INTRODUCTION Members of the Cocoa Producers' Alliance have decided to ask more for their commodity.?
INTRODUCTION Members of the Cocoa Producers' Alliance have decided to ask more for their commodity. At a meeting in Abidjan, the capital of the Ivory Coast, on Friday (25 February) representatives of eight countries found the terms of the present international agreement on cocoa prices unsatisfactory.
SYNOPSIS: The eight countries accounting for over 80 per cent of the world exports of cocoa are Brazil, Cameroun, Ivory Coast, Ecuador, Ghana, Nigeria, Gabon and Togo. The Ivory Coast's development has been based mainly on exports of coffee and cocoa. Under the present International Cocoa Agreement signed between the producers and consumer countries in October last year the price of cocoa paid to the growers should not exceed 0.35 pence sterling ( 55 US cents) per pound.
But most of the producers' countries are committed to developing cocoa and have undertaken loans for investment. This is why it was agreed in Abidjan that these investments should be assured of profitability by viable guaranteed price. A new round of talks within the International Cocoa Agreement group will open next month in London to decide on the new prices.
Mr. Abdoulaye Sawadogo, the Ivory Coast Agriculture Minister, was quoted by Reuters news agency as saying that the West African main cocoa crop has been retarded by cool weather. He saw the cocoa shortage, which has already caused steady rise in the commodity prices on both the London and New York markets, lasting for at least two years.