Madagascar’s cocoa industry is facing economic uncertainity amid declining prices of the comodity in the international market.
The new development has increased pressure among producers, small scall producers and exporters over declined in revenue in the trade that is highly depended in the country.
At the same time, there have been a decline in agricultural prices across the continet causing instability in trade and disruption among expert dependant countries.
The price of cocoa in the international market has for the last two years been volatile with the prices surging to a record high due to increased demand and shortages caused adverse weather in major producing countries such as Ghana and Côte d’Ivoire.
The trend has however shifted with improved harvest expection and declined demand that corrected the international prices.
In Madagascar, the decline in prices is understable due to the country’s reliance on the commodity and source of livelihood among many small scale producers. Madagascar’s cocoa has been ranked among the best in the world due to its unique taste.
Despite the good reputation, the prices of the commodity have declined due to increase pressure on its exportation and limited processing capabiltlity in the country. The decline in exports has also compressed profit margin among farmers.
Experts have however warned that if the trend continues, small scale producers and families will bear the impact caused by disruption in their source of income which is cocoa production.
Flactuation in international prices remains a major topic of discussion among african countries who have been urged to venture into value addition in order to boost there revenues.
