News in Brief:
– Ivory Coast has suspended its Fairtrade cocoa program due to concerns about uncertified beans entering the system.
– This incident threatens the credibility of Fairtrade certification, as it relies on ethical sourcing practices.
Ivory Coast, the world’s largest cocoa producer, has suspended its Fairtrade program due to suspicions of fraudulent activity involving uncertified beans entering the supply chain, according to a news report.
The Ivorian regulator, Le Conseil du Cafe-Cacao (CCC), made the decision to halt the program on April 19 after observing an unusually high volume of Fairtrade-certified cocoa being traded on its platform, according to a Fairtrade International spokesperson.
Sources familiar with the situation suggest regulators suspected fraudulent practices and moved swiftly to investigate and contain the issue.
Meantime, this development comes amidst a surge in global cocoa prices this year, leading to market instability.
However, for farmers in top producer countries like Ivory Coast, where cocoa prices are heavily regulated, the increase hasn’t translated into higher incomes. Instead, unfavourable weather conditions and disease outbreaks have resulted in lower cocoa yields.
Fairtrade certification is a system which guarantees farmers a premium price for ethically sourced cocoa produced with adherence to social and environmental standards like preventing deforestation and child labour. It should typically present a solution for higher income.
However, sources suggest some cooperatives may have attempted to exploit the system. The sources claim they do this by selling regular cocoa through the Fairtrade program to capitalise on the higher prices. This has led to buyers willing to pay more for scarce Fairtrade-certified beans due to the global shortage.
