Ghana and its West African neighbor, Cote d’Ivoire, have instituted a $400 per tonne Living Income Differential to guarantee the floor price of cocoa beans produced in both countries.
The new pricing mechanism announced in a joint communiqué by both nations, is expected to help provide a remuneration price for cocoa farmers.
According to the communiqué, “the mechanism which was introduced to industry players was understood.”
It said “this system takes into consideration a fixed living income differential which would provide farmers a decent income.”
Ghana and Cote d’Ivoire have earlier proposed $ 2,600 as floor price for their cocoa beans.
The proposal which came with the suspension of cocoa beans supply to the world market by both nations, formed part of efforts by the two countries, which supply about 60 per cent of global cocoa beans, to get stakeholders in the value chain to give their farmers a fair price that reflects their contribution to the sustenance of the cocoa industry.
(BY Melvin Tarlue)