Ivory Coast is expecting a good cocoa crop this year thanks to conducive weather, which can help growing conditions. Cocoa farmers feel that the sunny weather is good for the crop if the rise in temperature does not bring in excessive rains.
Ivory Coast is the world’s top cocoa producer. The dry season of the country between mid-November to March, when rain is scarce or light is the best climate for the crop.
The cocoa price fixing is complex and most often the cocoa producing countries are at the mercy of chocolate and bakery industry, despite many steps being taken by the producing countries. For instance, the two West African neighbors- Ivory Coast and Ghana – a few months ago fixed a minimum price of US$2,600 per tonne (free-on-board) that chocolate companies must pay from the 2020/21 season in case their requirements exceeds 60% share of global supply. The decision was to end the poverty being faced by the cocoa farmers, who get a pittance while selling their produces. Companies who agreed to this arrangement were chocolate majors including Hershey, Mars Inc., Blommer Chocolate, Cemoi, SucDen, Mondelez International , Touton, Barry Callebaut, Cargill [CARGIL.UL] and Olam International and Ecom Trading.
Both Ivory Coast and Ghana said that they would institute a US$400 per tonne as Living Income Differential chargeable on export contracts that would trigger if market prices fall below US$2,600. Still, a Fairtrade International survey last year revealed that just 12% of Ivorian cocoa-farming households earned US$2.50 per person per day, finding difficulties to make both end meet.
