Cocoa: almost 10% increase in the purchase price to producers in 2022

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Cocoa: increase of almost 10% in the purchase price to producers in 2022

In Côte d'Ivoire, more than half of planters live below the poverty line, according to a World Bank study. The situation is comparable in Ghana, where some 800,000 families live off cocoa.

The purchase price of cocoa from growers in Côte d'Ivoire, the world's largest producer, has been set at 900 CFA francs (CA$1.75) per kilo at the start of the 2022 cocoa campaign. -2023, an increase of around 10%, the Ivorian sector regulator announced on Friday.

The farm gate price set for planters is 900 FCFA per kilogram of cocoa for the 2022-2023 campaign against 825 FCFA [CA$1.70] said Yves Koné, the director general of the sector's regulatory body, the Cocoa Coffee Council (CCC) of Côte d'Ivoire. #x27;Ivory.

This campaign opens in a context marked by the rise in inflation resulting from external shocks, underlined Mr. Koné during an official ceremony.

For his part, the Ivorian Minister of Agriculture Kobenan Kouassi Adjoumani deplored a worrying situation for planters in a global context marked by the Russian-Ukrainian crisis which affects all agricultural markets.

While input prices have risen sharply, product prices have fallen on international markets. This paradoxical market trend was an issue of concern for cocoa farmers, he added.

This is the second cocoa campaign after the establishment in 2021 by Côte d'Ivoire and Ghana, two West African countries which represent around 60% of the world's cocoa, of a body intended to guarantee a remunerative price to growers and ensure sustainability of the cocoa economy.

As of October 1, 2020, major corporations have pledged to pay farmers a “living income differential” of $400 per tonne.

In this context, the two countries have introduced the Decent Income Differential (DRD), a bonus of 400 dollars per ton (in addition to the market price) intended to better remunerate planters, millions of whom live in poverty in East Africa. #x27;West.

Farmers in tropical countries are the sector's poor cousins: they receive only 6% of the $100 billion a year global cocoa market and chocolate, locked by the big industrialists.

In Côte d'Ivoire, more than half of the planters live below the poverty line, according to a study by the World Bank. The situation is comparable in Ghana, where some 800,000 families live off cocoa.

Cocoa is strategic in Côte d'Ivoire: it represents 10% to 15% of GDP, almost 40% of export earnings and supports five to six million people, or a fifth of the population, according to the World Bank, which estimates that the cocoa sector must transform to ensure its future and play better its role as an engine of economic development.

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