Sep 7, 2020
The governments of the Ivory Coast and Ghana, according to the sources, have apparently joined in unison to create a new arm designed to set market prices for cocoa, to fight child labour issues and improve research between the two African countries.
The Ivory Coast and Ghana are the largest cocoa producers in the world accountable for 60% of world trade and have been exploring for some period how greater combined initiatives, which has led to the creation of the new Ivory Coast-Ghana Cocoa Initiative.
The Main aim of the newly formed arm will be jointly represent the common interests of the two countries on international markets, which has led to the development of the so called Living Income Differential, a premium of $400 dollars per ton paid by confectionery groups starting from this October.
Seemingly, as both the governments have accredited, raising farmer payment remains the top priority given that many agricultural workers’ earnings remain trapped below UN-defined poverty levels that has threatened the future sustainability of the workers and cocoa industry. This low-paid situation has had a noteworthy effect on the sector. Many workers belong to older generation on the cocoa field while younger populations seek better paid work in urban cities.
The creation of the new Ivory Coast-Ghana Cocoa Initiative is set to take effect before the new growing season on 1st October 2020, with the increase in ‘farmgate’ prices also said to be aimed at addressing issues of smuggling between the two countries which they share are connecting borders.
As emphasized by the International Cocoa Organisation’s latest quarterly production statistics, which showed that cocoa production forecasts for the 2019/2020 growing season showed that global levels were expected to be at 4.75 million tons for the year, with a revised tally forecast for 4.72 million, down 1.2%, as confectionery manufacturers reduce purchasing amid the global coronavirus pandemic, henceforth affecting the total market worldwide.