Cocoa industry accepts minimum price set by Ghana & Côte d'Ivoire

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18 June 2019

Ghana, Ivory Coast cocoa floor price seen as small step toward ending child labour

Author: Nellie Peyton, Thomson Reuters Foundation

"Ghana, Ivory Coast cocoa floor price seen as small step toward ending child labour", 14 June 2019

Ghana and Ivory Coast's move this week to set a minimum price for cocoa beans could help reduce child labour, though it will not be enough on its own, advocates said on Friday.

The two West African countries, which together supply about 65 percent of the world's cocoa, proposed a floor price of $2,600 per tonne in an effort to improve the livelihoods of poor family farmers who produce for major chocolate companies...

...About 1.6 million children are estimated to work in cocoa production in Ivory Coast and Ghana, some for their parents and some trafficked from other countries, according to a 2018 report by the Walk Free Foundation.

Poverty is a root cause, leaving many cocoa farmers unable to hire adult workers, said the anti-slavery organisation...

Setting a minimum price will make a difference only if it is part of a broader strategy to help farming communities, said Matthias Lange, ICI programme and policy director.

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18 June 2019

The Cocoa industry accepts the minimum price for a tonne of cocoa as demanded by Cote d'Ivoire and Ghana

Author: Africa News

"Cocoa industry stakeholders accept price dictated by Ghana, Ivory Coast", 13 June 2019 

Ghana and Ivory Coast...announced that they had won concessions from stakeholders in the cocoa industry, including acceptance of a $2,600 floor price for a tonne of cocoa. The two nations had threatened to stop selling their production to buyers unwilling to meet a minimum price. Following a two-day meeting called by the two top cocoa producers who together account for over 60% of the world’s production, Joseph Boahen Aidoo, chief executive of the Ghana Cocoa Board, told a news conference that their demands had been accepted in principle by the participants...

“Ivory Coast and Ghana have suspended the sale of the 2020/2021 crop until further notice for preparation of the implementation of the floor price,” he said. Calling the move “historic”, he said that “this is the first time when the producers have called consumers and the first time whereby suppliers have called buyers to come and engage on price,” he said. “Over the years it has been the buyers who have determined the price for the suppliers.” Aidoo added that there would be a follow-up meeting to work out how to implement the agreement. The world’s chocolate market is worth around $100 billion, of which only $6 billion go to cocoa producers...

Ghana and Ivory Coast, who are the world’s top two cocoa growers on Tuesday suspended the sale of cocoa beans to the open market under the 2020/2021 crop season until further notice. The suspension, announced to stakeholders in the cocoa value chain, including traders, processors and chocolate manufacturers, is part of efforts by the two countries to get a fair price for farmers...The two countries had earlier proposed a floor price of $2,600 for every tonne against the International Cocoa Organisation’s price that is averaging $2,436. Ghana and Ivory Coast who account for 65% of global cocoa supplies, argue that the current pricing structure that makes cocoa producers price takers does not reflect their contribution to the sustenance of the cocoa industry... 

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