Ivory Coast temporarily halts Fairtrade cocoa program amid fraud concerns

IVORY COAST– Ivory Coast has suspended the Fairtrade cocoa program amid suspicions of contamination with uncertified coffee beans.

The suspension follows suspiciously high volumes of Fairtrade-certified cocoa trading on Le Conseil du Cafe-Cacao, the Ivorian cocoa regulator’s platform. 

This anomaly raised suspicions that the Fairtrade program was infiltrated with non-certified cocoa beans. 

Fairtrade responded to the situation by acknowledging the concerns raised and emphasizing the importance of maintaining the integrity of the program. 

Fairtrade released a statement saying, “For Fairtrade, the integrity of Fairtrade certified cocoa is essential. Hence, we support the ambition of the CCC to confirm the integrity of Fairtrade-certified cocoa and ensure that beans are traded properly.” 

The suspension follows a surge in cocoa prices and shortages. 

Extreme weather and disease exacerbated the shortages, significantly reducing the amount of cocoa available for sale. 

The country sells its cocoa a year in advance through programs like Fairtrade, using price averages to set prices for the following year. 

The market shocks resulted in a 50% increase in farmgate prices.  

However, farmers have not benefitted from the surge in international cocoa prices because of local price regulation on the Ivory Coast. 

The regulator suspects some cocoa cooperatives sold regular, non-certified cocoa, taking advantage of Fairtrade’s comparatively higher prices. 

The shortage also means buyers are willing to pay more than the regulated prices for the commodity. These market dynamics created a perfect storm in the Ivorian coffee market and Fairtrade’s program.  

The incident significantly taints Fairtrade’s credibility. 

To access its premium prices, Fairtrade requires cooperatives to adhere to strict standards, such as eliminating child labor and deforestation, in addition to quality requirements. 

It also shows cocoa farmers’ challenges in Ivory Coast and other African cocoa-producing countries despite increased cocoa prices. 

The suspicion of fraud follows one of the worst cocoa harvests in decades. The country failed to deliver nearly half a million tons of pre-sold coffee. 

Ivory Coast is the largest cocoa-producing country in the world, producing around 2.2 million metric tons annually. 

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