Barely a week after it suspended the cocoa sustainability schemes of chocolate manufacturer, Hershey, the Ivorian government has reversed the decision.
The decision came after Hershey agreed to pay premium prices to cocoa farmers.
Ivorian and Ghanaian governments had suspended the schemes by Hershey after it appeared the company was sourcing for cocoa from the ICE exchange.
The Ivorian government had set up a Living Income Differential (LID) to protect farmers from poverty.
Hershey, producers of Hershey’s Kisses and Kit Kat chocolates restated its commitment to the LID.
Ivory Coast and Ghana produce more than 40% of the world’s total cocoa.
Last year, the Ghanaian and Ivorian governments set the LID for cocoa at $400 a tonne. This is to ensure that farmers make as much money as possible but the harsh realities of the coronavirus pandemic have dealt sales a huge blow.
“The Cocoa Merchants Association of America (CMAA) is condoning and conniving with American companies against poor West African cocoa farmers”, regulators in both countries said.