Media: Ivory Coast eyes cocoa price cut amid global slump

Ivory Coast is considering a reduction in the price it pays cocoa farmers to align with Ghana, as the world’s largest cocoa producers grapple with a sharp decline in global cocoa prices.

Officials say policymakers are reviewing “all options” following a significant downturn in international cocoa markets, Reuters reports.

The move comes after Ghana cut its farmgate price by 28.6% for the remainder of the 2025/26 main crop season in an effort to remain competitive amid falling global prices.

In October, Ivory Coast set a record farmgate price of 2,800 CFA francs (about US$5) per kilogram, up from 2,200 CFA francs (about US$3.93) announced during the mid‑harvest in April 2025. The farmgate price determines farmers’ earnings immediately after harvest, before exporters and processors add value.

Any reduction would directly affect millions of smallholder farmers who depend on cocoa production for their livelihoods.

Ivory Coast and Ghana together account for roughly 60% of global cocoa supply and have been coordinating policy through the Ivory Coast–Ghana Cocoa Initiative to manage market volatility and support farmer incomes.

“We have put all options on the table and discussions are progressing well. Courageous and realistic decisions will be taken soon,” an Ivorian official told Reuters.

Another official noted the steep decline in cocoa prices — which have fallen by nearly 50% in recent months — has significantly constrained the government’s ability to sustain current payment levels.

Cocoa futures on the Intercontinental Exchange slumped to their lowest in about two and a half years, weighed down by concerns over unsold stocks in both countries. The accumulation of inventories has added downward pressure on international prices.

“We must think about the survival of the cocoa sector in Ivory Coast. We need to act; changes are underway,” the official said.

An inter‑ministerial committee has met to assess the situation, with a potential announcement on pricing adjustments expected soon.

By Vafa Guliyeva