Fuad Mohammed Abubakar’s Post

A necessary step towards a better direction?

WHY THE NIGERIAN COCOA FARMERS ARE COMFORTABLE WITH THE CURRENT COCOA PRICING SYSTEM. Nigeria #Cocoa farmers presently are enjoying our best of the moment due to the skyrocketing prices of cocoa beans at the international markets and especially considering the fact that Nigeria is presently running a #deregulated cocoa economy after the abolition of the cocoa board in the year 1986. We are not envying our counterparts cocoa farmers in #Ghana and #Ivory Coast because of the system they operate which does not give them the opportunity to enjoy the present surge in cocoa prices due to the future contract being executed by their respective cocoa boards. In fact, we were reliably informed that the #price the two respective giant #cocoa #origin countries are paying their cocoa farmers were the prices of cocoa as at April, 2023 that was around $ 2,700 per ton. Let’s forget the new increment in cocoa prices in Ivory Coast and Ghana of recent where it was done at 50% increments at both countries just last week and this week respectively without an arrears payments. What Nigeria needs is to firm the control of our cocoa economy in order to increase the productivity of our #smallholder cocoa farmers’ farms holdings via the provisions of subsidized farm inputs, credit facility, capacity building etc thereby improving their #livelihoods. We must start to regulate and promote the Nigerian cocoa economy through the #National Cocoa #management Committee (NCMC) where more investment into the sector will be guaranteed through stable regulatory framework that controls #quality, smuggling, #pesticides regulation, extension management, R&D, #traceability, FMAFS & #state cocoa producing governments synergy, #child labor eradication, #deforestation control and National Cocoa Plan implementation . The NCMC must not get involved in buying and selling of cocoa beans except cocoa beans stabilization support funding in future when necessary especially when cocoa price nosedived downward beyond cocoa farmers economic capacity as being done in other developed countries on other commodities. The #EUDR policy has called for a greater participation of stakeholders collaboration in order to achieve a national traceability system that guarantees a seamless transparency in our cocoa economy business with sustainability. Nigeria has better opportunities to surpass Ivory Coast and Ghana considering the downward sliding of their cocoa production due to pest and disease, climate change, smuggling, miners activities, land degradation, unfavorable cocoa economy governance (government involvement in buying and selling of cocoa beans), poor remuneration of their smallholder cocoa farmers etc. The #Nigeria youth population in cocoa industry and the favorable cocoa governance as far as the recent cocoa prices benefit to the Nigerian cocoa farmers are concerned, the future of the Nigerian cocoa sector is guaranteed under NCMC that is privately driven and publicly enabled.

The World Cocoa Conference came to a close today. As Antonie Fountain put it greatly: HOPE has two daughters. Their names are ANGER and COURAGE. I am angry because so much injustice is done to cocoa farmers. They only receive fair prices when their production has collapsed. Now that there are almost no forests left in Ghana and Côte d'Ivoire, it looks like cocoa is moving towards places where there are still forests, like Liberia, Cameroon, Ecuador, Peru. This will then likely lead to another boom of cocoa production and the consequent collapse of prices. Once more, companies will have gotten lots of profit and producing countries will be left without forests and with poor people. I am also hopeful, when I read the Brussels Declaration: - "Companies should be transparent about the prices they pay to farmers" - "The price paid to farmers should allow them to make a decent living, produce zero-deforestation cocoa and address child labour and exploitation." If these words are translated into action, this is no less than system change. It's also pretty much what we are asking for in our call to action to companies https://lnkd.in/e8M3Xm6X THE TIME FOR ACTION IS NOW. We will not stop reminding companies of their duty to pay fair prices, that allow at least for a living income. We will also not stop reminding politicians to make paying living income prices a legal requirement. I hope all stakeholders will do what's right and make an end to the absurd vicious cycle of destruction and exploitation. It just takes some courage.

The price of cocoa has surged over the past six months, thanks largely to the collapse of production in west Africa, where most of it is grown. The value of exports from Latin America has shot up. Ecuador earned 32% more selling cocoa to overseas buyers in 2023 than it did in 2022. Exports then tripled in value from the beginning of the year, compared with the same period in 2023. Cocoa has become one of the region’s most valuable exports. https://lnkd.in/eiuRhuQH

Choc-tastic news alert! 🥳🚨 Côte d’Ivoire has just announced that its cocoa farmers will finally benefit from sky-high market prices, receiving 50% more for cocoa for the rest of the season. While this is amazing news for farmers, the situation isn’t as sweet as it might seem. Here’s the low-down.. At the start of every cocoa season, the Ivorian government sets a minimum cocoa price, offering farmers stability while market prices go up and down. Halfway through the season, this national farmgate price is reassessed for the remaining months. And yesterday, it jumped to about €2,287 per metric ton, matching the Living Income Reference Price (LIRP). So why are cocoa prices up? ’Cause supply is shockingly low, mainly due to climate change. 📉 And so even though cocoa farmers are getting more, they’re selling less. Which means it’s still impossible for millions of them to earn a living income. We’ve said it before and we’ll say it again: the solution to exploitation in cocoa lies in combining all 5 of our Tony’s 5 Sourcing Principles – no cherry picking. 🚫 Yes, it’s great that big chocolate companies are now having to pay a higher price. But we also need them to commit to the LIRP long-term and to invest in productivity + climate resilience. ’Cause as we steer towards a world where cocoa farming is increasingly impacted by climate change, we need to take our responsibility. All of us, together. 🤝 Find out more: https://bit.ly/3xpNAek #cocoaprices #farmgate #cocoa #lirp #chocolate

The Farm gate price of Cote D'Ivoire set at 𝟭 𝟱𝟬𝟬 𝗙𝗿𝗮𝗻𝗰𝘀 𝗖𝗙𝗔/Kg for the intermediate 2023-2024 cocoa marketing campaign. Abidjan, April 2, 2024 – For the 2023-2024 intermediate marketing campaign, the State of Côte d'Ivoire has set the guaranteed farm gate price of cocoa at 1,500 FCFA per kilogram. The information was made public by the Minister of State, Minister of Agriculture, Rural Development and Food Production, Kobenan Kouassi Adjoumani, during a press conference on Monday April 2, 2024 in Abidjan. “We inform you that for the intermediate campaign, the result of sales in anticipation of the harvest for the period from April to September 2024 made it possible to achieve an average CIF price of 2,326 FCFA per kilogram. On this basis, the State of Côte d’Ivoire decided to set the producer price at 1,500 FCFA per kilogram, or 64% of the CIF production price,” declared Kobenan Kouassi Adjoumani. For the Minister of State, this is a price level never before achieved in the history of the cocoa sector in Côte d'Ivoire. This is also the first time that the price of the intermediate campaign is higher than that of the main campaign. “If the dynamic of the rise in world prices continues like this, we will still have very good news to announce to you for the next campaign,” assured Kobenan Kouassi Adjoumani, not without saluting all the foresight shown by the Head of State, Alassane Ouattara has demonstrated for the coffee-cocoa sector. The Minister of Agriculture noted that since 2011, Côte d'Ivoire has opted for granting at least 60% of the CIF price of these products to producers, by operating a stabilized system, based on the sale by anticipation of a good part of the harvest, on the futures markets. And according to him, this system has worked very well since 2012, and has provided remunerative income to Ivorian coffee and cocoa producers, in an international context characterized by low prices. He recalled that the guaranteed minimum price of cocoa, for the main 2023-2024 campaign, was set at 1,000 FCFA per kg. Note that the coffee-cocoa sector is the spearhead of the Ivorian economy for its contribution to more than 40% of export revenues and more than 15% of GDP. Thanks: https://lnkd.in/eVS5Rzfx

#todayinsight: Cocoa Crisis: Surging Prices, Farmer Struggles, and Industry Inequities Cocoa prices are surging again. This is the third surge in the past 12 months. The Cocoa plant needs very specific weather close to the equator. This means only a few countries supply it to the market. Ivory Coast and Ghana are the two major suppliers of the black seed and in the past two years harsh weather conditions and off-season rains and drought have hampered the production. The production is still conducted in the old fashioned way. Farmers are poor and cannot afford new trees with the old ones let alone mechanizing the production. And investment is not economically lucrative, that is because the market is controlled by the government who is the sole buyer of the seeds. Local Cocoa market in both Ivory Coast and Ghana is highly regulated by the government. Governments set the prices and purchase the beans in advance through a forward contract. For 2023-24 harvest Ivorian farmers would receive 1000 African Franc per kilogram, that is around $1.63. In other words, the price is  $ 1,603 per tonne, around 25 percent of current global prices. While farmers in other countries namely Brazil and Indonesia are enjoying the current prices and turning part of income to investment and more productive farms. This season however, many international chocolate makers pour a high amount of money into these countries to secure prices. Many are doing so through government agencies, however the farmers are receiving a price and receive more upfront cash for their harvest.  #globaltrade #globalindustry https://lnkd.in/dKGJ23UR

The Cocoa Paradox (Why we need to understand Product Development) As we celebrate the rich flavors and aromas of chocolate, let's take a closer look at the economics behind cocoa production. Africa's Contribution: 70% of the world's cocoa is produced by African farmers, with the top producers being Côte d'Ivoire, Ghana, Nigeria, and Cameroon. Despite this, African cocoa farmers earn a mere 3-6% of the global chocolate market's value of over $160 billion revenue. Europe's Profit: Belgium, the Netherlands, and other EU countries are among the largest processors of cocoa, reaping significant profits from grinding, pressing, and conching. These processors earn around 40-50% of the global chocolate market's revenue, with some estimates as high as 60%. Why?: They understand the Value chain and the place of Value Addition or Processing of Local raw materials The Disparity: While African farmers struggle to make ends meet, earning around $1-2 per kilogram of cocoa, European processors generate significant profits, with some companies reporting margins of up to 20%. The Call to Action: 📌 Let's work together to address this imbalance. We need to: Support fair trade practices and advocate for better prices for African cocoa farmers. 📌Policy Reforms: The Global Cocoa Price is fixed in England but how can I be the producer and another man set the price for which I will sell the produce? 📌 Invest in local processing and manufacturing capacity in Africa. Promote sustainable and equitable supply chains. The first Infrastructure, we need in Africa is POWER 💡 📌 Investment in Research and Product development Together, we can create a more just and prosperous cocoa industry for all. #AlfredUkane #agriculture #agribusiness #foodsecurity #CocoaIndustry #FairTrade #Sustainability #Africa #Europe #Chocolate #SupplyChain #Equity

🗞 Breaking News❗ Ghana's cocoa output has nearly halved, due to climate change, adverse weather, and disease, which could seriously impact the chocolate industry. Prices are already at an all time high and show no signs of dropping. At Win-Win, we're addressing these challenges by offering innovative cocoa-free chocolate alternatives. Now is the time to explore sustainable and delicious alternatives that don't rely on traditional cocoa supplies. Read more about the situation: Cocoa crisis: Ghana’s output almost halves

Introducing #CommodityThursdaywithMitsunGroup! We’re kicking off with a deep dive into the world of cocoa—an indispensable commodity shaping industries far beyond chocolate. 🍫 Let's explore together! Cocoa – The Heart of the Chocolate Industry Cocoa is not just the key ingredient in our favorite chocolate treats; it's a vital commodity in the global market. As the backbone of the chocolate industry, cocoa is essential to economies, particularly in West Africa, where countries like Ivory Coast and Ghana are the leading producers. These nations supply the majority of the world's cocoa, making them central players in this industry. At the beginning of the year, cocoa prices were around $4,463 per metric tonne. Since then, they have experienced significant volatility, reaching a high of $12,538 year-to-date. As of the latest data, the current price stands at $8,324 per metric tonne (Market Insider). This instability is driven by unpredictable weather patterns and political challenges in key growing regions, affecting everything from farmers' livelihoods to global supply chains. Cocoa remains a closely monitored commodity for both producers and investors. Beyond its role in food production, cocoa also finds applications in other industries, including cosmetics and pharmaceuticals. However, the cocoa industry is not without its challenges. Issues such as child labor and environmental impact have cast a shadow over its production. Fortunately, there are ongoing efforts to promote fair trade practices and sustainable farming methods, aiming to create a more ethical and environmentally friendly industry. Question for You: How do you think the challenges faced by cocoa farmers in West Africa could be addressed effectively? Let’s discuss in the comments! #Cocoa #CommodityThursday #MitsunGroup #FairTrade #Chocolate #GlobalEconomy #Sustainability #WestAfrica #CocoaPrices