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Business News Tue, 12 Nov 2019

Ghana, Cote d’Ivoire cocoa partnership yielding dividends – Akufo-Addo

The strategic partnership entered into between Cote d’Ivoire and Ghana has begun yielding dividends in cocoa production and marketing policy, President Nana Akufo-Addo has said.

A living income differential of 400 dollars per tonne will be paid to farmers for all categories of cocoa beans from Ghana and Cote d’Ivoire for the 2020/2021 crop season when implementation of the new price mechanism begins.

Under that, cocoa from the two countries will be sold 2,600 dollars per tonne.

This policy, Nana Akufo-Addo said, has found support even from major chocolate producers like Mars, who recognize the need to make the cocoa industry sustainable.

He made this known at the African Investment Forum’s “Invest in Africa’s Space” event, on Monday when a question was posed to him.

With Ghana and Cote d’Ivoire responsible for 65% of the world’s output of cocoa, and with the global chocolate industry worth some 100 billion dollars, he noted that it is not right that the farmers, whose hard work and toil is responsible for growing the cocoa, get only 6 billion dollars for their effort.

“Very fortunately for me, the Ivorian leader, Alassane Ouattara, had the same point of view as myself. We found out that we have a mutual assessment of what was the reality, and the need for us to do something about the reality,” he said.

He continued, “As a result of talks in Abidjan and in Accra, we came to a mutual understanding as to what we needed to do, which was fuse the production and marketing policies of our two countries, COCOBOD and Conseil du Café-Cacao. They are insisting that, in future, we will enter the market at a certain basic floor price, and hold that price, and, then, out of it, find the opportunity to increase the earnings of our farmers.”

The President told the gathering that the two countries now have an opportunity to pay their farmers a 400 dollars bonus, called the Living Income Differential per tonne, and enhancing the incomes of their cocoa farmers so that they get more out of this $100 billion industry.

President Akufo-Addo thanked the African Development Bank, which is supporting Ghana and Cote d’Ivoire to enhance their infrastructure in the cocoa industry, by helping secure greater capacity for warehousing, enhance processing of the raw material, and, therefore, be able to participate in the higher end of the value chain.

“The end result of all of this will be a considerable enhancement of the incomes of our cocoa farmers, and, fortunately, the more progressive elements of the world industry have seen the value of the policy. Mars, the US company which is one of the biggest players of the industry, have come out openly to support the policy that Ghana and Cote d’Ivoire have evolved together, saying it is the way to ensure a sustainable industry,” he added.

Source: 3news.com
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