In a move to bolster the cocoa industry, the Ivory Coast has announced a substantial 50% increase in the official selling price of cocoa. Within a few days, the price per kilogram will rise from 1,000 to 1,500 CFA francs, equivalent to $2.47, as reported by anonymous export companies.
Sources reveal that this decision was made during a government meeting on agriculture and cocoa held last Saturday, with President Alassane Ouattara present. Initially, Ouattara approved a proposed price range of 1,100 to 1,200 CFA francs per kilogram. However, he later reversed his decision and requested an even higher price, which will be officially implemented by the Ivorian president.
This price adjustment comes at a time when cocoa prices have more than tripled over the past year. Unfavorable weather conditions have led to a third consecutive deficit in the global market. The surge in prices is largely attributed to low yields in West African cocoa-growing regions, which account for approximately 70% of global cocoa production.
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The increase in cocoa prices in the Ivory Coast is expected to have significant implications for the country’s cocoa industry and its position in the global market. It aims to provide better remuneration for cocoa farmers and incentivize increased production. However, it may also impact the affordability of cocoa for buyers and the dynamics of the international cocoa trade.
The Ivorian government’s decision reflects its commitment to support the cocoa sector and address the challenges faced by farmers. It highlights the importance of the cocoa industry to the country’s economy and its efforts to ensure a sustainable and prosperous cocoa sector.
As global demand for cocoa remains high, this price hike in the Ivory Coast may have ripple effects on cocoa prices and supply chains worldwide. Market players will closely monitor the developments and assess the impact on the industry as a whole.
It is worth noting that the success of this price increase will depend on various factors such as market conditions, productivity improvements, and the ability to maintain quality standards. The Ivorian government will need to closely collaborate with industry stakeholders to ensure a smooth transition and create a favorable environment for the sustainable growth of the cocoa sector.
