Ghana and Côte d'Ivoire join forces to set a common floor price for cocoa

Accra, 11 June, GNA – Governments of
Ghana and Côte d'Ivoire expressed their commitment on Tuesday to join efforts to
setting up a common floor price and a fair living income for cocoa farmers
address the high income disparity in the cocoa value chain.

Vice President Dr. Mahamudu Bawumia,
address the opening of the first commitment with cocoa industry stakeholders on
sustainable agricultural income in Accra on Tuesday, told both countries
accounting for 65% of world cocoa production, it was prudent to
to cooperate to meet common challenges in production and marketing
of cocoa.

The move, he said, would instill efficiency
cocoa production chain, to reduce poverty and to guarantee
good standard of living for small cocoa producers.

The fair trade data 2017 suggests a
living income of approximately $ 6,133 per year or $ 511.08 per month. For a medium
household size of six to eight, he proposed a daily income of between 2.63 USD and 2.12 USD.

The same source suggested that Ivorian
per capita per capita income of cocoa farmers of US $ 0.93, while their
counterparties earned between US $ 0.40 and US $ 0.45 in cocoa,
two-thirds of their household income.

Vice President Bawumia has therefore urged
forum participants to pledge to help answer calls to
to guarantee a vital income for farmers beyond the simple poverty line.

"We need to develop an agenda and a roadmap
to meet this challenge and hope to reach consensus with you on
this case, "he said.

The two-day meeting is at the request of
President Albadane Outtara of Côte d'Ivoire and President Nana Addo Dankwa
Ghana's Akufo-Addo, which attracted key stakeholders, including policy makers,
government officials, small cocoa farmers, traders, cocoa processors,
manufacturers and retailers.

Ghana Cocoa Board and The Council of
Café-Cocao of Côte d'Ivoire animates the debate on the proposals
setting up of a common price floor mechanism aimed at remedying the strong
income disparity in the cocoa value chain.

Inspiring from the creation of
Oil Producing Countries (OPEC), Vice President Bawumia felt that it
It would not be out of place to form cocoa producing countries (COPEC) to defend
the interest of cocoa producing countries.

He noted that a satisfactory price of
cocoa beans would largely complement government investments in
rural infrastructure and improve the welfare of cocoa producing communities.

He stated that the government and COCOBOD had taken
measures to improve the conditions of cocoa producers by implementing various
interventions to improve agricultural productivity, preserve the ecosystem and
discourage unethical work practices and believed their Ivorian counterparts
had adopted similar programs to promote the sustainability of the cocoa industry
and improve the standard of living of cocoa farmers.

"Trust in the Ghanaian economy is
very high. Strong macroeconomic performance and promising prospects have been
approved by the capital markets in our recent Eurobond issue.

"Foreign direct investment has remained
more than three billion dollars a year since 2011 and we look forward to
welcome more investment, "added the vice president.

The Vice President said that the Ghanaian economy
have achieved in a credible way in recent years, which has reduced the
rural poverty, with public deficits such as lending rate and inflation
on the path of reduction.

Mr. Joseph Boahen Aidoo, Executive Director
Ghana Cocoa Board, in its welcome address, stated that the discussion would help
strike a balance between sustainable cocoa production and reasonable prices
vital income for small cocoa producers.

He believed that a fair living income would be
allow cocoa producers to cover their production costs, meet the daily needs of
their households and invest some of the money in a pension fund.

The world cocoa economy is estimated at
100 billion dollars a year, but Ghana and Ivory Coast, which produced 65%
of the global production base received only about $ 4 billion
annually.

It is on this basis that the two largest
producers of the goods made a declaration in 2018 in Côte d'Ivoire for
bilateral partnership for greater participation in the determination of
cocoa.

This is to ensure that the value of cocoa
the chain has benefited small farmers, alleviated poverty and eliminated unethical practices.
Work practices in the industry.

GNA