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Ghana, Ivory Coast to introduce cocoa production ceiling

Ghana and Ivory Coast, the world’s top cocoa producers, are looking at introducing a cocoa production ceiling to support global prices and discourage overproduction, the countries’ industry regulators said on Wednesday.

The move comes after the West African nations, who produce two-thirds of the world’s cocoa, imposed a fixed “living income differential (LID)” or premium of $400 a tonne in July on all cocoa sales for the 2020/21 season.

Many cocoa buyers say the LID, which represents a major overhaul of how cocoa is priced globally, could lead to excess production and eventually, to lower prices.

“We’ve put in (place a) mechanism which sets production ceilings,” Joseph Boahen Aidoo, CEO of the Ghana Cocoa Board (Cocobod) told industry representatives at the European Cocoa Forum in Lisbon.

He declined to say at what level the production ceiling would be set, saying that parliament had to approve it first.

The director general of Ivory Coast’s Conseil Cafe Cacao (CCC), Brahima Yves Kone, said lawmakers in Ivory Coast and Ghana would likely approve the production ceiling. “According to the figures they gave us, we expect them to agree,” he said.

Cocoa prices on ICE Futures Europe hit a one-year high of 1,939 pounds ($2,424) in July, in anticipation of the move by Ivory Coast and Ghana to introduce the premium, their latest attempt to combat pervasive farmer poverty.

Speaking on how the West African nations would implement a production cap in practice, Kone said Ivory Coast had begun mapping and registering the country’s farmers, and should complete the project by 2020.

SOURCE : REUTERS

EU backs cocoa price rise to make production more sustainable

Higher prices are needed to ensure cocoa production becomes more sustainable, a senior European Union official said on Tuesday, backing plans by top growers Ivory Coast and Ghana to levy a “living income differential” on sales.

“Ivory Coast and Ghana can count on the EU in their price floor initiative,” Regis Meritan of the trading bloc’s directorate-general for International Cooperation and Development told Reuters on the sidelines of a meeting organised by the International Cocoa Organization (ICCO).

 

The West African neighbours, who together produce two-thirds of the world’s cocoa, imposed a fixed “living income differential” of $400 a tonne in July on all cocoa sales for the 2020/21 season.

The move, a bid to ease pervasive farmer poverty, child labour and deforestation, was a major overhaul in how cocoa is priced globally.

“This initiative affects the price and we are convinced that without a significant increase in price we will not be able to change the paradigm,” Meritan, team leader on rural development, food security and nutrition, said.

Meritan said it would not be a problem for chocolate makers to pay more for cocoa as long as their competitors also faced higher costs. Major chocolate makers include Barry Callebaut AG , Mondelez International Inc and Nestle SA .

“If they all pay together more…the one who will ultimately pay more is the consumer,” he said.

Meritan welcomed the ongoing dialogue on the pricing scheme involving traders, producing countries and chocolate makers.

“Two years ago in 2017 in Brussels it was impossible with the industry to talk about the price and on the side of the producing countries it was not easy to make them say that if the price was low, it was because there was too much cocoa on the market,” he said.

“Today we are in a much healthier discussion.”

SOURCE : REUTERS

President To Announce New Cocoa Price

Joseph Boahen Aidoo speaking at the launch of the National Cocoa Day in Accra President Nana Addo Dankwa Akufo-Addo will on October 1, 2019 announce the new price of cocoa for the 2019/2020 cocoa season.

The announcement will be made at the climax of the 2019 National Cocoa Day celebration in Ahafo’s cocoa region.

It will see farmgate prices of cocoa up by 5.2 percent to GH8,000 ($1,523.81) per tonne from GH7,600 last season.

This will be the first increase in four years, following strong sales of export contracts to chocolate makers and cocoa houses. Chief Executive of COCOBOD, Joseph Boahen Aidoo, made this known at the launch of the 2019 National Cocoa Day in Accra themed: ‘Sustainable Cocoa Production for Wealth and Health’.

“Currently, in Ghana, our cocoa sector is undergoing a transformation and we believe that the cocoa day gives us the opportunity to see how this transformation journey is going,” he said. The choice of Sunyani for the celebration, he said, was strategic as the region has produced 11 national best cocoa farmers out of which 8 are still alive.

Also, the region remains one of the best three cocoa districts in Ghana. Activities The celebration of the National Cocoa Day starts on Friday, 27th September, 2019 with a health talk with members of the Muslim community, followed by a health walk through some principal streets of Sunyani on Saturday 28, September 2019. An exhibition will be held at the Jubilee Park to give stakeholders the opportunity to sell approved agro-inputs to farmers.

On Sunday, COCOBOD staff will fellowship with selected churches in the Sunyani municipality to share the nutritional and health benefits of cocoa. A youth forum will be held at the Sunyani technical university to create awareness on the business opportunities in the cocoa sector, followed by an all-night time with national best cocoa farmers.

“The grand durbar will be held on 1st October, 2019 at the Jubilee Park where President Akufo-Addo will be delivering the keynote address,” he said. Nana Johnson Mensah, Western South Regional chief farmer and COCOBOD member, has called on stakeholders especially the media, to support the National Cocoa Day to make it successful.

Source : Daily Guide Ghana

Citizen Watch demands GH₵9,000 as farmgate price for cocoa farmers

The Citizen Watch, a think tank, is calling on President Nana Addo Dankwa Akufo Addo to as a matter of urgency scale up the farmgate price of cocoa beans to GH₵9,000 per tonne from the current GH₵7600.
According to the Citizen Watch, the increase will help save cocoa farmers from the imminent collapse of their industry.
In a press statement signed and issued in Accra by Francis Mensah, the convener of the Citizen Watch, the group argued, “What we expect the government to do is to provide the much need incentive to these famers, since the country largely depends on their efforts in supporting our balance of payment and not to cripple the industry.
“Even as the dollar is on the rise, the government is still paying such a paltry amount of money. We are calling on the government to act on this issue immediately before the worse happens”, the statement said.

Meanwhile, the Ghana Cocoa Board (COCOBOD) has denied media reports that it plans to increase the producer price paid to cocoa farmers in the 2019/20 cocoa season to GH¢8,000 per tonne. It said beyond the reports being untrue, they were premature as the Producer Price Review Committee (PPRC), which met every year to fix the farm gate price, was yet to meet and take a decision.
The Head of Public Affairs of COCOBOD, Mr Fiifi Boafo, who said this in an interview on August 8, thus advised cocoa farmers, industry stakeholders and the general public to disregard the reports.
“The information out there is not true; no decision has been made and we are yet to call for PPRC meeting and that is about a month away.
“So nobody has the right, mandate and information to determine what the price will be, and we want the public to disregard any information to the contrary,” he told the Daily Graphic in Accra.

SOURCE: Graphic/Public Affairs