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Find all the economic and financial information on our Orishas Direct application to download on Play StoreOn Friday, the Ivorian Minister of Agriculture and Rural Development, Kobenan Kouassi Adjoumani,
provided details on the use of the FCFA 300 billion (€ 456.8 million) announced on March 31 by
Prime Ivorian Amadou Gon Coulibaly in support of agriculture (read our information: Covid-19: la
West Africa's economic response with agricultural measures in Côte d'Ivoire and Togo).
"The Ivorian authorities are planning support for the main sectors of the national economy, in particular
cashew, cotton , rubber, oil palm and cocoa , coffee , for an amount of 250 billion
FCFA," he said. "Support has also been announced for food, market gardening and fruit production,
for an amount of 50 billion FCFA, including 20 billion for inputs."
Friday, April 10, the Minister of Agriculture clarified the terms. He recalled that support will go both to
food crops (FCFA 50 billion) than cash crops (FCFA 250 billion).
"Support to the food sector includes urgent measures and post-COVID-19 measures to be carried out between
April and June 2020. The urgent measures are the acquisition of agricultural kits and their distribution to
groups of producers, the identification of favorable production sites and the supervision of all
producers", specified the Minister. As for the post-Covid-19 measures, they provide for the development of
production sites not taken into account by the urgent measures, the construction of infrastructure for
storage and constitution of a national food reserve and popularization of plowing and harvesting
mechanized.
The cash crops targeted are the cashew, cocoa , coffee , cotton , rubber and oil palm sectors.
impacted by the freezing of exports which will benefit from the support of FCFA 250 billion. Kobenan Kouassi
Adjoumani added that "Accompanying measures are also planned to maintain the competitiveness
of this sector" but without further details, according to the official press release.
But during the daily press briefing of the Ministry of Security and Civil Protection, the Minister of
Agriculture gave details on the different sectors, reports the AIP.
The State is mobilizing for cashew nuts
With regard to cashew, following the impact of the pandemic on the world economy, international prices
are currently between $900 and 1,100 per ton (t), i.e. below the reference price of $1,300 on
which the Ivorian authorities used to calculate the minimum farm gate price of FCFA 400 per kilo
paid to the planter. "Currently, the purchase price would be negotiated between FCFA 100 and 200 in areas of
production and marketing is even stopped in places", reports our colleague.
Faced with this, and before the start of the rainy season this month, the Minister announced that the Council of the
cotton and cashew and the Economic Interest Grouping (GEPPA) will buy 200,000 t from
producers at the guaranteed minimum price of FCFA 400 per kilo set at the start of the campaign on February 6
last. In addition, a subsidy mechanism for exporters will be put in place "in order to encourage all
exporters to resume purchases despite the economic situation". "It should be noted that the success of these measures is
conditioned by their rapid implementation and the strict surveillance of land borders", it would have been
precise.
The fear of contract cancellations
As for seed cotton production , it could reach a new record of 510,000 t. "At the stadium
currently, a volume of more than 450,000 t is recorded in the cotton factories ", specifies the AIP. "Although approximately
60% of fiber production is already sold in advance, the difficulty lies in the postponement of
delivery requested by international customers due to the effects of COVID-19. The risks carry
now on the possibility of cancellation of contracts by customers if the situation does not improve", according to
our colleague. Remember that you have to go back to June 26, 2009 to find the same price as today on
the New York futures market, at 52.54 cents per pound (lb), according to Reuters.
1In the rubber sector, whose production was 689,000 t in 2010, entirely exported to Europe
(52%), Asia (30%) and America (11%), we also fear the postponement of contracts or boarding, which
will impact "the cash flow of companies and the income of producers".
Cocoa and coffee look after June
For now, the cocoa and coffee sectors are doing quite well. There is no break in their
marketing. The guaranteed farm gate purchase price of FCFA 825 per kilo is maintained, which
represents, according to the Minister, an additional effort of FCFA 200 per kilo to support producers.
No further details. But what worries the sector is after June. In this respect, she would like a
provision is made by the government and that the sector will complete with its own resources, notes the AIP.
The palm sector already in bad shape
In oil palm, the concern appears more clearly with, already in April, a fall in the price
planter at FCFA 44.32 per kilo against FCFA 54.20 in March, this being combined with a drop in
yields. The indebtedness of growers and the sector is, here again, a real concern.
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