ABIDJAN, Feb 19 – Ivory Coast is considering a reduction in the price it pays cocoa farmers as it aligns with Ghana, two government sources told Reuters, as both countries respond to a sharp decline in global prices.
Officials said discussions are ongoing within the government and with Ghana on whether to adjust the farmgate price for the remainder of the 2025 to 2026 main crop season. Ghana has already cut its farmgate price by 28.6 percent, in coordination with Abidjan, as prices continue to fall.
The farmgate price is the amount paid directly to farmers after harvest before additional costs are added along the supply chain.
The two countries, which account for about 60 percent of global cocoa output, have been working closely through the Ivory Coast Ghana Cocoa Initiative since the market downturn began, according to the group.
Cocoa prices have dropped by nearly 50 percent in recent months, one of the sources said, limiting the government’s options. Futures on the ICE exchange fell to their lowest level in about two and a half years this week, reflecting concerns over unsold stock in both countries.
An inter ministerial committee has met to review the situation, and a decision could be announced soon, the sources said.
Ghana’s marketing board, COCOBOD, and Ivory Coast’s Coffee and Cocoa Council remain in regular contact as both countries assess market conditions, ICCIG Executive Secretary Alex Assanvo said.
Assanvo said the Living Income Differential, introduced in 2019 to support farmer earnings, remains relevant despite recent price volatility.
Exporters and traders expect Ivory Coast to adjust its price in line with Ghana, as pressure builds across the sector.
