To protect farmers, the world`s two largest cocoa producers have agreed to coordinate cocoa bean prices in 2020-2021. Like OPEC, whose control of crude oil production has largely fuelled world oil prices since 1960, the decision of the world`s two largest cocoa producers to join forces is expected to increase the cost of candy bars, ice cream and cakes. The chocolate block with two nations decided to charge an additional $400 a tonne of cocoa, which currently costs about $2,500 a tonne. A joint initiative has enabled Ghana and Côte d`Ivoire to convince chocolate traders and producers to raise the price of cocoa. An asset for Ghana and Côte d`Ivoire, which are successfully implementing long-term sustainable development initiatives aimed at providing decent livelihoods for both cocoa farmers and farmers. Already in July 2019, the Coffee and Cocoa Council (CCC) of Côte d`Ivoire and the Ghana Cocoa Board (COCOBOD) successfully set up a price mechanism to help producers earn a living. Their suspension from the sale of cocoa beans had a negative impact on world prices, to the point that chocolate distributors and producers accepted, in less than a month, the idea of a premium of $400 per tonne for all cocoa sales contracts. Cocoa merchants and brokers call the plan the biggest overhaul of the global cocoa market in decades – from the beginnings of cocoa bean growers to the end with a consumer catching a chocolate bar. Last year, Ghana increased its capacity from 250,000 to 400,000 tonnes. However, 80% of the cocoa market`s revenues are generated during secondary processing (cocoa pasta production), which still does not exist on an industrial scale, leaving much room for improvement. Better yields for cocoa farmers. Ghana and Côte d`Ivoire, in order to implement upward the adjustment of cocoa prices in their respective sectors. Together with Côte d`Ivoire and Ghana, the world`s two largest cocoa producers, and Nigeria, fifth behind Ecuador and Cameroon, ECOWAS member countries account for 68% of the world`s cocoa supply.
In other words, during the 2019-2020 season, 3.4 million tonnes were harvested, out of a global total of 5 million tonnes. The countries of West Africa, Côte d`Ivoire and Ghana, which together produce more than 60% of the world`s cocoa, have teamed up to form their own chocolate version of the Organization of Petroleum Exporting Countries. On that day, Ivorian President Alassane Ouattara and his Ghanaian counterpart Nana Akufo-Addo signed the Abidjan Declaration, creating «an OPEC for cocoa». Through this partnership, Côte d`Ivoire and Ghana – which together produce 65% of the world`s cocoa – will harmonize their sales policies to have a greater impact and increase their revenues. This project was launched after meetings and discussions with all relevant partners who participated in the production and processing of cocoa in both countries. On Wednesday, Ghana and Côte d`Ivoire suspended the pre-sale of cocoa beans for the 2020/21 season until an agreement is reached on the price of the soil. Industry representatives met this week in Accra, Ghana`s capital, to discuss a common base price for cocoa beans produced in Ghana and Côte d`Ivoire that would protect farmers` livelihoods. While these three West African nations have significantly increased their cocoa production over the past 20 years, cocoa producers and trade associations in Côte d`Ivoire and Ghana did not conclude their first strategic partnership agreement until 26 March 2018. In addition, both partners intend to build warehouses where crops can be stored later until they are sold on the market.