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 on 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.
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.
Record height
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 on Tuesday. The futures market in New York saw a new record high of $10,324 per tonne during trading. Less than a year ago, it was still less than $3,000 for a ton.
