Fairtrade is pleased that the governments of Côte d'Ivoire and Ghana have implemented a floor price for cocoa of US$2,600 per metric ton.  This move allows the sharing of benefit of trade more equally, which can increase cocoa farmers’ incomes.  Fairtrade International will be actively engaging with cocoa regulatory bodies in each country to understand how the Fairtrade structure, including the minimum price, will fit in with their plans.

A Fairtrade study in April 2018 reveals that 58 percent of Fairtrade certified cocoa farming families in Côte d'Ivoire are in extreme poverty, reflecting the challenges in West African cocoa sector.

Following an extensive global consultation process, Fairtrade International announced that as of 1st October 2019, the Fairtrade Minimum Price for conventional cocoa would increase by 20 percent to US$2400 per metric ton, with an additional increase for organic cocoa. The Fairtrade Premium for cocoa farmers and their cooperatives will also increase by 20 percent to US$240 per metric ton.  The increase can raise the income of the cocoa farmers, which could lift them out of extreme poverty.

When the market prices are low, the Fairtrade Minimum Price serves as a safety net for farmers.  On the other hand, the Price allows farmer cooperatives to earn more when the price is high.   Fairtrade will discuss with the two governments to determine how the Fairtrade Minimum Price will affect the floor price structure when details of the floor price and its implementation are confirmed.  Regardless of the selling value, Fairtrade cocoa farmers will continue to enjoy the benefits of Fairtrade Premium. 

Source >> Fairtrade welcomes new cocoa floor price in Côte d'Ivoire and Ghana as a benefit for farmers