Ivory Coast’s President Alassane Ouattara is set to implement a significant increase in the official cocoa farmgate price, raising it to 1,500 CFA francs ($2.47) per kilogram from Tuesday, up from the current rate of 1,000 CFA, as reported by sources from five different export companies. The decision was purportedly made during a government meeting on Saturday, although the sources preferred to remain anonymous due to the sensitivity of the matter.
Initially, Ouattara had approved a proposal suggesting a price range between 1,100 and 1,200 CFA francs per kilogram before opting for a higher figure following further deliberation. Despite attempts to reach the government and the Coffee and Cocoa Council (CCC) for official comments on Sunday, no responses were obtained. Cocoa prices have surged over the past year due to disease outbreaks and adverse weather conditions, leading to a sustained global market deficit.
However, the official farmgate price for cocoa beans in Ivory Coast, one of the world’s leading producers, has yet to reflect this significant market shift. The decision to raise the farmgate price to 1,500 CFA per kilogram was reportedly driven by President Ouattara’s recognition of the exceptional circumstances in the global cocoa market, prompting an extraordinary response to support local cocoa producers.
The adjustment in farmgate price is viewed as a crucial step in ensuring fair compensation for cocoa growers in Ivory Coast amidst challenging market conditions and heightened global demand for cocoa products.