Ivory Coast Increases 2022/23 Cocoa Producer Price By 9%
Ivory Coast has increased its cocoa producer price from 825CFA to 900CFA ($1.33) per kilogram for the 2022/23 cocoa season.
The new price announced in Abidjan by Vice President Tiemoko Meyliet represents 9% raise over that of the just-ended season’s producer price paid to cocoa farmers.
Meanwhile, authorities also announced that coffee farmers in the country will see a raise in the farmgate price of the commodity to 750CFA from 700CFA per kilo.
This development may come as good news to cocoa growers who had to contend with producer price cuts in 2021 on the back of plummeting world market prices.
Cote d’Ivoire and Ghana as well as suffered heavy discounting of their origin premiums into negatives, completely erasing the effect of the $400 LID designed to tackle extreme poverty among cocoa farmers.
A joint body spearheading the interests of the two countries in cocoa trade, Cote d’Ivoire – Ghana Cocoa Initiative (CIGCI), in May took a drastic step to publish origin differentials paid by buyers of their cocoa.
In a follow-up action in July, CIGCI and the cocoa regulatory authorities in both countries summoned buyers and chocolate companies to Accra, where they raised the issue for settlement.
The top two cocoa-producing nations of the world have since resolved to only sell their cocoa with positive country differentials, a market premium earned for the quality of produce.
“Our ambition is to no longer sell cocoa with a negative premium. It is to ensure that our producers receive a decent and remunerative income for their cocoa and to achieve this, the origin differential must once again be positive and the LID also applied,” Alex Assanvo, Executive Secretary of CIGCI, told Reuters.
Assanvo insisted, “We will therefore no longer accept cocoa sold below this level as we move into positive territory.”
Ghana’s regulator Cocobod revealed in July that has been accumulating $400million a year in debt to maintain farmgate prices at acceptable levels as premiums are completely eroded and world market prices tumble.
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