Cocobod says the lifting of the ban on the sale of cocoa beans for the 2020/2021 crop season is based on a positive response Ghana and Ivory Coast have received from the international market.
The two largest cocoa producers a few weeks ago suspended the sale of cocoa beans for the 2020/2021 crop season while negotiating for an appreciation in the price of a ton of product on the international market.
After a series of meetings between officials of both Ghana and Ivory Coast, the two countries agreed to set a floor price for the beans at $2,600 per ton. Out of the figure, Cocoa farmers will get $400 dollars for every ton of cocoa beans they sell.
A ban was therefore placed on the sale of the beans from the two countries to ensure all stakeholders agreed to the floor price and other trading mechanisms. The move according to the officials, is to ensure that the livelihood of farmers is improved.
“After the meetings in June and early this month, we came to the conclusion that a new trading mechanism was understood by all parties and after that, we had to do the necessary communication which was done. So at this point in time, we are in the position to start trading and that is exactly what we’ve done,” Head of Public Affairs at Cocobod, Fiifi Boafo told Citi Business News in an interview.
Cocobod has expressed confidence the new trading mechanisms will be favorable to cocoa farmers in Ghana.
“The new trading mechanism will also come with a special component which is referred to as the Living Income Differential, $400 on every ton of cocoa. And the living income differential forms part of the total cost of a ton of cocoa. So exactly that, is going to happen at the beginning of the 2020/2021 sale of cocoa beans,” he added.