Managing Director of Olam International, Gerard Manley, says he expects world largest cocoa producer, Ivory Coast’s production during the October-to-March main crop season to fall by at least 10 percent from last year’s record 1.5 million tonnes.
Gerard Manley explained that that Ivory Coast’s overall production of 2 million tonnes in the 2016/17 season was exceptional because of favourable weather and that it should expect production of between 1.85 million tonnes and 2 million tonnes in the coming years.
A supply glut on the world market has driven down prices. The Ivorian government slashed its farmgate price from 1,100 CFA francs/kg ($2.02) to 700 CFA francs/kg during the course of this season. The International Cocoa Organization forecasts a global surplus of 371,000 tonnes this season.
“I think that with this sort of lower price level we’re definitely seeing cutbacks in South America and in Asia, so Africa is still going to provide the bulk of cocoa,” Manley said.
Ivory Coast and Ghana, which together produce more than 60 percent of the world’s cocoa, have held joint meetings aimed at harmonising cocoa production and marketing in an attempt to boost their influence over the New York and London markets.
Manley also said that boosting yields was critical to efforts to combat deforestation in countries such as Ivory Coast, saying that cocoa producers should aim to double yields to at least 700 kg/hectare.