January 09, 2020 / 05:50 PM / FDC / Header Image Credit: FDC
Ivory Coast and Ghana have joined forces to form a cocoa cartel. The cartel, which bears some similarities with OPEC, is to control output and price.
COPEC as the new cartel is called is seeking to establish a price leadership role for the 2 top producers. They are expecting to slap a premium of $400 per tonne or 15% of the spot price by October this year.
The impact of the activities of the new cartel on Nigeria and other cocoa producers is that an increase in price may lead to slowing demand in the short run but could change consumer behavior in the long run.
The use of genetically modified variants of cocoa and other substitutes could be a threat to export and fiscal revenues in the years ahead.
In the slides below, these issues were discussed by analysts at the FDC Think Tank on Channels TV Business Morning programme.