The Ivory Coast and Ghana will not sell cocoa from the 2020-2021 crop for less than $2 600 per ton, Ivorian President Alassane Ouattara said on Tuesday, affirming his country’s resolve to stick to a deal with Ghana to coordinate prices.
The two West African neighbours joined forces in June to impose a floor price for cocoa of $2 600 per ton and a live income differential of $400 per ton.
“We will not sell the 2020-21 crop for below $2 600 per ton,” Ouattara said in a televised address.
He also said he wanted the guaranteed price for farmers to return to 2015 levels of 1 000 CFA francs ($1.71)/kg from the current level of 750 CFA francs ($1.28)/kg.
Ghana: Dying cocoa plantations
Ghana is the world’s second largest cocoa exporter. But production has declined due to crop disease and extreme dry weather. An organization from the Netherlands is helping farmers to replace their old cocoa trees.
“We will raise the cocoa price on October 1,” he said, in reference to this farm-gate price.
Changing course
The move is a dramatic change of course from only a few weeks ago. On July 16, Ghana and the Ivory Coast had given in to pressure from the global chocolate industry and lifted a month-long ban on cocoa sales that was meant to push international buyers to accept a $2 600-a-ton minimum agreement..
At the time, the two countries settled for a fixed premium price under which farmers in Ghana and the Ivory Coast would get $400 premium per every ton of cocoa beans they sell during the 2020-2021 harvest season.
