Ivory Coast Farmers to Gain 50% Hike in Cocoa Farmgate Price
Ivory Coast is set to announce an increment in the cocoa farmgate price by 50%, raising it from 1000 to 1500 CFA francs ($2.47) per kilogramme.
President Alassane Ouattara is programmed to make the official announcement on Tuesday, April 2, 2024, multiple sources have said, citing a decision at a government meeting on Saturday, according to Reuters.
“There were several proposals on the table and as a last resort the president wanted the highest possible price for the producers so he decided 1,500 CFA per kg instead of 1,200 CFA, which had been validated previously,” Reuters quoted the director of a European export company.
“Ultimately in the current context, this is the best possible price that the CCC can pay because the sales system in Ivory Coast is such that it is difficult to change prices during the season,” the source said.
Another exporter also said, “The president judged the world market situation to be exceptional and wanted an exceptional reaction too.”
Industry watchers are expecting Ivory Coast farmers to welcome the proposed increment.
The price increment comes less than a week after a planned protest by cocoa farmers was called amidst promises of a price raise by the country’s agriculture minister.
Experts believe the cocoa farmgate price review has become crucial in the face of the rampant loss of cocoa beans to neighbouring Guinea through smuggling activities.
Ivory Coast and Ghana, the world’s largest cocoa producers, have seen an unprecedented decline in cocoa arrivals at ports due to poor harvests attributed to unfavourable weather, disease, and smuggling.
The situation has occasioned a global cocoa supply shortfall in the last couple of years, pushing cocoa prices to an all-time high of $10,000 per tonne on the world market last Tuesday.
In its monthly Cocoa Market Report for February, the ICCO sounded alarmed at the unprecedented price rally, citing potential ramifications for producers, companies, and consumers worldwide.
“High cocoa prices remain a significant concern due to a supply shortfall from key producers in Côte d’Ivoire and Ghana, resulting in a 28% and 35% decrease in arrivals at Ivorian and Ghanaian ports, respectively, compared to the previous season.”
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