Ivory Coast Establishes Cocoa Farmgate Price for 2023/24 at 1,000 FCFA

Ivory Coast Raises Cocoa Farmgate Price by 11.1% for 2023/24 Season

In a significant development for the cocoa industry, Ivory Coast, the world’s leading producer of cocoa beans, has increased its cocoa farmgate price by 11.1%, setting it at 1,000FCFA ($1.62) per kilogram for the upcoming 2023/24 crop season. This announcement was made by the Minister for Agriculture and Rural Development, Kobenan Kouassi Adjoumani, who also revealed a new farmgate price of 900 CFA francs/kg for coffee, representing a 20% increase.

Ivory Coast, known for its vital role in global cocoa production, is facing a challenging season with a projected 20% drop in cocoa production due to adverse weather conditions and disease. The just-concluded 2022/23 season is expected to yield approximately 1.8 million metric tons, significantly lower than the annual average of about 2.25 million tons in recent years.

Anticipating this announcement, cocoa farmers in the country had advocated for a substantial increase in the farmgate price. The Ivorian Platform for Sustainable Cocoa (PICD), representing cocoa producers, had expressed their expectation of a 44.44% raise from the existing farmgate price of 900FCFA per kilogram.

According to PICD, considering cocoa’s strategic importance in the Ivorian economy and recent international price trends, farmers were hoping for a minimum price of 1,300FCFA ($2.12) per kilogram for the main 2023/24 season. This expected farmgate price translates to $137.8 per bag of 65kg of cocoa beans.

Comparatively, the previous farmgate price, announced in October 2022, equated to $1.33 per kilogram, representing a 9% increase over the preceding season’s rate, which many farmers considered insufficient.

The Ivorian Platform for Sustainable Cocoa (PICD) is a network comprising 55 cocoa farmer cooperatives and 11 non-profit non-governmental organizations.

In the region, Ghana, the second-largest cocoa producer, had previously announced a substantial 63.6% increase in its producer price for the 2023/24 cocoa season, set at GHS1308.99 ($113) per 64kg bag. This significant price hike was aimed at addressing smuggling issues and safeguarding the interests of cocoa farmers. The price disparity between Ghana’s cocoa producer price and those of its neighbors, Ivory Coast and Togo, had been identified as a driver for cross-border smuggling.

Both Ivory Coast and Ghana have faced challenges in cocoa production due to diseases and adverse weather conditions, leading to a slump in production. These developments are contributing to upward pressure on cocoa futures, which recently reached 46-year highs, according to the International Cocoa Organization (ICCO). These supply-side issues are expected to impact global cocoa prices in the near future.

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