Cocoa purchases in Ivory Coast have slowed significantly at the beginning of the 2025/26 season, as record-high farmgate prices and declining bean quality discourage buyers and exporters, according to industry sources who spoke with Reuters
The world’s leading cocoa producer increased its state-guaranteed farmgate price to 2,800 CFA francs ($5.05) per kilogram on October 1, a level traders described as unusually high.
The sharp increase has made exporters hesitant to provide funds to local buyers to support cocoa purchases, sources said.
“This year, no funding has been provided, as was usually the case in August and September,” said a Lebanese buyer based in the southwestern port city of San Pedro.
He added that banks were also unwilling to extend financing, citing the high risks in case of any unforeseen events.
Exporters are now grappling with soaring operational costs. The commercial director of an export firm in Abidjan said expenses range between 98 million and 112 million CFA francs ($175,156–$200,179) to transport a truckload of 35 to 40 tons of cocoa.
“No one has the money to pay for five or ten trailer trucks a day at the moment, especially if there is a problem with the quality of the beans,” he said, noting that his company had scaled back operations to conserve liquidity and strengthen quality control.
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Buyers and cooperatives estimate that around 50,000 tons of cocoa beans were stored ahead of the new season in anticipation of the price increase.
However, local grinders are rejecting much of the stock due to small bean size, low fat content, and high acidity.
“We didn’t receive any pre-financing this year, so I was hoping to quickly sell the cocoa I had stored in order to have cash to start buying new cocoa, but no one wants to take it,” said an independent Lebanese buyer in San Pedro.
“I have 3,000 tons available, and until I sell it, I can’t buy anything,” he told Reuters.
Another Lebanese buyer from San Pedro expressed optimism that a solution could be reached, possibly by lowering the price and blending the old beans with new ones.
He currently holds 900 tons of cocoa after selling 700 tons since the season began.
Industry experts and pod counters expect the main crop production for the 2025/26 season to remain roughly in line with last season’s output.
However, they cautioned that the early harvest is likely to be smaller, citing inconsistent and unpredictable weather conditions.
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Image Credit: Reuters
