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Cocoa Giants Unite to Stabilize Chocolate Prices
19 Jun
Summary
- Ghana and Côte d'Ivoire will harmonize purchasing prices.
- Cocoa pact aims to shield farmers from global market volatility.
- Both nations combined produce 60% of the world's cocoa.
Ghana and Côte d'Ivoire, leading global cocoa producers, have committed to stabilizing the chocolate market through a revived partnership. This agreement, reached at a summit in Abidjan this week, will see the nations harmonize purchasing prices and harvesting calendars.
The revived 'cocoa OPEC,' initially established in 2018, aims to protect farmers from the sharp fluctuations in global cocoa prices. This measure is crucial as farmers in these countries rarely benefit from price surges, impacting their ability to reinvest in crops.
This collaboration is economically significant for both nations. Cocoa represents 40% of Côte d'Ivoire's export earnings and 20% of its GDP, while in Ghana, it contributes up to 30% of export earnings and 8% of GDP. The leaders aim to boost farmer incomes and mitigate market shocks.
