Cocoa

Agreement by Côte d'Ivoire and Ghana to introduce new minimum floor price for cocoa fails

By Anthony Myers contact

- Last updated on GMT

Ghana and Côte d'Ivoire have failed in their bid to set a minimum price for their cocoa
Ghana and Côte d'Ivoire have failed in their bid to set a minimum price for their cocoa

Related tags: Cocoa, Ghana cocoa board, Côte d'ivoire

Two countries instead agree on 'additional' $400 income for farmers if price falls too low, after meeting in Abidjan breaks up without agreement from cocoa processors.

A meeting between two of the world’s biggest cocoa producers, Côte d'Ivoire and Ghana, has failed in its bid to set a new minimum floor price for the export market.

The West African neighbors had agreed last month to fix a minimum price of $2,600 per ton for the 2020/21 season, but failed to make an agreement on Wednesday in what was described as a ‘Technical Meeting’ with the chocolate industry over how to introduce the price.

Cocoa regulators from the two countries met in Abidjan to discuss the details of the plan with industry representatives including Hershey, Mars Inc., Blommer Chocolate, Cemoi, SucDen, Mondelēz International, Touton, Barry Callebaut, Cargill Olam International and Ecom Trading.

In a statement released to the media, Côte d'Ivoire and Ghana said instead they would institute a $400 per ton so-called ‘Living Income Differential’ written into export contracts that would be applied if market prices fall below $2,600.

As reported by ConfectioneryNews, the two governments proposed a common floor price to address farmer incomes, which they complain are extremely low relative to the money made by big cocoa traders.

The mechanism that Ghana and Ivory Coast proposed to us still lacks clarity and precision for its adequate application, so there will need to be more meetings​,” a company official told Reuters, and asked not to be named.

They aren’t obliged to accept, because it’s a free market. If they don’t want to pay the price that we are proposing, they can go elsewhere​,” Joseph Boahen Aidoo, CEO of Ghana’s cocoa regulator Cocobod, told a news conference soon after the meeting broke up.

Third-party certification schemes, corporate sustainability programs, and government-guaranteed minimum prices in both countries have aimed to raise living standards for farmers, but a Fairtrade International survey last year found that just 12% of Ivorian cocoa-farming households earned $2.50 per person per day, a level it calculated to be the living income benchmark.

Related news

Show more

2 comments

Inequalities , only 3 percent westerners control the

Posted by Yapi YB Bonifon,

I mean I much large hot chocolate cust at Starbucks, dunkin dona, or mc Donald.
The west is buying africain organic product
At miserable price, and that is monkey business. And the greedy,Christian are creating poverty across the land, as results our youngsters are fleeing the continent or drowning at Mediterranean Sea. Inequalities
And evil colonial way of doing business with Africa has to stop. And am thinking pagans china idols worshippers are far than Vatican City with is Christianity believes. From gluttony, arrogant, triumph, wickedness, greedy fuck, pride over evil acts, pagans etc.

Report abuse

Stand your grounds

Posted by Mubarak zakari,

I suggest that the two countries find alternative markets, even if its within Africa. In the initial stage there will be challenges, but if you keep the focus and proper planning, eventually we will succeed. We shouldn't continue to dance to the tunes of the west, we have what it takes to make progress without them.

Report abuse

Follow us

Featured Events

View more

Products

View more

Webinars