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Should Cadbury Be Worried? -Ivory Coast posts record cocoa harvest, boosts farmer price

Nairametrics by Nairametrics
October 2, 2014
in Uncategorized
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Reuters reports Ivory Coast posted a record cocoa crop in the recently ended 2013/14 season, harvesting 1,740,842 tonnes of beans, the government said on Wednesday as it boosted the minimum price paid to farmers by more than 13 percent.

So this should look like good news from an African’s perspective however I am a bit worried. Especially for the likes of Cadbury and Nestlé who use cocoa as one of the raw materials for their inputs.  Cadbury posted drop in revenue and profits in their latest results and an increase in cocoa prices may not sound like good news to them.

Agreed the price increase is more like a future lock down of prices for cocoa farmers however regional players who may be looking at cheaper bargains may have to live with paying the same high cocoa cost last year like they did this year.

Get the full article here  Reuters

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