Kineden, cocoa trader of the world’s largest producer, has raised 40 million euros on international financial markets to invest in “sustainable cocoa”, a requirement in particular of the European Union (EU), announced its managing director on November 4 .
“Kineden will invest 40 million euros over three years” to improve the processing chain and “prepare to integrate best practices in terms of sustainability, certification, cocoa traceability”, Stéphane told the press in Abidjan. And then, managing director of Kineden Commodities.
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“Sustainable cocoa is cocoa that pays the farmer better, and Kineden, being a local actor close to the farmers”, will be able to do so, he further assured.
This funding comes as tension has risen a notch between, on the one hand, Côte d’Ivoire and Ghana, representing around 60% of world cocoa production, and, on the other hand, the giants of chocolate.
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The two countries are demanding the application of a new pricing mechanism aimed at improving the income of cocoa producers, while chocolate makers want to source “sustainable cocoa”, “without deforestation or child labour”.
100 billion dollars per year
Cocoa from the Ivory Coast, which represents 45 % of world production, accounts for 14% of the national GDP and feeds 24% of the population of this country of approximately 27 million inhabitants. Côte d’Ivoire and Ghana introduced in 2021 a “Differential of living income” (DRD), a premium of 400 dollars per ton (in addition to the market price) intended to better remunerate the planters (who are millions to living in poverty in West Africa) and to “ensure the sustainability of the cocoa economy”.
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The planters are the poor relatives of the sector: they only receive 6% of the 100 billion dollars annually generated by the world cocoa and chocolate market, locked by the big industrialists.
In Côte d’Ivoire, more than half of planters live below the poverty line, according to a World Bank study. The situation is comparable in Ghana, where some 800,000 families live from cacao.