Cocoa is a billion-dollar market, but the vast majority of the five million producers, most of whom live in Africa, cannot make a living on it, a special session of the International Cocoa Organization (ICCO) in Montpellier on Thursday 8 December discussed the creation of an African cocoa exchange as a solution to rebalancing the market.
Far from the growing regions, on the London and New York stock exchanges, cocoa prices are fixed daily or even hourly. Hence, the proposal of the International Cocoa Organization (ICCO) is to bring producers and buyers together. An idea that has been mentioned for a year, but has finally been formalized.
On the other hand, “The ICCO Board has agreed in principle to initiate a study to establish a cocoa exchange in Africa,” said ICCO Executive Director Michel Arion. “This exchange will focus on her four major African producing countries: Ivory Coast, Ghana, Nigeria and Cameroon.”
These producers are pushing for the creation of this exchange, but nothing works without the other side, and the stock market only works if buyers want it. This is therefore part of the consultant’s area of responsibility. It is an absolute obligation to work closely with the private sector, buyers and processors.