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African Farmers Should Determine Cocoa Price – Ooni

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Cocoa farm
  • African Farmers Should Determine Cocoa Price

The Ooni of Ife, Oba Adeyeye Ogunwusi, said cocoa farmers in Africa should be allowed to determine the price of the produce in the international market.

The monarch, who made the call at the first Regional Cocoa Symposium held at the International Institute of Tropical Agriculture, Ibadan on Tuesday, said it was morally wrong for external bodies to determine what the price of a farm produce would be, bearing in mind the fact that Africa was producing 70 per cent of the global cocoa yield.

The Senior Programme Director for West African Programme, World Cocoa Foundation, Mr. Paul Macek, said the symposium was held to encourage farmers to improve on the production of cocoa.

The Ooni said, “If you produce something, you should be able to determine the price, but cocoa is not like that. And for a region producing about 70 per cent of the global consumption and yet you don’t have a say on the price.

“The price is being determined at the New York Stock Exchange and London Stock Exchange. I don’t think that is morally fair to the producers. I don’t think the principle of fairness and equity is in that at all.

“If they say cocoa price today is $2,000 per tonne because of market forces; that is what it’s going to be. If by tomorrow, they say it is $1,000; that is what it is going to be. What is important is for all the farmers to be considered in determining the price. This is beyond Nigeria now.

“All the cocoa producing countries in Africa should come together and work as one big and happy family to address this injustice and to the glory of God, this gathering is a global gathering and I have begun the process by putting it across to them.”

The three-day event had participants drawn from across the cocoa producing countries of the West and Central African regions as well as international stakeholders.

The Ooni of Ife, who was optimistic about the enormous financial and employment creation potential in cocoa production, said allowing the producing countries to determine the prices would go a long way in encouraging the youth to embrace cocoa cultivation.

The monarch added, “Look at it (from this way), if they buy cocoa for $2,000, for instance, they will use it to get more than $30,000 value; you can see how wide the margin of impact is. We need to correct the injustice so as to encourage our youths to embrace the farming and cultivation of cocoa

“Africans produce up to 70 per cent of the cocoa that is needed globally, yet the price is not determined by Africans but by Europe, where the crop is not produced. They should break this disparity between the cocoa farmers in Africa and those buying in Europe.

“So many farmers in Africa have not had the opportunity to taste chocolate, yet they work all their lives producing cocoa at its best. Stakeholders don’t have to wait until the farmers in tropical Africa producing cocoa team up to form a cartel and refuse to supply cocoa until they are being carried along in determining the price of cocoa.”

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Brent Crude Oil Approaches $70 Per Barrel on Friday

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Crude oil

Nigerian Oil Approaches $70 Per Barrel Following OPEC+ Production Cuts Extension

Brent crude oil, against which Nigerian oil is priced, rose to $69 on Friday at 3:55 pm Nigerian time.

Oil price jumped after OPEC and allies, known as OPEC plus, agreed to role-over crude oil production cuts to further reduce global oil supplies and artificially sustain oil price in a move experts said could stoke inflationary pressure.

Brent crude oil rose from $63.86 per barrel on Wednesday to $69 per barrel on Friday as energy investors became more optimistic about the oil outlook.

While certain experts are worried that U.S crude oil production will eventually hurt OPEC strategy once the economy fully opens, few experts are saying production in the world’s largest economy won’t hit pre-pandemic highs.

According to Vicki Hollub, the CEO of Occidental, U.S oil production may not return to pre-pandemic levels given a shift in corporates’ value.

“I do believe that most companies have committed to value growth, rather than production growth,” she said during a CNBC Evolve conversation with Brian Sullivan. “And so I do believe that that’s going to be part of the reason that oil production in the United States does not get back to 13 million barrels a day.”

Hollub believes corporate organisations will focus on optimizing present operations and facilities, rather than seeking growth at all costs. She, however, noted that oil prices rebounded faster than expected, largely due to China, India and United States’ growing consumption.

The recovery looks more V-shaped than we had originally thought it would be,” she said. Occidental previous projection had oil production recovering to pre-pandemic levels by the middle of 2022. The CEO Now believes demand will return by the end of this year or the first few months of 2022.

I do believe we’re headed for a much healthier supply and demand environment” she said.

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Crude Oil

Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

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Oil Jumps to $67.70 as OPEC+ Extends Production Cuts

Brent crude oil, against which Nigerian oil is priced, rose to $67.70 per barrel on Thursday following the decision of OPEC and allies, known as OPEC+, to extend production cuts.

OPEC and allies are presently debating whether to restore as much as 1.5 million barrels per day of crude oil in April, according to people with the knowledge of the meeting.

Experts have said OPEC+ continuous production cuts could increase global inflationary pressure with the rising price of could oil. However, Saudi Energy Minister Prince Abdulaziz bin Salman said “I don’t think it will overheat.”

Last year “we suffered alone, we as OPEC+” and now “it’s about being vigilant and being careful,” he said.

Saudi minister added that the additional 1 million barrel-a-day voluntary production cut the kingdom introduced in February was now open-ended. Meaning, OPEC+ will be withholding 7 million barrels a day or 7 percent of global demand from the market– even as fuel consumption recovers in many nations.

Experts have started predicting $75 a barrel by April.

“We expect oil prices to rise toward $70 to $75 a barrel during April,” said Ann-Louise Hittle, vice president of macro oils at consultant Wood Mackenzie Ltd. “The risk is these higher prices will dampen the tentative global recovery. But the Saudi energy minister is adamant OPEC+ must watch for concrete signs of a demand rise before he moves on production.”

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Gold

Gold Hits Eight-Month Low as Global Optimism Grows Amid Rising Demand for Bitcoin

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Gold Struggles Ahead of Economic Recovery as Bitcoin, New Gold, Surges

Global haven asset, gold, declined to the lowest in more than eight months on Tuesday as signs of global economic recovery became glaring with rising bond yields.

The price of the precious metal declined to $1,718 per ounce during London trading on Thursday, down from $2,072 it traded in August as more investors continue to cut down on their holdings of the metal.

The previous metal usually performs poorly with rising yields on other assets like bonds, especially given the fact that gold does not provide streams of interest payments. Investors have been jumping on US bonds ahead of President Joe Biden’s $1.9 trillion coronavirus stimulus package, expected to stoke stronger US price growth.

We see the rising bond yields as a sign of economic optimism, which has also prompted gold investors to sell some of their positions,” said Carsten Menke of Julius Baer.

Another analyst from Commerzbank, Carsten Fritsch, said that “gold’s reputation appears to have been tarnished considerably by the heavy losses of recent weeks, as evidenced by the ongoing outflows from gold ETFs”.

Experts at Investors King believed the growing demand for Bitcoin, now called the new gold, and other cryptocurrencies in recent months by institutional investors is hurting gold attractiveness.

In a recent report, analysts at Citigroup have started projecting mainstream acceptance for the unregulated dominant cryptocurrency, Bitcoin.

The price of Bitcoin has rallied by 60 percent to $52,000 this year alone. While Ethereum has risen by over 660 percent in 2021.

 

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