COTE D’IVOIRE – Ghana and Cote D’Ivoire, the world’s leading cocoa producers accounting for 65% of global cocoa output, have firmed up on their decision on the cocoa floor with a follow-up meeting in Abidjan.
Having already agreed to a minimum price for a tonne of cocoa, the two countries have announced a US$400 per tonne (Living Income Differential) to be paid to cocoa farmers, as part of a set of measures they believe will further cushion cocoa farmers.
Following the development, farmers will get an addition US$400 for every tonne of cocoa sold. Cote D’Ivoire and Ghana have however promised to engage industry on issues of sustainability.
Stakeholders agree on
Ghana and Cote d’Ivoire are co-operating to tackle common challenges in the production and marketing of cocoa.
Earlier last month, Ghana and Ivory Coast succeeded in getting an agreement with global processors and marketers for the floor price of cocoa beans to be pegged at US$2,600 per tonne.
The two major cocoa producers also agreed to “suspend the sale of the 2020/2021 cocoa beans to pave way for the implementation of the floor price”.
This will also enable
There are fears that the sustenance of the new cocoa floor price could be tampered by low consumption rate of cocoa especially in Africa which accounts to just 4
In the latest development, U.S. food processor Mars Inc. says it supports the decision by the two countries to set a floor price for their cocoa exports, becoming one of the first major chocolate companies to back the initiative.
“We believe cocoa farmers should earn sufficient income to maintain a decent standard of living. “The reality today is that many are a long way from this,” John Ament, Global Vice President of Cocoa for Mars, told Reuters.
“We support moves by governments to intervene to achieve a higher price that leads to a sustainable increase paid to the farmer and is supported with governance to ensure there is no further expansion of land use to grow cocoa,” Ament said.
Though farmer advocacy groups have applauded the decision, major players in the chocolate industry have largely not responded since the decision was announced in June.