Core prices: Cameroon and Ghana set the tone for the market

2024-09-12 23:00:35

Counting has begun in Ivory Coast, where the guaranteed minimum price per kilo of beans paid to cocoa farmers must be announced by the end of September. The price which should be close to that which has just been set in Ghana, and which will be supported by the prices observed in Cameroon, where the cocoa campaign was already launched a month ago.

Them CameroonThe largest producer of cocoa in Africa, opened its campaign first, with a kilo of beans paid in average for three weeks at 4,500 CFA francs, a little less than before the summer, but still at the highest level.

We are talking about prices which are independent and prices at the beginning of a season which starts shyly, with few levels offered for sale. But the stability of their relationship sets the tone for the start of this season and will not fail to raise hopes among the Ivorian developers.

Because of the pricing procedures involved Ivory Coast, they do not reflect international prices immediately and therefore do not correspond with Cameroonian prices. But it is at the market price that the Ivorian operators sell a large part of the cocoa this season in advance. Beans purchased from October onwards from growers, to respect these agreements that have already been signed, so it should at least show an increase in international prices. The explosion of prices on the New York and London stock exchanges this year has also justified the price of the Ivorian farm entrance price between the large and small Ivorian harvests of the 2023-2024 season, of 1,000 CFA francs on warned at 1,500 CFA francs.

Ghana-Ivory Coast, joint costs?

Since 2021 and the establishment of the Initiative Ghanaian cocoa-Ivory Coast, what also guides the Ivorian prices is the consultation which takes place, in theory, between the regulators of the two neighboring countries, for better stability.

The set of Ghanaian prices this week, a little ahead of the Ivory Coast, like last year, is therefore an important indicator: the increase announced is 45% compared to the prices paid in the spring, during the low harvest that is running from April to July : 48 cedis per kilo of beans, or 1,800 CFA francs (around 3 dollars).

Ivorian cocoa farmers, who ended their campaign with a kilo paid for 1,500 CFA francs, should rationalize their beans pay more this year. At least it is close to the level of Ghana.

Failing this, the authorities are at risk of witnessing the escape of cocoa bags across borders. And above all to sadden the Ivorian farmers who, like those in Ghana, suffered last year by the loss of up to a quarter of their production.