Title: The price of cocoa in Ivory Coast: an increase below producers’ expectations
Introduction :
Ivory Coast is the world’s largest producer of cocoa, and the cocoa industry plays a vital role in the country’s economy. However, despite the increase in international cocoa prices, the price of a kilo of cocoa for the 2023-2024 campaign has been set at 1,000 CFA francs, or 1.52 euros, which represents an increase compared to the previous campaign. This increase, however, remains below the expectations of players in the sector, who were hoping for a higher price to support local producers and reduce the risk of cocoa beans leaking to neighboring countries.
The disappointed expectations of producers:
The announcement of the cocoa price during the launch ceremony of the new campaign left many producers disappointed. Although the increase of 100 CFA francs per kilo is appreciated, producers were hoping for a higher price, especially given the rise in international cocoa prices. Sector stakeholders estimated that a minimum price of 1,300 CFA francs per kilo would have been more appropriate to support local producers and strengthen the country’s economy.
The challenges of the cocoa industry in Ivory Coast:
Despite its position as a world leader in cocoa production, the cocoa industry in Côte d’Ivoire faces many challenges. Production costs absorb 80% of the purchase price, leaving minimal margins for producers. Additionally, farmers face increasing pressure to meet traceability standards, leading to additional costs for small farms.
The consequences of low income for producers:
The low income of cocoa producers in Côte d’Ivoire has harmful consequences for the sustainability of the sector. Some farmers are forced to seek direct outlets with end buyers, such as cocoa processors and supermarkets, to try to obtain cheaper prices. However, this approach requires additional investments in management and logistics.
The need to strengthen governance and transparency:
To ensure the viability of the cocoa industry in Côte d’Ivoire, it is essential to strengthen governance and transparency within cooperatives. This would allow more equitable management of income generated by the sale of cocoa and reduce the risk of products leaking to neighboring countries.
Conclusion :
Despite the increase in the price of a kilo of cocoa in Côte d’Ivoire for the 2023-2024 campaign, the cocoa industry faces many challenges and the expectations of stakeholders in the sector remain high. To ensure the sustainability of the sector, it is crucial to financially support producers, strengthen governance and transparency, and find solutions to deal with growing pressures linked to traceability and production costs.