Ivory Coast Suspends Plans to Boost Cocoa Yields on Price Drop
According to a letter obtained by Bloomberg:
Ivory Coast’s cocoa regulator plans to suspend programs that are assisting farmers to improve their yields after last season’s record crop caused prices to plunge.
Le Conseil du Cafe-Cacao, the industry governing body in the world’s biggest cocoa producer, will stop the distribution of higher-yielding planting materials such as seeds and seedlings from the start of the next season in October, according to the letter which was dated April 18 and signed by CCC Managing Director Yves Kone.
Programs initiated by private companies to increase farmers’ productivity will also be stopped, Kone said in the letter that was sent to Gepex, a group representing exporters.
Why is this important?
Private and public programs for improving farmer livelihoods that focus on increasing yields are extremely vulnerable to market conditions. At this point, increasing production is likely to drive down prices tied to the exchanges even further.