Ivory Coast is considering reducing the price paid to cocoa farmers, following a similar move by neighboring Ghana, as global cocoa prices have plunged nearly 50% in recent months, as reported by Reuters. The potential cut raises concerns over farmer incomes and the stability of the global chocolate supply chain.
Officials say the two countries, which together account for roughly 60% of global cocoa supply, are coordinating through the Ivory Coast–Ghana Cocoa Initiative to make policy adjustments. “Courageous and realistic decisions will be taken soon,” one senior Ivorian official said.
Ghana recently cut its farmgate price by 28.6% for the remainder of the 2025–2026 main crop season and introduced a bond-backed financing model to stabilize the sector. The farmgate price determines how much farmers earn immediately after harvest, before any processing or trading. A similar reduction in the Ivory Coast would directly impact millions of smallholder growers who rely on cocoa exports for income and foreign exchange.
The downturn in cocoa prices has been intensified by unsold stocks in both countries and by declining futures on the ICE exchange, which recently hit its lowest level in two and a half years. “We must think about the survival of the cocoa sector in the Ivory Coast,” a second official said, signaling that policy adjustments are already underway.
An inter-ministerial committee has reportedly met to review options, although the government has yet to issue an official statement. Industry experts say that coordination between regulators remains active. Alex Assanvo, executive secretary of the ICCIG, emphasized the importance of tools like the Living Income Differential, introduced in 2019 to support farmer earnings amid volatile prices.
Exporters in Abidjan increasingly expect the Ivory Coast to announce a price adjustment soon. For global chocolate manufacturers and investors, the potential cut highlights a deepening structural challenge in the cocoa market that could reshape supply dynamics across West Africa.
