Ghana and Ivory Coast had won concessions from stakeholders in the cocoa industry. They wanted to have a US $2,600 floor price for a tonne of cocoa, which is accepted by the stakeholders. The two nations were to stop selling their cocoa production to buyers unwilling to meet a minimum price. The two top cocoa producers of the world, Ghana and Ivory Cost – together account for over 60% of the world’s production. Buyers always called the shots for price determination. To retaliate against the low floor prices, the two countries have decided to suspend the sale of the 2020/2021 crop to exert pressure on buyers. Of the total chocolate market of US$ 100 billion, cocoa farmers end up by getting a paltry US$6 billion. The rest is wrested by the stakeholders at various levels.
The two countries were pitching for US$2,600 for every tone. The quote of International Cocoa Organisation’s was US$2,436. The current pricing structure does not count cocoa producers as a major stakeholders but as weak price takers, which is decided elsewhere. It is to be seen whether the proposed structure will change the narratives. The point is how long the farmers, who are mostly marginal ones, can hold on to the promise of not selling the stock, against huge deprivation they have to put up with .
