Ivory Coast plans market reforms to align farmer prices with global prices 

IVORY COAST – Ivory Coast is considering reforms to its cocoa marketing system aimed at aligning government-set farmgate prices more closely with international market levels, sources told Reuters. 

The move comes after a sharp decline in global cocoa prices triggered a cocoa sales crisis in the world’s top producer, leading to a build-up of unsold cocoa beans both inland and at the country’s ports. 

After reaching record highs in 2024, global cocoa futures have dropped significantly, losing roughly three-quarters of their value and currently trading near $3,300 per tonne. 

The fall in prices has created challenges for the country’s cocoa marketing structure. The government set the farmgate price for the previous season when international cocoa prices were still exceptionally high. As a result, the fixed price paid to farmers now sits above prevailing global market levels. 

This situation has made Ivorian cocoa less competitive in international markets, discouraging buyers and slowing export activity. 

The slowdown has contributed to a growing stockpile of cocoa beans. In response, the government has intervened to purchase part of the surplus, committing more than 500 billion CFA francs (US$892 million) to buy beans from farmers. 

Authorities have also taken steps to adjust pricing within the sector. The government recently reduced the farmgate cocoa price to between 800 and 1,000 CFA francs per kilogram as part of measures aimed at addressing the accumulation of unsold stocks. 

A government source indicated that reforms are being considered to ensure the sector can respond more effectively to global market fluctuations. 

“We already have a clear idea of the direction we want to take regarding both the internal and external organisation of the cocoa sector,” the source said. “The system needs to be more responsive and more realistic in relation to international market conditions.” 

Ivory Coast previously abandoned its decades-old state purchasing system during the 2012/13 season, replacing it with a framework based on forward sales. 

Under this system, cocoa is sold ahead of the harvest and the resulting revenue is used to determine the guaranteed farmgate price that is announced at the beginning of each season in October. 

Officials now say the framework may need to evolve to better cope with rapid changes in global cocoa markets. 

“We need a system that is more flexible and able to react faster,” another government source said. 

Some industry participants believe reforms should also focus on strengthening local exporters and enabling direct sales to chocolate manufacturers. 

Ismael Kone, chief executive of Ecorgine and a member of the advisory board of the Ivorian regulator, said the objective would be to expand market access for domestic exporters. 

“The goal would be twofold: allow cocoa to be sold directly to chocolate makers and develop stronger local exporting companies capable of competing with multinational traders,” Kone said. 

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