Ivory Coast President Alassane Ouattara is set to increase the price of Cocoa in his country by a staggering 50% according to sources at five different export companies.
According to Reuters, the president will increase the official cocoa price to 1,500 CFA francs ( 2.47) per Kg from its current 1,000 CFA as of Tuesday.
The sources who preferred to stay anonymous explained that their information came from decisions made in a government meeting on Saturday.
Earlier on, President Ouattara initially proposed an increase of cocoa prices to 1,100 to 1,200 CFA per kg but after much deliberation decided to settle for something even higher.
- “There were several proposals on the table and as a last resort, the president wanted the highest possible price for the producers so he decided 1,500 CFA per kg instead of 1,200 CFA, which had been validated previously,” the director of a European export company told Reuters.
- “Ultimately in the current context, this is the best possible price that the CCC can pay because the sales system in Ivory Coast is such that it is difficult to change prices during the season,” the director added.
The Director of another international export company explained that the President judged the current situation of the international cocoa market before arriving at his conclusions.
He said the exceptional situation of the global cocoa market today deserved an exceptional reaction too.
The government and the country’s Cocoa regulator, the Coffee and Cocoa Council (CCC) could not be reached for further comments on the price increase.
What To Know
- Global Cocoa prices have more than tripled in the last year as disease and adverse weather affected the output of cocoa production by key producers leading to a third successive deficit.
- Ivory Coast farmers up until now where yet to tally the price they charge for their Cocoa produce to fit the realities of the current global market.
- About Three-Quarter of the world’s cocoa is produced in West Africa with Ghana, Nigeria, Ivory Coast, and Cameroon the key producers in the region.
- The deficit in cocoa supply caused by changing weather in West Africa has affected the price of chocolates around the world. The Easter celebration which is often marked in the western countries with Eggs and chocolates experienced a hike in price for Easter eggs as chocolate which was the go-to alternative was very scarce.