Cocoa prices for the 2023-2024 campaign: an increase below the expectations of Ivorian producers
As part of the 2023-2024 campaign, the price of a kilo of cocoa in Côte d’Ivoire has been set at 1,000 CFA francs (i.e. 1.52 euros), an increase of 100 CFA francs compared to the previous campaign. . Although this increase may seem positive, Ivorian producers express their disappointment by emphasizing that this increase is below their expectations.
Players in the cocoa sector had, in fact, pleaded with the government for a minimum price of 1,300 CFA francs per kilo, in order to support local producers and reduce the risk of cocoa beans leaking to neighboring countries. This request was based on the significant increase in international cocoa prices in 2023.
The international cocoa market has indeed seen a considerable increase this year, with the price of a tonne of cocoa increasing from $2,560 to $3,660 on the New York market. In this context, producers estimated that a minimum farm gate price of 1,300 CFA francs per kilo was necessary to guarantee the viability of the Ivorian cocoa industry.
Producer margins on a kilo of cocoa remain minimal, with production costs absorbing nearly 80% of the purchase price. The Ivorian Platform for Sustainable Cocoa (PICD) estimates that the farm gate price of cocoa should represent at least 70% of the international price to ensure the sustainability of the industry and transparent and equitable management of income generated by the sale of cocoa.
Pressure on farmers is also increased by traceability standards imposed by international buyers. Although these standards are essential to ensure the sustainability of the cocoa sector, they entail additional costs for producers, particularly in terms of cocoa sorting, data entry and compliance with requirements.
Faced with the disappointment of Ivorian producers, it is important to emphasize the importance of financially supporting small producers in the implementation of traceability practices and guaranteeing fair and equitable prices for their cocoa harvest. This would strengthen the sustainability of the sector and reduce the risk of beans leaking to neighboring countries.
In conclusion, although the price of cocoa for the 2023-2024 campaign in Côte d’Ivoire has seen a slight increase, it remains below producers’ expectations. It is therefore essential to pay particular attention to the needs of Ivorian producers and to take measures to guarantee fair and equitable prices while ensuring the sustainability of the cocoa sector in the country.