Nigeria is ready to join the cocoa market’s OPEC: what kind of alliance is this?
Cote d'Ivoire and Ghana, which produce about 60% of the world's cocoa, created the LID payment system in 2019 to levy a duty of $400 per ton of cocoa and control the supply chain.
Nigeria's Ministry of Agriculture officials said they will discuss joining the LID system with the Ghana Cocoa Board as early as May. Nigeria's involvement could strengthen the position of producers from Ghana and Côte d'Ivoire, whose efforts have been undermined by a pandemic surplus that has depressed cocoa prices.
According to the British Fairtrade Foundation campaign, cocoa growers receive an average of 6 percent of the price of chocolate paid by consumers.