The world’s leading cocoa producers, Côte d’Ivoire and Ghana, have reached agreement with traders, processors and manufacturers to instigate a floor price for cocoa.
The agreement was struck after a two-day stakeholder engagement process that Cocobod said “involved all major cocoa trade houses, processors and manufacturers”. The meeting took place in Accra, Ghana last week.
Cocobod said a floor price of US$2,600 was accepted by all stakeholders, but processors, manufacturers and traders requested a further technical meeting to fine-tune the mechanism for the implementation of the floor price.
It was agreed that the technical meeting will be held on 3 July 2019 in Abidjan.
It was also agreed that issues involving sustainability, traceability, the environment and child labour, although important, be decoupled from the floor price and be discussed at separate forum.
In the run-up to the meeting, Côte d’Ivoire and Ghana suspended sales of the 2020/21 crop. Sales will remain suspended until the floor price actually takes effect.
Cocobod chief executive Joseph Aidoo described the agreement as “a historic meeting.”
Yves Kone, General Manager of Côte d’Ivoire’s Coffee and Cocoa Council, said producers and the cocoa industry “arrived at a consensus” that producers are not well remunerated and that “something must be done.”
Certification body Fairtrade welcomed the announcement. “We believe in sharing the benefits of trade more equally, and welcome this move by the governments to shore up cocoa farmers’ incomes,” said Jon Walker, Fairtrade International’s Senior Advisor for Cocoa.
“We will be actively engaging with the cocoa regulatory bodies in each country to understand how the Fairtrade structure, including our minimum price, will fit in with their plan.”