Queen Mathilde visits a cocoa plantation in Meagui, during a royal working visit to Ivory Coast. — © BELGA
Cocoa farmers in Ivory Coast have managed to cash in on unprecedented prices on the futures markets. The government will compensate them more for their cocoa beans, the most important raw material for chocolate.
Ivory Coast – the world’s largest cocoa producer – will pay 1,500 CFA francs (about 2.3 euros) per kilo of cocoa beans for the harvest during the just-started mid-season, Agriculture Minister Kobenan Kouassi Adjoumani announced today/Tuesday. This is an increase of 50 percent compared to the main season that just ended. The cocoa harvest consists of two seasons: the main season from October to March, and the mid-season with a lower yield from April to September.
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It is hoped that the higher prices for farmers will alleviate the shortage of cocoa in the markets. Amid record prices on the futures markets, there were fears that some growers were deliberately delaying deliveries in the hope that they too could get more money for their beans.
It is now more interesting for farmers who still have stocks to sell them for processing and export. Moreover, the higher compensation for farmers could also lead to much-needed investments in their farms.
In recent months, cocoa prices on the futures market have seen an unprecedented increase, driven by lower exports from Ivory Coast and Ghana, the number two in cocoa production. West African countries were plagued by a combination of either too dry or too wet weather and structural problems, such as older and diseased trees.
The cocoa price continues its rise today/Tuesday. The New York futures market hit a new record of $10,324 per tonne during trading. Less than a year ago, it was still less than $3,000 for a ton.
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