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Africa's cocoa growers retaliate against Hershey for sourcing through New York market

The $400 Living Income Differential was to help improve African farmers’ income.

Cocoa growers from Ivory Coast and Ghana have hit back against Hershey for sourcing beans through the New York market by suspending all its sustainability efforts and canceling all of the programs it is involved with directly or indirectly.

According to Ivory Coast and Ghana, Hershey directly sourced a large amount of cocoa through the ICE Futures US exchange instead of buying in the physical market to avoid the $400 Living Income Differential (LID) they charge.

The premium was to help improve farmers’ income.

The countries also accused Chicago-based cocoa processor Blommer Chocolate Co., of collaborating with Hershey.

Yves Kone, managing director of Ivorian regulator Le Conseil du Cafe-Cacao, and Joseph Boahen Aidoo, chief executive of the Ghana Cocoa Board, emphasized that the LID was put in place to protect Ivorian and Ghanaian farmers who have been on the losing end in the global cocoa supply chain.

Kone and Aidoo further stated that the conspiracy and machinations by Pennsylvania-based Hershey to evade the payment of the LID demonstrates its passive commitment to improving the livelihood incomes of three million West African cocoa farmers.

Failure to comply with the order would lead to a revocation of licenses
to operate in the two countries.

The regulators also withdrew from the industry group Cocoa Merchants’ Association of America for “condoning and conniving with American companies against poor West African farmers” and are reviewing their membership to the Federation of Cocoa Commerce in London.

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