The World Bank through the IFC its investment arm is taking a 6% stake in the Armajaro cocoa trading house. It will also lend firm $55 million in mezzanine debt.
Is this supposed to help poor farmers? This seems to have some murky reasoning if the firm is supposed to still be a profit maximizer. If they have an opportunity for a quick profit from driving prices lower should they still take it? The conflict of interest or the potential to be on the wrong side of a pricing issue as defined by what is best for farmers is high. Is this better than a marketing board? What if the trading firm is in conflict with a country's marketing board? The change for confusion is extremely high.
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