Ivory Coast, the world’s leading cocoa producer, is taking steps to combat fraud in its fairtrade cocoa market.
The Coffee and Cocoa Council (CCC), the country’s market regulator, announced plans to curb the practice of manipulating certifications to inflate cocoa prices.
“The situation has become untenable,” said Yves Brahima Kone, managing director of the CCC.
The regulator raised concerns after a surge in fairtrade certifications, with 97% of the country’s cocoa now supposedly certified – a figure Kone considers highly suspicious.
Fairtrade certification allows cocoa farmers to receive a premium for their product, promoting ethical and sustainable farming practices.
However, Kone alleges some buyers and cooperatives are exploiting the system to pressure multinational companies into paying higher prices.
With fairtrade certification, buyers typically receive a 200 CFA franc premium on top of the government-guaranteed minimum price.
The CCC is considering a drastic measure to address the issue: limiting the number of licensed cocoa buyers from over 1,000 to just 30.
This proposal has been met with resistance from buyers and cooperatives who argue for a different solution – increasing the buyers’ margin from 80 CFA francs per kilogram to 200 CFA francs.
They claim the current margin is insufficient to cover their costs.
The regulator is currently evaluating both options, with Kone acknowledging the possibility of raising the buyer margin.
This move could incentivize legitimate buyers while deterring those seeking to exploit the fairtrade system.
The situation in Ivory Coast highlights the complexities of ensuring fair prices and ethical practices in the global cocoa trade.
Balancing the interests of farmers, buyers, and consumers requires a multi-pronged approach, and the success of the CCC’s new measures remains to be seen.
