Ghana and Ivory Coast, who are the world’s top two cocoa growers on Tuesday suspended the sale of cocoa beans to the open market under the 2020/2021 crop season until further notice.
The suspension, announced to stakeholders in the cocoa value chain, including traders, processors and chocolate manufacturers, is part of efforts by the two countries to get a fair price for farmers, according to news channel, Graphic Online.
The two countries had earlier proposed a floor price of $2,600 for every tonne against the International Cocoa Organisation’s price that is averaging $2,436.
Ghana and Ivory Coast who account for 65% of global cocoa supplies, argue that the current pricing structure that makes cocoa producers price takers does not reflect their contribution to the sustenance of the cocoa industry.
A formal decision on the floor price is expected on Wednesday, as the two producers take on almost 300 representatives of stakeholders in the cocoa value chain, by categorically agreeing that neither Ivory Coast nor Ghana will sell their produce in the international market below the agreed minimum price.