Côte d'Ivoire to Control Cocoa Production Under Its New Pricing Scheme
Côte d'Ivoire's cocoa regulator said it would seek to keep bean production at current levels, even as the country and its neighbour Ghana consider increasing the revenues of…
Côte d'Ivoire's cocoa regulator said it would seek to keep bean production at current levels, even as the country and its neighbour Ghana look to increase farmers' incomes by raising their prices.
The world's two biggest cocoa producers are seeking to jointly introduce a premium of $400 a tonne, known as the living income differential, in order to gain greater control over cocoa markets. While the countries want to put the sales plan in place for the 2020-2021 season, many traders and analysts are sceptical about its effectiveness and have criticised the idea of encouraging farmers to increase their output further.
Côte d'Ivoire, which accounts for about 40% of world production, is expected to produce a record crop of about 2.2 million tonnes for the season through September.
Côte d'Ivoire will introduce improved systems for registering growers and their plantations, Yves Kone, director general of the Coffee-Cocoa Council, the industry regulator, told the press on Thursday in the commercial capital, Abidjan. He has put an end to plans to distribute seedlings and will seek to curb the growth of trees in new areas, he said.
The regulator will "stabilise Côte d'Ivoire's production at around 2 million tonnes" per season, Kone said. "I am not worried."
A suspension of forward sales for the 2020-2021 season will remain in force until the new pricing plan takes effect, Kone said. The two countries are currently communicating the plan to stakeholders, he said.
