Cocoa: Cote d’Ivoire and Ghana to boost cooperation to be more resilient to price volatility
(Ecofin Agency) - Battered by the volatility of the international cocoa market, despite their position as largest suppliers of the commodity (60% of the world’s output), Ghana and Cote d’Ivoire have decided to boost their cooperation. This was told Reuters by the respective heads of the Coffee-Cocoa Council of Cote d’Ivoire (CCC) and Ghana’s Cocoa Board (Cocobod).
The reinforcement should take place via periodic meetings between the two entities and the establishment of a technical committee. The latter will be tasked with developing measures that will help better manage production and insure the sustainability of the sector.
For Cote d’Ivoire, world’s number one cocoa producer, developing solutions to be more resilient to price volatility in the market is most vital as it wants to curb the fall in revenues derived from cocoa exports. Indeed, the decrease in cocoa export earnings began in 2016 as a result of a 30% slump in the prices of the commodity (since July that year). In this context, last March 27th, the government said it plans to seek financial assistance from the International Monetary Fund (IMF).
It should be recalled that cocoa contributes to about 15% of Cote d’Ivoire’s GDP and 7% of Ghana’s.