Ivory Coast considers cocoa price cut as global market decline forces policy shift
Government reviewing pricing policies as cocoa futures hit multi-year lows and farmers face rising financial pressure.
IVORY COAST – Ivory Coast is considering reducing the price it pays cocoa farmers to align with neighboring Ghana, as the world’s largest cocoa-producing countries respond to a sharp decline in global cocoa prices.
Officials said policymakers are reviewing “all options” following a major downturn in international cocoa markets, according to Reuters.
The review comes after Ghana reduced its farmgate price by 28.6% for the remainder of the 2025/2026 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 (US$5) per kilogram, up from 2,200 CFA francs (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 about 60% of global cocoa supply and have been coordinating policies 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 Ivory Coast official told Reuters.
Another official said the steep decline in cocoa prices, which have dropped by nearly 50% in recent months, has significantly limited the government’s ability to maintain current payment levels.
Cocoa futures on the Intercontinental Exchange fell to their lowest level in about two and a half years, weighed down by concerns over unsold cocoa stocks in both Ivory Coast and Ghana. The buildup of unsold inventories has contributed to 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 already met to assess the situation, and officials said a decision on potential pricing adjustments could be announced soon.
Alex Assanvo, executive secretary of the Ivory Coast–Ghana Cocoa Initiative, said both countries are responding to rapidly changing market conditions.
“The organisation remains mobilised to coordinate policies in both countries,” Assanvo said.
He added that trading teams from Ivory Coast’s Coffee and Cocoa Council and Ghana’s COCOBOD remain in close communication to monitor developments and ensure coordinated responses.
Assanvo also defended the Living Income Differential, introduced in 2019 to improve farmer incomes, saying recent price volatility highlights the need for continued protective measures and strengthened market stabilization mechanisms for cocoa farmers.
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