Stakeholders in the cocoa sectors in Ghana and Cote d'Ivoire ended their two-day conference in Accra yesterday without a clear-cut mechanism to implement the proposed US$2,600 floor price for cocoa at the international market.
The decision to set a floor price for cocoa was taken at the conference attended by policy makers, traders, processors, manufacturers, among other stakeholders in the cocoa sectors from the two countries.
However, the participants, after long hours of discussions behind closed-doors, could not agree on the modalities for the implementation of the floor price at the terminal market.
The Chief Executive of the Ghana Cocoa Board told reporters at the end of the conference that the processors, manufacturers and traders had requested for a technical meeting to decide on the mechanism for the implementation of the new price.
"It was agreed that a technical meeting be held on July 3 in Abidjan to fine-tune the modalities for the implementation of the floor price," he said and added that the stakeholders had agreed on the new floor price in principle.
Mr Aidoo said Cote d'Ivoire and Ghana suspended sales of the 2020/2021 crop until further notice in preparation for the implementation of the floor price.
"It was also agreed that the issues of sustainability, relating to traceability, environment and child labour, although important be decoupled from the floor price and to be discussed at another forum," he said.
He said a technical working group from Ghana would be established to meet their counterparts in Abidjan to take the important decision which would pave way for the implementation of the new cocoa prices.
Mr Aidoo stressed the need for stakeholders to also discuss the consumption aspect in the cocoa products which might affect the demand for cocoa and, possibly, the prices in future.
He explained that many consumers of chocolate in foreign countries had decided to reduce their consumption of the product due to the sugar involved and added that such a behavioural change could take a toll on the demand and price of cocoa.
The stakeholder engagement follows the Cote d'Ivoire-Ghana cooperation which was instituted at the instance of President Nana Addo Dankwa AKufo-Addo and President Alassane Ouattara in 2017.
The purpose of the cooperation, among other things, is for the Ghana Cocoa Board and the Le Counseil du Café-Cacao to pool resources and synergise efforts in tackling common challenges of production and marketing, as well as taking common position on international issues relating to cocoa.