Ivory Coast is considering reducing the price it pays cocoa farmers to align with Ghana, as the world’s two largest cocoa producers struggle with a deep crisis in the global cocoa market, according to government sources.
Senior officials in Ivory Coast told Reuters that the government is debating whether to follow Ghana’s recent decision to cut its farmgate price by 28.6% for the remainder of the 2025/2026 main crop season. The move was coordinated with Abidjan as both countries adjust to sharply falling global cocoa prices.
The farmgate price refers to the amount paid directly to farmers for their cocoa beans after harvest, before intermediaries such as exporters, processors, traders, or cooperatives add value.
Sources said discussions between Ghana and Ivory Coast, as well as internal deliberations within the Ivorian government on a possible price cut, had not previously been made public.
The Ivory Coast–Ghana Cocoa Initiative (ICCIG) confirmed that the two countries, which together produce about 60% of the world’s cocoa, have been coordinating closely since the crisis began.
“We have put all options on the table and discussions are progressing well. Courageous and realistic decisions will be taken soon,” one senior Ivorian official said, speaking on condition of anonymity.
Another official noted that the continuous decline in global cocoa prices—down nearly 50% in recent months—has left the government with limited options.
Cocoa futures on the ICE exchange recently hit their lowest level in two and a half years, driven by concerns over large unsold cocoa stocks in both Ivory Coast and Ghana.
“We must think about the survival of the cocoa sector in Ivory Coast. We need to act; changes are underway,” the source added.
According to the sources, an inter-ministerial committee has already met to discuss the issue, and a decision could be announced soon. A spokesperson for the Ivorian government declined to comment on the matter.
Measures to prevent long-term damage
ICCIG Executive Secretary Alex Assanvo said both countries are taking steps to prevent structural damage to their cocoa sectors as they adapt to the sudden market downturn.
He revealed that the trading teams of Ivory Coast’s Coffee and Cocoa Council and Ghana’s COCOBOD remain in close contact. Assanvo also defended the Living Income Differential (LID), introduced in 2019 to boost farmers’ earnings, saying recent market volatility highlights its continued importance.
ICCIG is preparing a joint meeting between the two countries to strengthen coordination, as farmers face growing financial pressure. The organisation plans to bring together key industry players to review market developments and propose improvements to price stabilisation mechanisms.
Exporters and buyers expect Ivory Coast to announce a price cut soon, with many believing it is only a matter of time.
“The country is resisting, but for how long? I don’t see Ivory Coast doing something different from Ghana,” said the head of an export company based in Abidjan.
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