Ivory Coast’s President, Alassane Ouattara, has decided to raise the official cocoa farm gate price to 1,500 CFA francs per kilogram, equivalent to $2.47, starting from Tuesday, April 2, 2024.
This decision follows a government meeting held on Saturday, March 30, 2024, as reported by Accra-based media house Asaase Radio.
Initially, President Ouattara had considered an increment between 1,100 and 1,200 CFA per kilogram before revising the decision and opting for a higher price.
Despite efforts to contact the government and the Cocoa regulator, the Coffee and Cocoa Council (CCC), for comment on Sunday, no response was received.
Cocoa prices have significantly increased over the past year due to disease and adverse weather, leading to a third successive global market deficit.
However, the official farm gate price in Ivory Coast, one of the top cocoa producers, had not reflected this trend.
A director of a European export company informed Reuters, “There were several proposals on the table, and as a last resort, the President wanted the highest possible price for the producers, so he decided on 1,500 CFA per kilogram instead of the previously validated 1,200 CFA.”
Another director of an international export company stated to Asaase Radio, “The president judged the world market situation to be exceptional and wanted an exceptional reaction too.”
This decision is considered the best possible price that the CCC can offer, given the challenges in changing prices during the season in Ivory Coast.
