Ivory Coast is weighing a potential cut to the price it pays cocoa farmers in order to align with Ghana, according to two government sources who spoke to Reuters. Officials in Abidjan indicated that all options remain under consideration as the government debates whether to follow Ghana, which recently reduced its farmgate price by 28.6% for the remainder of the 2025/2026 main crop season. The move, coordinated with Ivory Coast, comes in response to plunging global cocoa prices.
The farmgate price—set at the start of each harvest—represents the amount farmers receive directly for their beans before intermediaries, exporters, processors, or cooperatives add value. Discussions between Ghana and the Ivory Coast, as well as internal deliberations in Abidjan over a possible price cut, had not been publicly disclosed until now.
Meanwhile, the Ivory Coast–Ghana Cocoa Initiative (ICCIG) said the two African countries, which together account for about 60% of global output, had been coordinating closely since the onset of the crisis in the sector. “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 on the issue.
The second official said the continued price fall, which has seen cocoa drop by nearly 50% in recent months, left the government with little room to manoeuvre. Cocoa futures on the ICE exchange hit their lowest level in 2-1/2 years on Tuesday as concern about unsold stocks of cocoa in Ivory Coast and Ghana continued to weigh on prices.
“We must think about the survival of the cocoa sector in Ivory Coast. We need to act; changes are underway,” the source said, declining to disclose further details. An inter-ministerial committee has met over the issue and a decision could come soon, the two sources said.
A spokesperson for the Ivory Coast government did not respond to a Reuters request for comment. Alex Assanvo, ICCIG’s executive secretary, said the two countries were adapting to the sudden market reversal and had taken measures to prevent structural damage.
He said the trading rooms of Ivory Coast’s Coffee and Cocoa Council and Ghana’s COCOBOD remained in regular contact. Assanvo also defended the Living Income Differential, introduced in 2019 to boost farmers’ earnings, saying recent market volatility underscored its relevance.
The ICCIG is preparing a meeting between Ivory Coast and Ghana to enhance coordination as cocoa farmers grapple with mounting financial pressures. “The organisation remains mobilised to harmonise policies across both countries,” Assanvo stated, noting that all stakeholders in the sector will be convened to assess market trends and recommend improvements to price-stabilisation mechanisms.
Exporters and buyers anticipate that Ivory Coast will announce a price cut soon, suggesting the issue is no longer about if but when. “The country is holding out, but for how long? I don’t see Ivory Coast taking a different path from Ghana,” remarked the head of an Abidjan-based export company.
Source: Reuters
