ZURICH, Nov 6 (Reuters) - Chocolate maker Barry Callebaut said it expected to pass on higher cocoa bean prices linked to the introduction of a premium by top growers Ivory Coast and Ghana to its customers and expected other producing countries to follow suit.
“We have a cost-plus model so we transfer the movements of commodities to our customers,” Chief Executive Antoine de Saint-Affrique told reporters at the company’s annual results conference on Wednesday.
Ivory Coast and Ghana announced in July that all cocoa purchases for the 2020/21 season must include a Living Income Differential (LID) of $400 a tonne in a bid to tackle pervasive farmer poverty.
“(Ivory Coast and Ghana represent) about 70% of the market. So we expect the other countries to also raise prices and take the advantage,” Chief Financial Officer Remco Steenbergen said. (Reporting by Silke Koltrowitz, editing by Riham Alkousaa)