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https://theconversation.com/cocoa-prices-are-surging-west-african-countries-should-seize-the-moment-to-negotiate-a-better-deal-for-farmers-214305>
"The global price of cocoa is spiking, a direct response to dwindling cocoa
output in west Africa. In September, cocoa futures reached a 44-year price peak
due to mounting concerns over reduced supplies from the region.
The price surge could prove to be a critical moment for cocoa farming and
policy in west Africa.
The cocoa-producing belt of west Africa is responsible for generating over 80%
of the total global output. Between them, Ghana and Côte d'Ivoire contribute
more than 60% to the global output. Ghana is the second-biggest producer in the
world and cocoa is a vital component of the country’s economy.
The global price spike has led west African governments to increase the
guaranteed producer prices to farmers. Ghana recently raised the
state-guaranteed cocoa price paid to farmers by two thirds. The announcement
means that Ghana’s cocoa farmers will be paid 20,943 cedis (US$1,837) per tonne
for the upcoming 2023-2024 season, up from 12,800 cedis.
Cameroon, the world’s fourth-largest cocoa producer, raised the price cocoa
farmers get to 1,500 CFA francs (US$2.50) per kilogram, a 25% jump from the
previous rate of 1,200 CFA francs. This increase is even more significant than
Ghana’s when factoring in Cameroon’s single-digit inflation. Additionally, the
Cote d'Ivoire government has announced a rise in the producer price.
As an economics researcher who has extensively studied and written about cocoa
production in west Africa, I contend that the recent shortages can be harnessed
to strengthen the position of cocoa producers. This will enable them to address
the structural challenges ingrained in the cocoa production value chain. Rising
production costs have not been recognised in the value of cocoa beans. Farmers
therefore haven’t been able to earn enough income and this has led to
unsustainable farming practices.
In my view, west African countries should use the cocoa shortage as negotiating
leverage against multinational corporations to address these structural issues.
Both Ghana and Côte d'Ivoire must recognise this pivotal moment. They must take
the lead, and frame the current production challenges as deep-seated structural
problems requiring solutions, rather than as short-term issues."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
