Cocoa and coffee pricing policies in Cote d'Ivoire
No 64, Policy Research Working Paper Series from The World Bank
Coffee and cocoa are Cote d'Ivoire's two most important commodity exports, accounting for about 50 percent of total exports. Falling world prices and an appreciating currency have cut into sales of Ivorian coffee and cocoa at the same time that international supplies have mounted. As several major producers backed up their export efforts with aggressive exchange rate policies, Cote d'Ivoire's exporters lost their competitive position. To offset the slump in revenues, the government needs to reverse this decline in competitiveness. A study under different pricing and subsidy policies confirms that coffee production should be increased, even at the cost of some reduction in the output of cocoa. This will avoid large government subsidies to cocoa growers and will increase future exports of both products. Under current market conditions, government-established producer prices are no match for rapidly changing world markets and exchange rates. Unless Cote d'Ivoire adopts a flexible pricing policy, the country may face continuing problems in international competitiveness.
Keywords: Crops&Crop Management Systems; Environmental Economics&Policies; Economic Theory&Research; Markets and Market Access; Access to Markets (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www-wds.worldbank.org/external/default/WDSC ... d/PDF/multi_page.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:64
Access Statistics for this paper
More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().