The decision was contained in a joint communique issued and signed by Mr. Joseph Boahen Aidoo, the Chief Executive of the Ghana Cocoa Board, and the Chief of Cote d’Ivoire’s Coffee and Cocoa Council, Yves Kone-Brahima.
The two countries, at a two-day meeting in Accra in July, announced the suspension to push their demand for a floor price of $2,600, which was accepted by stakeholders.
Ghana and Cote D’Ivoire, between them, produce more than 60 per cent of the world’s cocoa output and have agreed to “a constant $400 farmers’-living differential” on each tonne of cocoa from the two countries.
The communique said “in view of the above the two countries decided to lift the suspension of sales of the 2020/2021 crop from today July 16,” the communique said.
It said they were going to legislate the minimum producer price to be paid to cocoa farmers as a means to safeguard their income.
The two countries would be paying farmers a guaranteed minimum price of 70 per cent of the floor price of $2,600 per tonne.
Farmers would also be entitled to bonus payment when the achieved average gross Free On Board (FOB) price at the end of the Cocoa season is between the minimum of $2,600 ($2,700 Cost Insurance Freight (CIF) – $2,900 ($3,000 CIF).
The countries agreed on creating a stabilization account under the cocoa initiative of both countries and provided for in the Charter.
In line with this, two accounts would be set up for each country within the secretariat in Accra where any extra value above $3,000 CIF or $2,900 Gross FOB of the Achieved Weight Average will be deposited.