"Cocoa production at a tipping point"

" Cocoa production at a tipping point \r\nWith over half a century of volatility and a steady price decline, the cocoa industry has grappled with significant economic, environmental and social challenges.\r\n\r\nThe once prosperous cocoa economy has become a hardship for countless small-scale producers who cannot secure a decent income.\r\n\r\nRecognising the dire need for change, C\u00f4te d\u2019Ivoire and Ghana, powerhouses accounting for nearly 70% of the world\u2019s cocoa production, have taken a bold step forward, establishing the\u00a0C\u00f4te d\u2019Ivoire-Ghana Cocoa Initiative\u00a0(CIGCI) in 2018.\r\n\r\nThe CIGCI initiative aims to secure remunerative prices for cocoa farmers, thereby enhancing their livelihoods and advocating for the common interests of member countries on the global stage.\r\n\r\nSpeaking on\u00a0 Sunday Night on Asaase 99.5 , Alex Arnaud Assanvo, the executive secretary of CIGCI, sheds light on the cocoa industry\u2019s plight, revealing a landscape riddled with challenges yet ripe with opportunities for transformation.\r\n History of cocoa production in West Africa \r\nWhile cocoa originated in South America, cocoa production in West Africa started in the 1800s. The first large-scale production was in the 1880s from Portuguese plantations on the islands of S\u00e3o Tom\u00e9 and Principe.\r\n\r\nThe venture into \u2018black gold\u2019 or cocoa production in Ghana was introduced in 1876 by Tetteh Quarshie, who gradually expanded crop cultivation. It spread from Mampong-Akwapim to other areas in the country.\r\n\r\n<img class=\"alignnone wp-image-197555 size-medium\" src=\"https:\/\/i0.wp.com\/www.asaaseradio.com\/wp-content\/uploads\/2024\/03\/The-Late-Tetteh-Quarshie-pioneer-of-Cocoa.jpg?resize=488%2C650&ssl=1\" sizes=\"(max-width: 488px) 100vw, 488px\" srcset=\"https:\/\/i0.wp.com\/www.asaaseradio.com\/wp-content\/uploads\/2024\/03\/The-Late-Tetteh-Quarshie-pioneer-of-Cocoa-scaled.jpg?resize=488%2C650&ssl=1 488w, https:\/\/i0.wp.com\/www.asaaseradio.com\/wp-content\/uploads\/2024\/03\/The-Late-Tetteh-Quarshie-pioneer-of-Cocoa-scaled.jpg?resize=768%2C1024&ssl=1 768w, https:\/\/i0.wp.com\/www.asaaseradio.com\/wp-content\/uploads\/2024\/03\/The-Late-Tetteh-Quarshie-pioneer-of-Cocoa-scaled.jpg?resize=1152%2C1536&ssl=1 1152w, https:\/\/i0.wp.com\/www.asaaseradio.com\/wp-content\/uploads\/2024\/03\/The-Late-Tetteh-Quarshie-pioneer-of-Cocoa-scaled.jpg?resize=1536%2C2048&ssl=1 1536w, https:\/\/i0.wp.com\/www.asaaseradio.com\/wp-content\/uploads\/2024\/03\/The-Late-Tetteh-Quarshie-pioneer-of-Cocoa-scaled.jpg?w=1920&ssl=1 1920w, https:\/\/i0.wp.com\/www.asaaseradio.com\/wp-content\/uploads\/2024\/03\/The-Late-Tetteh-Quarshie-pioneer-of-Cocoa-scaled.jpg?w=1416&ssl=1 1416w\" alt=\"\" width=\"488\" height=\"650\" \/>\r\n\r\nC\u00f4te d\u2019Ivoire started cocoa cultivation around the 1890s. It is now the world\u2019s largest producer of cocoa. Formal cocoa production started in the 1970s and eventually spread across the country. Nevertheless, the expansion has left heavy deforestation, with over 80% of the country\u2019s forests disappearing.\r\n Challenges and Solutions of Cocoa Production: the CIGCI perspective \r\n Price Volatility and Market Dynamics \r\nA recurrent theme is the struggle of cocoa farmers with price volatility and the inability to earn a decent income.\u00a0The European Union, being the primary importer of cocoa, has given the producing countries, mainly Ghana and\u00a0C\u00f4te d\u2019Ivoire, limited influence in price setting.\r\n\r\nAssanvo noted that the implementation of the Living Income Differential (LID) \u201cis a\r\nnewly priced mechanism\u2026 to secure the farm gate price that will go to the farmer.\u201d\r\n\r\nHe emphasized that while the CIGCI is not creating trade rules with the LID, they want to focus on \u201cwhere we have power.\u201d\r\n Environmental Sustainability \r\nDeforestation is a critical issue for the producing countries Ghana and C\u00f4te d\u2019Ivoire.\u00a0The EU Deforestation Regulation\u00a0(EUDR), set to come into force on 30 December 2024, will ensure that products such as cocoa they place on the market do not cause deforestation.\r\n\r\nTo mitigate deforestation, the CIGCI is developing a national traceability system in compliance with the EU legislation.\u00a0 This system will not only identify the origin of the buyer and the cocoa but also provide much-needed support to small-scale farmers.\r\n Social Issues \r\nDespite being a top cocoa producer, C\u00f4te d\u2019Ivoire struggles with child and slave labour among cocoa farmers. An estimated 30% of children working on cocoa farms do not attend school.\r\n\r\nOver the past three years, Assanvo notes that there has been an increase in smuggling between borders with Ghana and C\u00f4te d\u2019Ivoire.\r\n\r\nHe urged leaders in the respective ECOWAS countries to take action to mitigate the issue.\r\n The Road Ahead \r\nAssanvo noted that Cameroon and Nigeria, who have expressed formal interest, will soon join the initiative.\r\n\r\nHe, however, stresses that there will need to be several internal processes for the membership to be translated in real time. He also mentions some countries, without specifying which ones, that have expressed informal interest.\r\n\r\nAlex Arnaud Assanvo remains optimistic, viewing the current landscape as a critical opportunity for cocoa to emerge as a leading force for positive change in global agriculture."

"Cocoa production at a tipping point"

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