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Ghana, Cote D’Ivoire announce more cash for cocoa farmers

Ghana and Cote D’Ivoire have announced a US$400 per tonne (Living Income Differential) to be paid to cocoa farmers, as part of a set of measures they believe will further cushion cocoa farmers — having already agreed to a minimum price for a tonne of cocoa sometime last month.

A meeting in Accra between the two countries together with global processors and buyers for the beans had ended with a tentative price of US$2,600 being for a tonne of cocoa on the world market.

The two countries had a follow-up meeting in Abidjan with stakeholders to deliberate further on the challenges affecting the cocoa sector.

A statement issued after the meeting said, “Following series of engagement with key stakeholders, Cote D-Ivoire and Ghana have established a new pricing mechanism for the trading of cocoa beans which, we believe, would help provide a remunerative price for the Farmer.”

The Mechanism which was introduced to industry players was understood. This system takes into consideration a fixed living income differential which would provide farmers with a decent income.”

“A $400 per tonne (Living Income Differential) has been instituted to guarantee the floor price.” This means for every tonne of cocoa sold, there is an addition $400 that would go to the farmer.

Minimum price

Stakeholders in the cocoa value chain last month agreed to a proposal by Ghana and Cote d’Ivoire to set a minimum price of US$2,600 per tonne for the cash crop after a historic meeting in Accra,.

The two-day meeting held in Accra, which was called at the instance of the two countries, was attended by processors, traders, chocolate manufacturers among other organizations that play various roles in the cocoa industry.

When the minimum price becomes effective, the two countries will no longer sell cocoa beans on the world market below the US$2,600 floor price, thereby guaranteeing farmers a much higher price than currently prevails.

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