Support mechanisms to end poverty in cocoa growing areas – Agric Minister

The Chairperson of the Steering Committee of the Ghana-Côte d’Ivoire Cocoa Initiative, Dr Owusu Afriyie Akoto, has urged cocoa-growing communities to support the initiative to end poverty in those countries.

One such intervention is the Living Income Differential (LID) introduced by both countries to support the cocoa sector.

The initiative aims to combat the widespread farmer poverty in the two West African countries, which together produce more than 60% of the world’s cocoa.

According to the International Cocoa Initiative, Africa’s cocoa farmers live in extreme poverty, with net incomes pegged between USD$983.12 to USD$2,627.81 annually, translating to a daily wage between 40 and 45 cents.

The initiative, which was introduced in July last year on all cocoa sales for the 2020/21 season, is expected to reverse this situation.

With their dominance as global cocoa producers, Ghana and Cote d’Ivoire seek to make a fundamental change to the structure of global markets to ensure rural producers receive a better living income.

Even though farm gate prices (the prices received by producers at the location of their farms) were increased in October 2020, the implementation of the LID has faced several challenges.

This includes the decreasing global demand for cocoa and suggestions that certain buyers are trying to circumvent the LID.

Speaking at the maiden meeting of the committee in Abidjan on Monday, where he was elected as the first Chairperson, Dr Akoto indicated that there had been a slow pace to the achievement of the LID by some participants.

He charged the meeting participants to ensure that all parties share the burden of compliance with the dictates of the initiative.

He said this was the only means to achieve the vision of both President Akufo-Addo and his Ivorian counterpart, Alassane Ouattara, regarding the initiative.

The meeting, which was attended by all Steering Committee members, also had the Chairman of the Food and Agriculture/Cocoa Affairs Committee of Ghana’s Parliament, John Osei Frimpong and his ranking member, Eric Opoku, delegation of senior Ivorian government officials present.

The Minister for Food and Agriculture, Dr Akoto, was unanimously elected by the two countries to serve for the next fifteen (15) months.

His Chairmanship would span the rest of the current cocoa season, ending in September 2021 and continuing until the end of the next cocoa season in 2022.

The Steering Committee is the highest decision-making body of the initiative.

It is responsible for formulating rules and regulations, ensuring the smooth implementation of the charter and functioning of the Secretariat.

 

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Following the introduction of the LID, the President, Nana Addo Dankwa Akufo-Addo, announced a 28% hike in the producer price of the commodity.

With the new increase, a tonne of the key chocolate ingredient would be bought by the government from the farmer at GHc10,560 per tonne, compared to GH₵8,240 for the recently ended 2019/2020 cocoa crop season.

This increment in the farm gate price is solely on account of introducing the $400 per tonne Living Income Differential.

The amount was proposed by Ghana and Ivory Coast and agreed upon by cocoa buyers and chocolate manufacturers.

This is to offer a decent improvement in the living standard of thousands of poverty-stricken cocoa farmers in the two West African countries.