Cocoa Pricing In Africa Ghana and Ivory Coast to tackle cocoa price volatility

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Ghana and Ivory Coast contribute hugely to global cocoa production but cocoa price volatility has been unfair to the two West African nations. This development has seen both countries come together to work on cocoa pricing.

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It is undeniable that Ghana and Ivory Coast are the largest producers of cocoa in the world, with the two countries producing over 60 percent of the global share.

However, cocoa price stability has been unfavourable to these two countries.

Ivory Coast produced a total of 1.7 million metric tonnes of cocoa and Ghana produced some 840,000 tonnes in 2016 production year.

 

Ghana is targeting to hit one million metric tonnes for the 2016/2017 production year.

READ ALSO: Oxford Business Group warns Ghana of drop in cocoa production

Currently, reports say the average cocoa prices reflect a drop of around 30 percent compared to mid-2016.

During the Cocoa and Coffee Council meeting in Abidjan, the two top cocoa producing countries have therefore agreed to deepen collaboration and coordinate their production strategies in order to tackle price volatility.

play Massandje Toure-Litse

 

Massandje Toure-Litse, director general of the Coffee and Cocoa Council of Ivory Coast reportedly told journalists in Abidjan.

“It’s become imperative that our countries take decisions on points concerning production and sustainability and on points concerning the prickly question of the volatility of prices.”

play Joseph Boahen Aidoo

 

Joseph Boahen Aidoo, the CEO of Ghana’s COCOBOD, signed on behalf of Ghana with Toure-Litse signing for Ivory Coast.

 

Africa produces about 75 per cent of the world’s cocoa, but only 20 per cent of the grinding process takes place in Africa.

READ ALSO: Cocoa prices off to a bad start in 2016.... Brokers say selling is driven by algorithmic traders

With Africa's annual $100 billion value of the world’s chocolate industry, only two per cent comes to Africa.

 

Meanwhile, about 85 percent of the cocoa feeding the multi-billion euro chocolate industry in The Netherlands comes from African countries, with Ghana and Ivory Coast being the largest producers.

In 2015, The Netherlands exported €2.8 billion worth of chocolate, semi-finished and cocoa butter products.