By Bernhard Tröster, Felix Maile, Cornelia Staritz and Sophie van Huellen
In 2021, Ghana and Côte d’Ivoire introduced a $400/tonnes Living Income Differential (LID) on cocoa bean exports, widely regarded as a key mechanism to improve the livelihoods of cocoa farmers. However, this premium was dwarfed by recent price surges at the global derivative markets, which serve as a benchmark for the sales of West African cocoa beans. Yet, farmers have seen a relatively minor increase in the price they receive.
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