The West African nation has raised its farm gate price for cocoa by 21% after implementing a $400 per metric ton payment on futures prices for the 2020 and 2021 harvest, a source noted.
Between 2018 and 2019, Ghanaian cocoa output totalled 815,000 tonnes. Despite the COVID-19 pandemic, Ghana Cocoa Board (COCOBOD) reported a total purchase of 742,725 tonnes for the 2019 and 2020 cocoa season as of June 4, 2020, according to the International Cocoa Organization (ICCO) [Chart below].
Meanwhile, Côte d’Ivoire, as of August 3, 2020, cumulative cocoa records, since the 2019 and 2020 season started, established 2.043 million tonnes, down by 5.4 per cent from the 2.160 million tonnes reached during the same period the previous season.
The International Cocoa Organisation’s latest quarterly production statistics, which showed that cocoa production forecasts for the 2019 and 2020 growing season showed that global levels were expected to be at 4.75 million tonnes 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.
The governments of the Côte d’Ivoire and Ghana have reportedly joined forces to create a new body designed to set cocoa market prices, combat child labour and enhance research between the two West African nations.
According to report, the latest joint venture emerged following calls for enhanced farmer payments championed at last year’s meeting of the European Cocoa Association, which was attended by Confectionery Production.
Growers of cocoa beans in the world’s second-largest producer of the crop will receive 625 cedis ($108) per 64-kilogram bag, or 10,000 cedis per ton, for the harvest season that begins Oct. 1 and continues through Sept. 2021 after the so-called Living-Income Differential (LID) was charged on the beans, a premium of $400 dollars per tonne paid by confectionery groups.