Cocoa Buyers To Pay US$400 Extra
The Chief Executive of Ghana Cocoa Board, Joseph Boahen Aidoo has disclosed that, buyers of Ghana-Cote d’ Ivoire cocoa beans would be expected to pay an extra US$400 as Living Income Differential to better the livelihoods of cocoa farmers in their respective countries in the ensuing 2020/21 crop year.
Mr. Aidoo said the decision was arrived at during a stakeholders meeting held in Cote d’ Ivoire. The stakeholders meeting follows a meeting spearheaded by the two countries in Accra to introduce the concept of a floor price of US$2,600 average achieved gross FOB (US$2,700 CIF) for cocoa.
The COCOBOD Chief Executive made the disclosure when he interacted with a section of the Ghanaian media at a press briefing at Cocoa House in Accra.
The quest for a floor price will enable the two countries plough back some of the revenue at the high end of the supply chain.
The two countries further agreed to legislate a guaranteed minimum price of 70% of the floor price of US$2,600 ofthe average achievedgross FOB (US$2,700 CIF) per tonne for cocoa farmers.
Joseph Boahen Aidoo further explained that, when the achieved average Gross FOB price at the end of the Cocoa Season is between the minimum price level of US$2,600 ($2,700 CIF)-$2,900($3,000 CIF), the farmer would be entitled to bonus payments.
He hinted that a Stabilization Fund Account shall be established under the Cocoa Initiative of both countries. He further stated that a Charter would provide the framework that will guide the operations of the funds under a secretariat.
Responding to a question on how revenues from the account will be used, he said, revenues from the Stabilization Fund would be used to cushion farmers when the price per tonne of cocoa for the season falls to US$ 2,200 average achieved Gross FOB in addition to providing some essential amenities in line Corporate Social Responsibility Programmes of both countries.