Ivory Coast raises fixed cocoa price by 21pc

YAMOUSSOUKRO (Ivory Coast), Oct 04 (Reuters): Ivory Coast has raised the fixed farmgate price paid to cocoa farmers more than 21 per cent to 1,000 CFA Francs ($1.80) per kg for the main crop of the 2020/2021 season starting Thursday, President Alassane Ouattara said.

The decision by the world's top cocoa producer is in line with a price rise announced by neighbouring Ghana on Sept 24. The two countries account for over 60 per cent of global cocoa bean output.

Addressing thousands of cocoa farmers in the city of Yamoussoukro, Ouattara said the price amounted to state support of 355 billion CFA francs given that the current market price stands at 791 CFA francs per kg.

The increases are largely due to the two governments implementing a price floor of $2,600 per tonne and a Living Income Differential (LID) of $400 per tonne, meant to tackle poverty among farmers.

Farmers at the event welcomed the move. "We can invest even more in the farm and take better care of ourselves and our family," said Augustin Beda, who tends four hectares in the western region of Soubre, at the heart of the cocoa belt.

US Chocolate maker Mars Inc said in a statement that backed by a transparent process that ensures the additional income reaches farmers, and measures that limit further expansion of land use for cocoa farming, the LID will help address the income challenge faced by farmers.