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Ivory Coast President Alassane Ouattara plans to raise the price of cocoa in his country by a significant 50%, as reported by sources from five different export companies.
According to Reuters, the president intends to increase the official cocoa price to 1,500 CFA francs (approximately $2.47) per kilogram from its current rate of 1,000 CFA as of Tuesday.
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The sources, who wished to remain anonymous, stated that their information was based on decisions made during a government meeting on Saturday.
Initially, President Ouattara proposed an increase in the prices to 1,100 to 1,200 CFA per kilogram. However, after extensive discussions, he opted for an even higher price.
“There were various proposals on the table, and ultimately, the president aimed for the highest possible price for the producers, so he settled on 1,500 CFA per kilogram instead of the previously validated 1,200 CFA,” explained the director of a European export company to Reuters.
“In the current circumstances, this is deemed the most favorable price that the CCC (Coffee and Cocoa Council) can offer because the sales system in Ivory Coast makes it challenging to adjust prices during the season,” the director added.
Another director from an international export company noted that the President considered the current state of the global market before making his decision. He emphasized that the exceptional situation of the global market warranted an extraordinary response.
Both the government and the CCC were unavailable for further comments on the proposed price increase.
Key Points to Consider
– Global cocoa prices have significantly increased over the past year due to disease and adverse weather affecting cocoa production in key producing regions, resulting in a third successive deficit.
– Ivory Coast farmers had not adjusted their cocoa prices to reflect the realities of the current global market until now.
– West Africa produces about three-quarters of the world’s cocoa, with Ghana, Nigeria, Ivory Coast, and Cameroon being the primary producers in the region.
– The deficit in cocoa supply caused by changing weather patterns in West Africa has impacted the price of chocolates worldwide. The Easter celebration, traditionally marked with eggs and chocolates in Western countries, experienced a price hike for Easter eggs due to the scarcity of chocolate, the preferred alternative.
