While Cote d'Ivoire raised the fixed farmgate price paid to cocoa farmers to a record high, actors of the sector say it is not enough.
Ivory Coast: Rising cocoa farmgate price fails to convince
A farmer checks cocoa pods at his farm inside the conservation zone in the Omo Forest Reserve in Nigeria on Aug. 2, 2023.
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The Ivorian Agriculture minister announced Monday that cocoa farmgate price will now be at 1,800 CFA francs ($3.09) per kg for the main crop, up from 1000 CFA francs.
However, the move has failed to meet the expectations of the local association of coffee and cocoa producers.
They have been demanding president Alssane Ouattara's government keeps its word and set the purchase price per kilogram of coffee and cocoa at 60% of the CIF price.
The CIF price; stands for cost, insurance, freight is the price of goods at the border of the importing country.
The 2023/24 season was marked by a 25% drop in cocoa production in West Africa, Ivorian agriculture minister Kobenan Kouassi Adjoumani said.
Consequently, the price for cocoa on the futures exchange hiked, it hit an all-time high of over US$10,000 a ton in the first quarter of this year.
Ivorian producers say the farmgate price should at least be at 5,000 CFA francs per kilogram if the 60% CIF rule was enforced.
Cote d'Ivoire is the world biggest cocoa producer.