Just 24 hours after Ghana and Cote d’Ivoire have suspended the sale of cocoa beans to the open market under the 2020/2021 crop season; key industrial stakeholders have agreed to the demands (including establishing $2,600 as the floor price for a tonne of cocoa) of the two countries
Again, on Wednesday, the threat sharply pushed Cocoa prices on commodity exchange market listed in New York, to $2,540 a ton, up 1.4 percent on the day.
It is on record that the African continent produces more than 70% of the global cocoa beans output but the continent receives just about 2% of the market value of the product. Subsequently, it took the effort and determination of the two countries, which supply more than 65 per cent of global cocoa figures, to get stakeholders in the value chain to give farmers a fair price that reflects their contribution to the sustenance of the cocoa industry.
Speaking to the media after putting forth their demands, Joseph Boahen Aidoo, chief executive of the Ghana Cocoa Board called the action ‘historic’, he said that “this is the first time when the producers have called consumers and the first time whereby suppliers have called buyers to come and engage on price,” he said.
“Over the years it has been the buyers who have determined the price for the suppliers.”
Earlier, on the sidelines of the meeting, the chief of Cote d’Ivoire’s coffee and cocoa council, Yves Kone, said the industry needed a price that amounted to “a decent compensation” for workers’ efforts.