There is a strong possibility of higher world prices for cocoa, following the decision by cocoa exporting nations to renegotiate their international marketing agreement.
There is a strong possibility of higher world prices for cocoa, following the decision by cocoa exporting nations to renegotiate their international marketing agreement. The decision to scrap the present cocoa agreement was made by the Alliance of Cocoa Producing Countries on Thursday (1 June) meeting in the Ivory Coast.
SYNOPSIS: The delegates from the cocoa-producing nations met in the congress hall at Yamoussoukro. They decided that the present cocoa marketing agreement, signed in October 1975, was no longer satisfactory. The agreement, designed to stabilise world trade in the product, specifies that cocoa should not be sold for less than 65 cents American a pound, and for no more than 81 cents. Delegates said this price had become too low. The agreement was due to end next year but there was a provision for extension or renegotiation.
Seven African nations, plus Brazil, are parties of the international cocoa agreement. Between them, they control virtually the entire world production. Most cocoa is produced on small farms, three to five acres (one or two hectares) in size. In a few isolated places, cultivation is sophisticated and highly-mechanised, but most of the world's crop is grown on small peasant holdings. In the Ivory Coast, where this film was shot, and in most other cocoa-producing nations, the crop provides a major source of export earnings.
National development has been dependent to a considerable extent on cocoa and economic prosperity is largely dependent on the orderly world marketing of the crop. The International Cocoa Agreement provides an assured market with provision against sharp rises and falls in prices.