Ghana, Cote d’Ivoire to begin implementing cocoa floor price in 2020/2021

WEST AFRICA – Ghana and Cote d’Ivoire have scheduled the 2020/2021 season as takeoff for implementation of the agreed minimum price for cocoa produced in the two countries.

As per the provisions of the agreement, an amount of US$2,600 has been stipulated to be the fixed minimum price per tonne of Cocoa, equivalent to US$2,700 Cost, Insurance, and Freight (CIF).

The chief executive officer of  Cocoa Board (COCOBOD), Joseph Boahen Aidoo, said that the floor price would determine cocoa prices for 2020/2021 since the 2019/2020 produce has already been sold at existing prices.

The development successfully completes negotiations initiated by the President of Ghana Nana Akufo-Addo and President of Cote d’Ivoire, Alassane Ouattara, since 2017 for a fixed producer price for cocoa.

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The move also brings a new era in the cocoa sector marking the first time African Cocoa producing countries are dictating prices for international processors and marketers.

Mr Boahen Aidoo further explains that the “new arrangement fixes a constant extra US$400 for every tonne of cocoa from the two countries,” adding that new floor price would subsequently ensure a decent income for cocoa farmers.

However, he noted that the both countries will have to adhere strictly to international standards in cocoa production especially through ensuring sustainable cocoa sourcing.

He revealed that stringent policies would be rolled by the board to deal with issues of child labour and deforestation in cocoa producing areas in the country.

Stabilization Fund

Mr. Boahen Aidoo further added that a stabilization fund account would be created for the two countries to serve as a backup, to boost prices in case of a fall below the stipulated floor price.

“A stabilization fund account shall be established under the cocoa initiative of both countries and provided for in the Charter, two accounts to be set up for each country within the secretariat in Accra.

“Any extra value above US$3000 CIF or US$2900 gross FOB (free on board) of the achieved weighted average will be placed in these accounts,” he said.

According to a GhanaWeb report, the funds will only be disbursed from the stabilization fund account to support falling floor price.

The new agreement would also give the Ghana COCOBOD enough capacity to undertake more corporate social responsibilities. Ghana and Cote D’Ivoire are the world’s leading cocoa producers accounting for about 65% of total global output.

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2 Thoughts to “Ghana, Cote d’Ivoire to begin implementing cocoa floor price in 2020/2021”

  1. Adade Ebenezer

    Please increase the the cocoa price because cocoa farmers we are suffering 😭

  2. Adade Ebenezer

    People are stopping producing cocoa because of low price and they started producing robbrt because robber has high price
    So please our cocobod officers try to do something about it otherwise we will all start plant robber

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