Average DIS price for December was K5, 897/tonne compared to K6, 621/tonne in the previous month (November 2016). This was 12.3% lower or K724 less than the previous month. Prices collected on a daily basis from exporters around the country averaged as follow:
|Month||Average Price||Price per bag(kina/bag)||% change|
Cocoa prices are still declining since September. The cocoa price has fallen 14% over the past two months following an abundant supply of the “Main-Crop” in West Africa caused by favourable weather conditions. Cocoa prices has weakened due to the strong pace of port arrivals in top producer Ivory Coast added to already ample supplies with a global surplus widely forecast for the current 2016/17 season.
Cocoa farmers in the two top growing countries Ivory Coast and Ghana have also been hit by this price drop. The Brexit Effect (weakening of pound sterling) and speculators withdrawing from their investments were also some contributing factors to the current decline in cocoa prices.
Cocoa price dropping internationally is mirrored on the domestic market. Cocoa price for this month has fallen even further down by 12% due to factors on the international market; the global market is oversupplied and other technical factors. Our cocoa farmers have no choice when it comes to pricing but rather receive the prevailing price offered by most exporters. They have been on the receiving hand with low cocoa prices for their cocoa bags.
Submitted for your information only.