The Ivory Coast is considering reducing its guaranteed farm gate price for cocoa farmers to align with Ghana’s 28.6% cut for the 2025/2026 main crop season, according to Reuters. This move comes as global cocoa prices plummet by nearly 50%, putting immense financial pressure on farmers.
According to the Ivory Coast–Ghana Cocoa Initiative (ICCIG), the two top cocoa-producing countries are coordinating closely to prevent structural damage to the sector. ICCIG Executive Secretary Alex Assanvo emphasized that recent market volatility highlights the importance of the Living Income Differential (LID) in protecting farmers’ incomes.
The ICCIG has been working to coordinate policies between the Ivory Coast’s Coffee and Cocoa Council (CCC) and Ghana’s COCOBOD. Assanvo stated that the organization remains mobilized to coordinate policies and review price-stabilization mechanisms to mitigate financial pressure on farmers.
Senior Ivorian officials indicate that all options are on the table, and discussions are progressing well. “We have put all options on the table and discussions are progressing well. Courageous and realistic decisions will be taken soon,” an official said, requesting anonymity.
The potential price cut is expected to have significant implications for global cocoa markets, as the Ivory Coast and Ghana account for about 60% of global cocoa output. Exporters and buyers expect the Ivory Coast to announce a cut soon, saying it’s now a matter of timing.
The move underscores the challenges facing West Africa’s cocoa producers as they navigate plunging prices and sector sustainability concerns.
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Author: Korkor Anumu
