Indebted Ivory Coast Farmers by Ange Aboa of Rueters Africa

Indebted Ivory Coast cocoa farmers unable to prepare for next season

By Ange Aboa-Reuters Africa

SOUBRE, Ivory Coast Feb 13 (Reuters) - A wave of defaults by cocoa exporters in top producer Ivory Coast has left farmers with unsold beans, indebted and unable to purchase fertiliser and pesticides to prepare their plantations for next season's harvest.

Cocoa has piled up at the ports for weeks and has been left to rot on trees as exporters, having wrongly speculated that world cocoa prices would extend years-long gains, declined to purchase beans to fill unprofitable contracts.

The stocking of beans, often in poor conditions, is already likely to have a negative impact on quality for the current harvest. But the financial pressure on farmers and cooperatives is set to have a knock-on effect for the 2017/18 season which will open in October.

"Right now I'm not interested in buying fertiliser or other products. I don't even have 1,000 francs in my pocket in order to eat, so how could I think of that?" said Ali Diabate, 58, who farms six hectares near the town of Soubre in the southwest.

Of 23 farmers interviewed last week across Ivory Coast's western cocoa heartland, none said they planned to invest in fertiliser or pesticides.

The Ivorian government introduced a forward sales system in 2012 allowing it to set a minimum price for farmers with the primary aim of encouraging growers to reinvest in their plantations.

Farmer incomes had steadily risen in line with world prices. However, as the system has broken down this season causing a glut of cocoa and fewer buyers, many farmers have failed to sell their crops while others have been forced to accept less than the 1,100 CFA francs ($1.79) per kg dictated by the government.

Many farmers are now saddled with debt, and farmer cooperatives, which typically distribute fertiliser and other products to their members, are struggling as well.

All 18 co-op directors interviewed by Reuters said they would be unable to help their members prepare their plantations for next season.

"We don't have any money. We haven't even paid for last year's fertiliser because of this situation and our suppliers won't take credit this year," Germain Kabore, who manages a co-op near the town of Daloa, told Reuters.

Across western Ivory Coast, shops selling fertiliser and pesticides have largely closed due to a lack of customers.

"All the stock I've had from January is still there. I haven't sold a single box or bag of fertiliser. It's all still there. No one is coming to buy," said Mamadou Keita, who runs a shop in the town of Soubre.

($1 = 615.9500 CFA francs) (Writing by Joe Bavier; editing by Jason Neely)

© Thomson Reuters 2017 All rights reserved

Bloomberg picks up story about Hershey Investors Suing over Child Labor

Last fall two law suits came out with decisions that went in favor of the cocoa kids and not in favor of the chocolate companies.  We are happy to see that Bloomberg picked up the following story!  --SFC

Hershey Investors Suing Over Child Labor Can Pursue Files by Jeff Feeley  Bloomberg News

March 19 (Bloomberg) -- Hershey Co., the largest chocolate maker in the U.S., was ordered to face a lawsuit by investors seeking to force it to turn over records about cocoa from African farms that may use illegal child labor. 

A Louisiana pension fund raised legitimate questions about Hershey executives’ knowledge of how much of the company’s cocoa, grown in West Africa, may have been produced by child slaves, Delaware Chancery Court Judge Travis Laster said yesterday. He overruled a master’s recommendation that the shareholders’ request to see cocoa-supply chain records be denied. 

West Africa, including top growers Ghana and Ivory Coast, accounts for about 70 percent of the world’s cocoa-bean production. Pressure to manufacture chocolate without harming children may grow as global sales of sweets head toward a record in 2014 and candy makers process more beans, according to data by Euromonitor International Ltd.  

The suit’s allegations create “a reasonable inference about the possibility” some cocoa Hershey officials bought from Ghana and Ivory Coast suppliers may be tainted by the use of illegal child labor, Laster said at a hearing in Wilmington, Delaware. Those questions may be “sufficient to warrant further investigation,” he said. 

See rest of the article at Bloomberg News