Podcast: Plans for LID sales premium shakes cocoa market
Ghana and Ivory Coast’s proposal for adding a Living Income Differential (LID) premium to sales of cocoa beans looks set to be approved and become law by early next year.
Details of how the plan will be implemented have not yet been set out categorically but essentially it will see USD400 added to every tonne of cocoa bought in the world two leading producers of the commodity to help combat farmer poverty.
Joseph Boahen Aidoo, the CEO of Ghana’s Cocoa Board, told IEG Vu recently that the two countries are expected to finalize their approach by the end of December with passage through the respective parliaments into law likely in the opening months of 2020.
Many questions remain on what impact LID will have on the cocoa supply chain in future, but in this podcast Agribusiness Intelligence analysts Sandra Boga and Sergey Chetvertakov will address the following:
How has the prospect of LID been received by the industry?
Could the introduction of LID lead to an oversupply of cocoa in future?
Is the prospect of LID already impacting on prices?
Is LID the best way to alleviate farmer poverty and create a more sustainable market?
What are the prospects for global cocoa production in 2019/20