Ghana and Ivory Coast have both decided to increase the price of Cocoa. Both Countries supply about 60% of the world’s Cocoa.
The recent increase according to them is that despite Cocoa being a very profitable Commercial Farming Industry that churns out between $10 – $20 Billion annually, Cocoa farmers end up with a meagre $2,400 per year.
The Cocoa Regulators met with industry representatives including Hershey, Mars and many others in Abidjan.
Some representatives showed hesitation as one disclosed to Reuters that the implementation lacked clarity hence further meetings will ensue.
According to the CEO of Ghana’s Cocobod, Cocoa regulator in the country, he disclosed that Cocoa is indeed a free market and if they do not wish to pay the agreed sum, they were welcome to look elsewhere.
With this new development, Both Countries will now supply Cocoa for $2,600 per tonne which is a 10% increase on the existing global price to begin the 2020 – 2021 season.
Some Analysts have critiqued how this move would alleviate world poverty while others believe this is indeed at least a start.
