WEST AFRICA – Ghana and Cote D’Ivoire, the world’s two largest cocoa producers have lifted the suspension of cocoa sales for the 2020/2021 season.
The two West African countries, on June 12 announced the decision to suspend the sale of their 2020/2021 produce in
The amount was the first-floor price to be set by the two top growers, bringing to an end the century-old pricing structure that makes cocoa producers price takers.
The gesture, which is the first of its kind by the world’s top two cocoa growers, was later embraced by stakeholders in the cocoa industry – which has prompted the cocoa regulators in the two countries to lift the suspension.
This was revealed in a joint communique issued and signed by Mr. Joseph Boahen Aidoo, the Chief Executive of the Ghana Cocoa Board, and the Chief of Cote d’Ivoire’s Coffee and Cocoa Council, Yves Kone-Brahima.
“In view of the above the two countries decided to lift the suspension of sales of the 2020/2021 crop from July 16,” the communique said.
The regulators affirmed that they were going to legislate the minimum producer price to be paid to cocoa farmers as a means to safeguard their income.
In addition to the floor price, the two countries during a meeting in Ivory Coast’s commercial capital Adidjan, also introduced a Living Income Differential of US$400 per tonne.
The two countries would be paying farmers a guaranteed minimum price of 70 per cent of the floor price of US$2,600 per tonne.
Farmers would also be entitled to bonus payment when the achieved average gross Free On Board (FOB) price at the end of the Cocoa season is between the minimum of US$2,600 (US$2,700 Cost Insurance Freight (CIF) – US$2,900 (US$3,000 CIF).
The countries agreed on creating a stabilization account under the cocoa initiative of both countries and provided for in the Charter.
In line with this, two accounts would be set up for each country within the secretariat in Accra where any extra value above US$3,000 CIF or US$2,900 Gross FOB of the Achieved Weight Average will be deposited, an Update by GNA reveals.