Cocoa Price Floor
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It should be noted even a floor price of 2 600 would translate into only a fraction of the farmgate price that cocoa farmers would need to earn a living income according to a fairtrade analysis.
Cocoa price floor. Obafemi oredein a cocoa specialist in nigeria points out in ieg vu s global outlook for 2019 that the 40 fall in global cocoa prices in 2017 was a direct result of excess cocoa supply especially by côte d ivoire. Cocoa farmers tired of a tiny income as buyers reap the benefits demanded 2 300 euros 2 600 per tonne floor price from buyers who make large profits by selling chocolate to big manufacturers. Buyers of ghana and ivory coast cocoa agreed on wednesday to a minimum price of 2 600 per tonne as proposed by the two governments to address a perceived imbalance between farmers incomes and. On 12 june the two countries agreed a price floor of 2 600 per tonne of cocoa produced.
The political rationale for the agreement is clear. The negotiations carried through for about two years and saw a successful conclusion in 2019 with 2 600 set as a floor price for a tonne of cocoa beans. Obafemi oredein a cocoa specialist in nigeria points out in ieg vu s global outlook for 2019 that the 40 fall in global cocoa prices in 2017 was a direct result of excess cocoa supply especially by côte d ivoire. In december cocoa futures reached a 52 week low point of 1 821 per ton while the 52 week high during the period ending today was 2 447.
A cocoa price floor of 2 600 per tonne agreed by ivory coast and ghana with buyers for the 2020 21 season lacks the support of other producing nations the vice president of the world cocoa.
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