Ivory Coast is considering reducing the price it pays cocoa farmers in order to align with Ghana, two government sources told Reuters, as the world’s top cocoa-producing nations grapple with a deepening crisis in the sector.
Senior Ivorian officials said every option is being examined as the government debates whether to follow Ghana’s decision to slash its farmgate price by 28.6% for the remainder of the 2025/2026 main crop season.
The farmgate price, set at the start of the harvest, is the amount farmers receive for their cocoa after harvest and before any intermediaries, including exporters, processors, traders, or cooperatives, add value.
The discussions between the two countries, as well as internal deliberations within Ivory Coast about aligning its pricing with Ghana, have not previously been reported.
The Ivory Coast–Ghana Cocoa Initiative (ICCIG) stated that both countries, which together produce roughly 60% of the world’s cocoa, have been closely coordinating 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,” the first Ivory Coast official said, requesting anonymity because they are not authorised to speak publicly on the matter.
A second official noted that cocoa prices have fallen nearly 50% in recent months, significantly limiting the government’s room to manoeuvre.
Cocoa futures on the Intercontinental Exchange (ICE) dropped to their lowest level in two and a half years on Tuesday, as concerns over unsold cocoa stocks in Ivory Coast and Ghana continued to pressure the market.
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“We must think about the survival of the cocoa sector in Ivory Coast. We need to act; changes are underway,” the source added, without providing further details.
According to the two sources, an inter-ministerial committee has already met to discuss the issue, and a decision could be announced soon.
A spokesperson for the Ivory Coast government did not respond to Reuters’ request for comment.
Alex Assanvo, executive secretary of the ICCIG, said both nations are adjusting to the sudden market downturn and have introduced measures aimed at preventing long-term structural damage to the sector.
He confirmed that the trading desks of Ivory Coast’s Coffee and Cocoa Council and Ghana’s COCOBOD remain in regular contact.
Assanvo also defended the Living Income Differential, introduced in 2019 to improve farmers’ earnings, arguing that recent market volatility highlights its continued importance.
The ICCIG is preparing a bilateral meeting to further strengthen coordination as farmers face mounting financial strain.
“The organisation remains mobilised to coordinate policies in both countries,” Assanvo said, adding that all stakeholders in the cocoa sector would be brought together to assess market developments and recommend improvements to price-stabilisation mechanisms.
Exporters and buyers anticipate that Ivory Coast will soon announce a price reduction, saying the issue is no longer whether it will happen but when.
“The country is resisting, but for how long? I don’t see Ivory Coast doing something different from Ghana,” said the head of an Abidjan-based export company.
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Image Credit: The Chocolate Life
