknowledged that the countries have limited leverage to force the hands of companies suffering from a fall in global demand due to the Covid-19 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 weak sales.

n February, the CCC turned the premium into a more than $350-per-tonne discount, mostly cancelling out the LID. Ghana has also lowered its country differential.

“Because they cannot attack the LID, they prefer to attack the country differential, which amounts to exactly the same thing,” Kone said in an interview. “We asked them to stand down.”

Kone said he expected talks to resume in the coming weeks, adding that a country differential of around $140 dollars would allow Ivorian authorities to pay farmers a good price during the upcoming 2021/22 season.

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May Davies is a founding contributor to Quota. She is a freelance writer specialising in food systems delivered by the business and policy sectors. Contact MayDavies@quota.media.

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