The president’s intervention comes after talks with the country’s cocoa regulator, the Coffee-Cocoa Council (CCC), following threats of strike action among cocoa farmers in the week before Easter if the value of beans to the manufacturer did not increase.
This means that the value of cocoa for the May-August average harvest is now set at 1,500 CFA francs per kilogram, a 50% increase compared to the main harvest that ended in March.
As ConfectioneryNews reported, cocoa prices have more than tripled in the last 12 months due to disease and climate changes affecting West Africa, where about 70% of the world’s cocoa is grown.
The official gate value that farmers can rate for their beans in Côte d’Ivoire has not replaced this period, leaving many other people struggling to make ends meet.
A source told Reuters: “There were several proposals on the table and, as a last resort, the president sought the highest conceivable value for producers, so he made a decision of 1,500 CFA per kg instead of 1,200 CFA, which had been previously validated. “
Industry observers expect Ivory Coast farmers to welcome the proposed increase, but it’s still clear whether neighboring Ghana, the world’s second-largest manufacturer after Ivory Coast, will maintain demand and increase the value of cocoa for the manufacturer.
“The latest uptick and momentum above $10,000 per tonne came as Côte d’Ivoire expects a decline in this season’s intermediate crop. A recent report by Hightower stated: “The origin situation in West Africa remains incredibly tight ahead of the mid-harvest harvest next week, and this continues to affect cocoa prices.
“At the same time, cocoa value dynamics may remain higher for the foreseeable future. While Indonesia, Ecuador, and Brazil are cocoa-producing countries, West Africa’s leaders could see their production decline in the coming years.
“However, $10,000 per ton is a maximum value that can cause major chocolate brands and consumers to look for alternatives, less chocolate and other ingredients. “