Ivory Coast to construct two new cocoa processing factories with US$389m

IVORY COAST – The government of Ivory Coast is seeking to increase the country’s cocoa processing capacity with the construction of two new cocoa processing units in Abidjan and San Pedro with CFA Francs 216 billion (US$389 million) investment.

The new units will have an annual processing capacity of 50,000 tons of beans each, adding to the current installed capacity of 710,000 tons per year.

“We need more projects like this so that by 2025 we can process 100% of our products locally,” said President of Ivory Coast – Alassane Ouattara.

Construction works which will take 2 years have been bestowed on China Light Industry Design Engineering Company, reports Ecofin Agency.

According to the country’s Coffee and Cocoa Council (CCC), 40% of output will be channelled to China.

The project will also boost storage space as two storage warehouses with a total capacity of 300,000 will be constructed.

In addition to that a training center for cocoa trades will be established.

“We need more projects like this so that by 2025 we can process 100% of our products locally,”

President of Ivory Coast – Alassane Ouattara

The extra storage space will allow suppliers to hold back beans from the market to buoy prices and help maintain farmers premium.

Ghana increases cocoa price by 28%

Ivory Coast and neighbouring Ghana, which together produce more than 60% of the world’s cocoa, agreed last year to sell cocoa at a premium to ease pervasive farmer poverty.

The two countries established a price floor of US$2,600 per tonne and a Living Income Differential (LID) of US$400 per tonne.

To this end the President of Ghana, Nana Addo Dankwa Akufo-Addo, has announced that beginning October 1, 2020, a new cocoa producer price of GH¢10,560 (US$1,827) per metric ton, equivalent to GH¢660 (US$114) per bag will be paid for the coming 2020/21 crop year.

This represents a hike of more than 28% over the price obtained in the outgoing crop year of 2019/2020.

“By this new producer price, we have kept faith with our commitment, under the international arrangement with Côte d’Ivoire and global stakeholders, by awarding to our farmers the full four hundred United States dollars per metric ton (US$400/MT) Living Income Differential (LID),” he said.

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The President continued, “By this substantial increase in the producer price, we are also delivering on our 2016 manifesto promise to reward handsomely the hard work of our cocoa farmers and their unequalled contribution to the economy of Ghana over the years.”

To further streamline operations in the industry, Ghana and Ivory Coast have created a joint body to improve coordination in research, price setting and the fight against child labour.

The Ivory Coast-Ghana Cocoa Initiative (ICCIG) will promote their cocoa industries internationally and defend their collective position in the global market.

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