Willy Wonka Strategy: World’s Top Cocoa Producers Strategize to Influence World Prices | Frontera

According to the International Cocoa Organization (ICCO), the industry has a global surplus of 371,000 tons of the agricultural commodity (DBA) this season. Ivory Coast alone is on track to produce a record 2 million tons of cocoa this year. According to Dr. Owusu Afriyie Akoto, Minister of Food and Agriculture, the decline in the price of the cash crop was costing the two countries nearly $2 billion per year.

World’s top two cocoa producers have a plan

Ivory Coast and Ghana have together been developing a strategy to gain greater influence over world cocoa prices. Essentially, the world’s top two cocoa producers want to create a buffer stock of cocoa beans in specialized warehouses. This would help exert supply pressure in the market for cocoa beans to restore prices. Chocolate factories may therefore witness a rise in raw material (cocoa beans) costs if the plan goes through.

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Willy Wonka Strategy: World’s Top Cocoa Producers Strategize to Influence World Prices | Frontera.