Ghana and Ivory Coast may put ceiling on cocoa production
The two countries, who together produce two-thirds of the world's cocoa, imposed a fixed ‘living income differential’ or premium of $40
Lisbon — Ghana and Ivory Coast, the world's top cocoa producers, are looking at introducing a cocoa production ceiling to support global prices and discourage overproduction, the countries' industry regulators said on Wednesday.
The move comes after the two countries, who together produce two-thirds of the world's cocoa, imposed a fixed "living income differential (LID)" or premium of $400 a tonne in July on all cocoa sales for the 2020/2021 season.
Many cocoa buyers say the LID, which represents a major overhaul of how cocoa is priced globally, could lead to excess production.
"We've put in [place a] mechanism that sets production ceilings," CEO of the Ghana Cocoa Board Joseph Boahen Aidoo told industry representatives at the European Cocoa Forum, in Lisbon.
He declined to say at what level the production ceiling would be set, saying that parliament had to approve it first.