Last year Hershey’s caused outrage among the African cocoa-producing countries, and indeed the farmers and their supporters, when they purchased cocoa directly from the exchange which allowed them to avoid paying the newly implemented Living Income Differential levied by Côte d’Ivoire and Ghana.
At that time Mars strongly refuted allegations made to regulators that it was also involved in attempts to evade the premium. Now, in a recent statement, the company has formally announced they will continue to embrace the LID, committing the company quite visibly to support it, and while at it, encouraging others to do the same.
On 4th May, the company wrote in a press release.
That’s why in 2019, Mars Wrigley became the first chocolate company to publicly support the Living Income Differential (LID), a fee enacted by the governments of Cote d’Ivoire and Ghana to help alleviate farmer poverty. And through our Cocoa for Generations strategy, ongoing support for the LID, and disclosure of our progress publicly, we remain focused on the critical issues that need to be addressed for cocoa farming families to thrive and be sustainable – most urgently, through support of the LID and supply chain transparency.
The company attached two reports under their Cocoa for Generations initiative. The first Reshaping the Future of Cocoa and the second Respecting Human Rights in the Supply Chain. Both delivered in 2020.
Mars says transparency is one of their watchwords, and in reviewing their reports, we can see this is supported by the specific numbers provided. For example, the CLMRS deployed in Côte d’Ivoire and Ghana now covers 70% by volume vs 51% in 2019.
It’s also good to see an unambiguous statement of support. The Cocoa farmers shouldn’t have to fight to get a fair price for a crop that creates so much profit further along the value chain.
