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Cocoa: Ghana And Cote D’Ivoire Suspend Their Sales

Cocoa: Ghana and Cote d’Ivoire suspend their sales

Côte d’Ivoire and Ghana, the world’s two largest producers, announced Wednesday that they would no longer sell their cocoa below $2,600 a tonne, a “historic” decision presented as a way to better remunerate farmers.

“For years, it is the buyers who have determined the prices”.

In an attempt to reverse the trend, “Côte d’Ivoire and Ghana have suspended the sale of the 2020/2021 crops until further notice to prepare for the introduction of this minimum price”,

Of the $100 billion in the world chocolate market, only $6 billion goes back to farmers.

“Brown gold” accounts for 10% of the GDP of the Ivory Coast, barely less for Ghana.

On the markets, this meeting contributed to the rise in the price of cocoa, which reached 2,552 dollars per ton on Wednesday in New York.

However, this rise may only be temporary, warned Casper Burgering, commodities analyst for the Dutch bank ABN Amro, joined by the AFP.

“For the time being, there is clearly enough cocoa to meet demand,” he commented, and “since it will take a year, more or less, for this floor price to be put in place, there is a risk that current prices will fall back.

“We are facing strong world demand while Ivorian supply for next season is hesitant, it is not clear whether there will not be a drop in production due to drought in the main season,” she explained.

 

source https://www.challenges.fr/economie/ghana-et-cote-d-ivoire-suspendent-leurs-ventes-de-cacao-dans-l-attente-d-un-prix-minimum_657693

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