Increased investment by Ivory Coast cocoa farmers in farms is likely to ensue as a consequence of inclement weather during the past harvest, farmers' groups told Bloomberg.
Growers of the soft commodity in the globe's top producer of the soft commodity are set to earn 8.7 percent more for cocoa beans this year. The West African nation last year adapted the cocoa industry with plans that include selling the majority of beans prior to an actual harvest.
"The higher price and the fact it is guaranteed may encourage farmers to invest more in their farms," group of cocoa-farmer cooperatives group chief Moussa Zoungrana told the news service on Thursday. "They may decide to extend their farms, plant new variety of seeds or better treat their plantations with fertilizers and pesticides."
At 9:46 a.m. on Friday, cocoa futures gained 0.67 percent, a $16 lift to $2,411 per metric ton.
But demand for the soft commodity from Europe fell during the second quarter as a result of the sovereign debt crisis, Reuters reports. Third quarter demand is slated to drop as much as 20 percent.