The Ghana Civil-Society Cocoa Platform (GCCP) has commended the Ghana Cocoa Board (COCOBOD) and its counterpart in Cote d’Ivoire, Le Conseil du Cafe-Cacao (CCC) for agreeing on a floor price (minimum price) of $2,600 per tonne of cocoa beans.
According to the GCCP, The move by the two leading cocoa producer is historic feet and needs to be applauded by all, since it remains the first time the two leading cocoa producer countries have jointly decided on a floor price.
Ghana and Ivory Coast have succeeded in getting an agreement with global processors and marketers for the floor price of cocoa beans to be pegged at $2,600 per tonne.
This follows an intensive two-day stakeholder engagement which hitherto ended in a snag on the first day.
To this end, the two major cocoa producers – Ghana and Cote D’Ivoire, have agreed to “suspend the sale of the 2020/2021 cocoa beans to pave way for the implementation of the floor price”.
Below is the Release:
GHANA CIVIL-SOCIETY COCOA PLATFORM (GCCP) STATEMENT IN RESPECT OF THE JOINT PROPOSAL BY THE GHANA COCOA BOARD AND COTE D’VOIRE’S LE CONSEIL DU CAFE-CACAO REGARDING A COMMON FLOOR PRICE FOR COCOA BEANS.
For Immediate Release
The Ghana Civil-Society Cocoa Platform (GCCP) commends the Ghana Cocoa Board (COCOBOD) and its counterpart in Cote d’Ivoire, Le Conseil du Cafe-Cacao (CCC) for agreeing on a floor price (minimum price) of $2,600 per tonne of cocoa beans, and further proposing to buyers/processors/chocolate manufacturers on 12 June, 2019.This is a historic feet and needs to be applauded by all, since it remains the first time the two leading cocoa producer countries have jointly decided on a floor price.
We acknowledge the various processes that yielded this results- including the initial engagements between the governments of Ghana and Cote d’Ivoire that has deepened cooperation between the two regulators, COCOBOD and CCC.
Our greatest joy in this milestone is to see direct and obvious change in the farm gate price of cocoa beans, such that farmers income and living standard will improve, therefore directly contributing to the attainment of several of the global development goals (SDGs) including, goals 1, 2, 3, 4, 8, 13. The floor price is very paramount to the livelihoods of cocoa farmers, especially in the wake of the debate on living income for cocoa farmers. We believe that this development is in the best interest of cocoa farmers and their households, since it will at least, offer the farmer a fair share of the wealth that the cocoa industry generates.
We call on the international cocoa sector to support the governments of Ghana and Côte d’Ivoire to push for the implementation of the floor price. More importantly, we call on our brothers and sisters from civil society in other cocoa producing countries to stand in solidarity with us and ask their governments to support this minimum price for all cocoa farmers
The GCCP once again congratulates the COCOBOD, and we believe that the upcoming technical meeting with stakeholders to fine tune the full implementation of the floor price on the global cocoa market, slated for July 3, 2019, would prove that farmers are at the center of this initiative and must benefit as such.
We however wish to suggest to COCOBOD and CCC to include in the agenda of the upcoming floor price implementation meeting on July 3, 2019 its strategies/mechanisms to curb the possible imbalances in the cocoa sector as a result of the floor price. Attempts to regulate market forces typically end up failing, and sometimes even creating worse conditions in the long run. There is a long history of failed intervention in commodity markets, including cocoa, where price legislation resulted in excess supply/production, lowered demand, and an upsurge in stocks.
About the Ghana Civil-Society Cocoa Platform (GCCP):
The Ghana Civil-society Cocoa Platform (GCCP) is an independent campaign and advocacy platform for civil society actors in the cocoa sector – comprising of Civil Society Organizations, Non-governmental Organizations, Community-based Organizations, Farmer-based Organizations, Farmer Associations, Media and interested individuals. The main aim of the platform is to advocate and influence cocoa sector policies and programmes. GCCP is currently being hosted by SEND Ghana, with membership across the country, especially in cocoa growing areas.