CORRECTED-UPDATE 1-Ivory Coast, Ghana add 'living income' cocoa premium to fight poverty [Reuters]
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Source: Reuters
CORRECTED-UPDATE 1-Ivory Coast, Ghana add 'living income' cocoa premium to fight poverty (Corrects JULY 10 story to removes Olam from list of chocolate makers in paragraph 4) By Ange Aboa and Maytaal Angel ABIDJAN/LONDON, July 10 (Reuters) - Top global cocoa producers Ivory Coast and Ghana have imposed a fixed “living income differential” of $400 a tonne on all cocoa contracts sold by either country for the 2020/21 season, an official letter seen by Reuters shows. The premium, which replaces an earlier proposal for a floor price for cocoa contracts, is part of a wider plan to combat poverty among farmers in Ivory Coast and Ghana, which together account for more than 60% of global supply. Cocoa from Ghana and Ivory Coast already trades at substantial premiums to the futures market due to its quality. Chocolate makers including Mars and Hershey’s told Reuters they support efforts to relieve farmer poverty, but traders said the plan could lead to surplus production and might eventually p
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