The Member of Parliament for Manso Adubea Yaw Frimpong has stated that the decision by stakeholders in the cocoa industry to peg the tonne of cocoa at $2,600 was long overdue.
Stakeholders including cocoa buyers, traders and processors of cocoa beans have agreed in principle to buy the commodity from Ghana and Cote d’Ivoire at $2,600.
The consensus was reached at a conference with cocoa stakeholders in Accra on Wednesday.
Reacting to it, the legislator said the move was great and would serve both countries well.
In a communique read to the media at the end of the two-day stakeholder engagement on cocoa farmer income in Accra, the Chief Executive Officer (CEO) of Ghana Cocoa Board (COCOBOD), Mr Joseph Boahen Aidoo, said $2,600 per tonne was the maiden floor price (the price below which no sale would be made) that was proposed by the two top cocoa growers and accepted by the stakeholders, made up of buyers, traders, processors and manufacturers.
The stakeholders are however expected to meet a technical to fine-tune the modalities for the implementation of the floor price, a request the two sides agreed to.
The MP said the agreement was made possible following agreement the two countries signed some months ago on ways to address challenges of the cocoa sector.
Ghana and Cote d’Iviore few months ago signed an agreement, which was within the framework of the implementation of the Strategic Partnership Agreement that links the two countries.
The agreement was signed by both President Nana Addo Dankwa Akufo-Addo and the Ivorian leader Alassane Ouattara after extensive consultations on the Cocoa economy in Abidjan.
President Akufo-Addo and President Alassane Ouattara reaffirmed their commitment to define a better, common strategy and a sustainable solution for the improvement of prices for cocoa producers, in their respective countries.
They also committed themselves to harmonising their cocoa marketing policies, and agreed to announce, every year, in a concomitant manner, and before the beginning of the campaign, the price to cocoa producers.
Additionally, Ghana and Cote d’Ivoire have agreed to intensify collaboration, in the field of scientific research for the production of cocoa plants, the improvement of plant varieties, and also to adopt and implement a regional programme to fight against the swollen shoot disease.
A commitment by the two countries to process a major part of cocoa, and the invitation of the private sector, notably the African private sector, to invest massively in cocoa processing in Africa, was also reached.
Ghana and Cote d’Ivoire produce 60 percent of the world’s cocoa output. But fluctuations of cocoa prices on the international market, marked by a fall of around 20 percent in 2017, have impacted negatively on the revenues of millions of cocoa farmers, as well as on the budgetary revenues of the two countries.
Mr. Frimpong Addo said the agreement paved way for the success chalked in at gegging the price at $2,600.
He said t5he move will ensure efficiency in the domestic supply chain of cocoa production, alleviate poverty and ensure good living standards among smallholder cocoa farmers.
The global cocoa economy is estimated at US$100 billion annually but Ghana and Cote d’Ivoire that produced 65 per cent of the world’s production base received only about four billion dollars annually.
It was based on this that the countries agreed to work together to ensure they get better offers for their produce.