Ivory Coast ups cocoa prices by 21% to boost farmers income

IVORY COAST – Ivory Coast has joined neighbouring Ghana in raising the farmgate price paid to cocoa farmers by more than 21% to 1,000 CFA Francs (US$1.80) per kg for the 2020/2021 season from 825 CFA francs (US$1.47) of the previous season.

“We have decided to increase the price from 825 to 1000 CFA francs,” said President Alassane Ouattara at the opening of the National Cocoa and Chocolate Days.

According to reports by Africanews, the 2020-21 cocoa harvest is expected to remain at the same high level as last year at 2.1 million tons if political unrest does not disrupt it, as the country is set to undertaken elections at the end of this month.

The increase in cocoa price is largely due to the two governments of the world’s leading cocoa producing countries, implementing a price floor of US$2,600 per tonne and a Living Income Differential (LID) of US$400 per tonne, meant to tackle poverty among farmers.

“We have decided to increase the price from 825 to 1000 CFA francs.”

President of Ivory Coast – Alassane Ouattara

Ghana introduced a new cocoa producer price of GH¢10,560 (US$1.80) per metric ton, equivalent to GH¢660 (US$114) per bag last mounth.

In August, the two West African nations 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.

Cocoa is strategic in Ivory Coast as it represents 10 to 15% of GDP, nearly 40% of export revenues and provides a living to one-fifth of the population, according to the World Bank.

To further boost the industry, the government is seeking to construct 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.

The project will also boost storage space as two storage warehouses with a total capacity of 300,000 will be constructed. In addition, a training center for cocoa trades will be established.

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