Despite Cote d’Ivoire’s recent increase in the fixed farmgate price for cocoa farmers to a record high, industry stakeholders believe the move falls short of expectations.
On Monday, the Ivorian Agriculture Minister announced that the farmgate price for cocoa would rise to 1,800 CFA francs ($3.09) per kilogram for the main crop, up from 1,000 CFA francs. However, the local association of coffee and cocoa producers expressed dissatisfaction, stating that the increase does not fulfill their demands.
The association has called on President Alassane Ouattara’s government to honor its commitment to set the purchase price of cocoa and coffee at 60% of the CIF (cost, insurance, freight) price, which represents the cost of goods at the border of the importing country.
With cocoa production in West Africa down by 25% during the 2023/24 season, according to Agriculture Minister Kobenan Kouassi Adjoumani, cocoa prices surged, reaching an all-time high of over $10,000 per ton earlier this year.
Ivorian producers argue that if the 60% CIF rule were enforced, the farmgate price should be at least 5,000 CFA francs per kilogram.
Cote d’Ivoire remains the world’s largest cocoa producer.