2023-10-03 10:01:19
From our correspondent in Abidjan – The price of a kilo of cocoa for the 2023-2024 campaign has been set at 1,000 CFA francs (i.e. 1.52 euros), which represents an increase compared to 900 CFA francs for the previous campaign. This increase, however, remains below the expectations of industry players. With international cocoa prices having increased considerably in 2023, the Ivorian Platform for Sustainable Cocoa had pleaded with the government in favor of a minimum price of 1,300 CFA francs per kilo. The objective was to support local producers and reduce the risk of cocoa beans leaking to neighboring countries.
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Several dozen cocoa producers were present at the sixth edition of the Abidjan International Exhibition of Agriculture and Animal Resources (Sara 2023), Saturday September 30, to listen to Kobenan Kouassi Adjoumani, Minister of Agriculture and Rural Development , at the Abidjan exhibition center which houses the largest agricultural meeting in Africa. However, it is with a touch of disappointment that these producers left the launch ceremony of the new 2023-2024 coffee and cocoa campaign. Slightly sad faces betrayed the desolation of the producers, who were hoping for a price higher than that announced.
“An increase of 100 CFA francs (0.15 euros) is good, but we were hoping for a little more […]. We thank the government for its efforts, it is true that Ghana, Liberia and Guinea have much higher prices, but the government has its reasons which we do not know. We hope that there will be other increases,” said Bernard Kouassi Kouamé, president of the National Platform of Coffee-Cocoa Producers’ Organizations.
Since the start of 2023, the price of a tonne of cocoa on the international market has continued to increase, going from 2,560 dollars (2,425 euros) in January to 3,660 dollars (3,467 euros) in September on the New York market. Given the strategic place of cocoa in the Ivorian economy and price developments on the international market for several months, stakeholders had advised the government a minimum farm gate price of 1,300 CFA francs (1.98 euros) for cocoa. main campaign 2023-2024, instead of the 1,000 CFA francs (1.52 euros) announced, explains Pauline Zei, coordinator of the Ivorian Platform for Sustainable Cocoa (PICD). Created in 2020, it brings together eleven civil society organizations and fifty-five agricultural producer organizations.
For professionals in the sector, the margins on a kilo of cocoa remain minimal. Production costs absorb 80% of the purchase price. The PICD estimates that the farm gate price of cocoa should represent at least 70% of the international price to guarantee the viability of the industry and the need to strengthen governance within cooperatives to ensure transparent and equitable management of income generated by the sale of cocoa.
Pressure on farmers
When farmers’ income is not supported, the risks for those involved in the sector are numerous, starting with the flight of products to neighboring countries, notably Liberia, Guinea, Ghana, or even child labor. and deforestation. Ghana, the world’s second largest cocoa producer, has increased the farm gate purchase price for the 2023-2024 campaign to 1,126 CFA francs per tonne, thus supporting its country’s farmers.
The pressure on farmers is even greater today as they are also asked to respect traceability standards, which costs them even more. Désiré Adon, administrator of an agricultural cooperative in the Agnéby-Tiassa region with 593 members and cultivating cocoa on nearly 3,000 hectares, testifies to the positive impact of governance and traceability on small producers. However, he also emphasizes that traceability, although essential for the sustainability of the sector, entails additional costs for producers. These costs include sorting cocoa, hiring staff to enter data, and having to meet various requirements. Désiré Adon insists that for traceability to be effective, producers must be financially supported in the implementation of these practices.
The low income of producers constitutes a major challenge for the sustainability of the cocoa sector in Côte d’Ivoire. Some producers in the country have chosen to engage in direct contracts with end buyers, particularly cocoa processors and supermarkets. An approach that would shorten the cocoa marketing chain, but requires increased cooperation between industry players.
The Bandama Fair Trade Cooperative Society (Sceb) is a good example. Its managers managed to negotiate directly with a European buyer, who transforms cocoa beans into powder, butter, chocolate bars, etc. Which has considerably improved the income of its producers thanks to a higher purchase price. “We obtained 1,350 CFA francs per kilo due to organic certification, compared to the 900 CFA francs paid by Côte d’Ivoire,” proudly affirms Amon Marc Tanouh, the director of the Sceb. He adds that this differential has enabled significant investments within the community, such as the construction of houses, the purchase of motorcycles for increased mobility, the rehabilitation of housing for teachers and the construction of a maternity ward in the village. of M’Brimbo, in the department of Tiassalé.
A commitment to sustainability
Ivory Coast is strengthening its approach to environmental sustainability in cocoa and coffee production. A delegation visited Brussels in September to facilitate exports to the European Union, strengthen sustainability and combat imported deforestation, while supporting local producers. Yves Brahima Koné, director general of the Coffee-Cocoa Council – the equivalent of the sector’s policeman – wants to be reassuring: “The mission to Brussels was a success and we would like to thank the EU officials we met for their openness, their listening and the quality of the exchanges. We went there to show and explain what we were doing on the ground to meet European regulations. We explained what is in progress and what will be done here at the entry into force of these regulations on imported deforestation. Côte d’Ivoire has made enormous efforts and will be ready. We are working hard to meet the requirements of this regulation and above all to be classified as a country with low risk.”
In 2022, Ivory Coast produced 2.4 million tonnes of cocoa, almost 45% of global production, which contributes to more than 14% of the national GDP, also feeding 24% of the Ivorian population.
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