West African cocoa farmers face price disappointment

Significance

However, with COVID-19-related disruptions weakening chocolate demand, and expectations for another tumble in cocoa’s world market price, the Ivorian Coffee and Cocoa Board (CCC) and the Ghana Cocoa Board (Cocobod) face budgetary challenges in providing a promised guaranteed minimum income.

Impacts

• Though both regulators face pre-season financing challenges, they expect to secure financing for 2020/21 harvest cocoa purchases.
• Chocolate manufacturers in consumer countries will maintain pressure on the CCC and Cocobod to pay out the LID as promised to farmers.
• Demand for chocolate is expected to recover in the medium term, giving some reassurance for an eventual modest cocoa price recovery.