Keypoints:
- Cote d’Ivoire may align cocoa prices with Ghana
- Global cocoa prices have dropped nearly 50 percent
- Joint action aims to stabilise farmer incomes
COTE d’Ivoire is considering reducing the guaranteed farm gate price paid to cocoa farmers as a sharp downturn in global markets forces policymakers to reassess support measures for one of the country’s most important export sectors.
Senior government officials told Reuters that discussions are underway over whether to align with neighbouring Ghana, which has already lowered its farm gate price by 28.6 percent for the remainder of the 2025/2026 main crop season. The move reflects growing concern among the world’s leading cocoa producers about how to manage a sudden collapse in prices.
Together, Cote d’Ivoire and Ghana account for about 60 percent of global cocoa output, meaning coordinated policy decisions between the two countries can significantly influence international markets.
Cocoa giants confront market shock
After reaching historic highs in early 2024 due to supply shortages and adverse weather conditions, cocoa prices have fallen by nearly 50 percent in recent months. The rapid reversal has placed pressure on producer governments that must balance farmer welfare with fiscal sustainability, prompting urgent consultations on price adjustments and sector reforms.
Talks intensify between Abidjan and Accra
Two Ivorian officials, speaking anonymously because they were not authorised to comment publicly, said authorities were examining multiple policy options while maintaining close coordination with Ghana.
‘We have put all options on the table and discussions are progressing well. Courageous and realistic decisions will be taken soon,’ one official said, according to Reuters.
A second source said the scale of the price decline has narrowed the government’s room for manoeuvre.
‘We must think about the survival of the cocoa sector in Cote d’Ivoire. We need to act; changes are underway,’ the official added, declining to provide further details.
An inter-ministerial committee has already met to evaluate the situation, and a formal decision could be announced soon. A government spokesperson did not respond to Reuters’ request for comment.
ICCIG strengthens joint response
The Ivory Coast–Ghana Cocoa Initiative (ICCIG), established to coordinate policies between the two leading producers, confirmed that collaboration has intensified as market volatility deepens.
ICCIG Executive Secretary Alex Assanvo said both countries were adapting to rapidly changing conditions while seeking to prevent long-term structural damage to the sector.
He noted that trading teams at Cote d’Ivoire’s Coffee and Cocoa Council and Ghana’s COCOBOD remain in regular contact to monitor market developments and coordinate responses.
Assanvo also defended the Living Income Differential (LID), introduced in 2019 to improve farmer earnings, arguing that current volatility underscores the importance of price-support mechanisms.
‘The organisation remains mobilised to coordinate policies in both countries,’ he said, adding that stakeholders across the cocoa value chain would soon meet to review stabilisation tools and propose improvements.
Exporters anticipate imminent move
Industry participants increasingly expect Cote d’Ivoire to follow Ghana’s lead. Exporters and buyers say the debate now centres on timing rather than whether a price cut will occur.
‘The country is resisting, but for how long? I don’t see Cote d’Ivoire doing something different from Ghana,’ the head of an Abidjan-based export company told Reuters.
Analysts warn that while reducing farm gate prices could ease financial pressure on state marketing systems, it may deepen hardship for farmers already facing rising production costs, climate-related risks and ageing plantations.
Long-term stability at stake
The unfolding crisis highlights broader structural challenges in the global cocoa industry, including price volatility, income sustainability and supply coordination among producing nations.
For Cote d’Ivoire, cocoa exports remain central to rural livelihoods and national revenue. Decisions taken in the coming weeks are therefore expected to shape not only farmer incomes but also global cocoa pricing dynamics as markets search for stability after months of turbulence.
