Ghana and Ivory Coast contribute hugely to global cocoa production but cocoa price volatility has been unfair to the two West African nations. This development has seen both countries come together to work on cocoa pricing.
However, cocoa price stability has been unfavourable to these two countries.
Ivory Coast produced a total of 1.7 million metric tonnes of cocoa and Ghana produced some 840,000 tonnes in 2016 production year.
Ghana is targeting to hit one million metric tonnes for the 2016/2017 production year.
Currently, reports say the average cocoa prices reflect a drop of around 30 percent compared to mid-2016.
During the Cocoa and Coffee Council meeting in Abidjan, the two top cocoa producing countries have therefore agreed to deepen collaboration and coordinate their production strategies in order to tackle price volatility.
Massandje Toure-Litse, director general of the Coffee and Cocoa Council of Ivory Coast reportedly told journalists in Abidjan.
“It’s become imperative that our countries take decisions on points concerning production and sustainability and on points concerning the prickly question of the volatility of prices.”
Joseph Boahen Aidoo, the CEO of Ghana’s COCOBOD, signed on behalf of Ghana with Toure-Litse signing for Ivory Coast.
Africa produces about 75 per cent of the world’s cocoa, but only 20 per cent of the grinding process takes place in Africa.
With Africa's annual $100 billion value of the world’s chocolate industry, only two per cent comes to Africa.
Meanwhile, about 85 percent of the cocoa feeding the multi-billion euro chocolate industry in The Netherlands comes from African countries, with Ghana and Ivory Coast being the largest producers.
In 2015, The Netherlands exported €2.8 billion worth of chocolate, semi-finished and cocoa butter products.