In what could be contemplated as the steepest slump in cocoa demand in many decades, a plan by the top African cocoa producers such as Ivory Coast and Ghana to provide more than two million cocoa farmers with at least a living wage had been grievously jeopardized, sources within the aforementioned countries’ regulators had unveiled later last week on condition of anonymity.
In point of fact, latest remarks from the officials of top cocoa producers came forth as the big-league chocolate makers had reached an accord with the African nations last year to guarantee a minimum earning for the cocoa farmers who had been making below $1 per day.
However, the agreement between the African nations and the top chocolate producers, which is scheduled to take effect this October, had been reached on the basis that the international cocoa prices would stay in the average ranges, nonetheless, the ongoing pandemic outbreak’s fiscal fallout had sunken the cocoa futures’ prices to their lowest in nearly two years, while industry analysts said that the cocoa futures’ prices would likely to remain lower for at least end-2021 given the scale of supply glut the industry would be witnessing next year.
Uncertainty looms around aids for the farmers, say CCC
Aside from that, a source who declined to be named within the Ivory Coast’s cocoa regulator, the Coffee and Cocoa Council (CCC), the entity accountable for fixing the official farmers’ price each season, said to a press agency, “It is not certain we will be able to guarantee farmers the amount originally expected,” adding that the country’s cocoa sales for the next season had been 30 per cent lower in the first half of the year compared to the same time a year earlier.
Although a lower cocoa futures’ prices could be a fortune in the making for the chocolate industry, since the chocolate makers would be able to offer better discounts in the high streets, however, for the African cocoa farmers, it could mean a couple of years in hunger.