Cocoa Producers Must Adopt Common Price Strategy

Mr. Hope Sona Ebai, the Secretary General of the Cocoa Producers Alliance, says there is the the need for cocoa producing countries to adopt new marketing strategies to enhance the price of the commodity on the world market.

Briefing the press in Accra, on the 40th anniversary celebration of the Alliance, which falls on October 14 to 16, this year, Mr Ebai, a Cameroonian, said although the 10 countries in the Alliance produce over 80 per cent of the world output yet they have no such control over the market price.

Its main focus would be to re-position the Alliance to achieve the traditional goals of ensuring adequate supplies to the market at remunerative prices, promote cocoa consumption and discuss common problems to foster social and economic relations among the producing countries.

Cote d'Ivoire, Ghana and Brazil all major cocoa producing countries are members of the Alliance.

Mr. Ebai said, "It is time to organise, time to force and make changes in the world market".

The new strategy must not seek to interfere with the general direction of world market trends but should promote and strengthen the welfare and interest of producing countries.

He attributed poor prices of the commodity on the international market to lack of storage facilities that would enable countries keep their produce for longer periods, especially during seasons of glut and to release them when needed to maintain market equilibrium and boost prices.

Also, development pressures on governments of member countries make it difficult to cut production since they must make more money to meet the demand of the citizenry, he said.

This, however, he said, is the tragic economic logic since increased supply to the market inevitably forces the price down while the lack of cocoa consumption culture among citizens of the producing countries is also a contributory factor.

Mr. Ebai said although those inhibiting factors are well known yet the political will to do just that must come from member governments to overcome the price problems.

He said the recent efforts to implement an agreed production management plan among member countries by which each was given different production quota had begun to show positive signs in the price increases in world market.

"More could be achieved if member countries could go

all out to adopt pragmatic tactics to regulate and influence the world market price of the commodity".

The theme for the celebration is: "Sustainable Cocoa Economy, Means Towards Poverty Alleviation."