Ivory Coast Considers Matching Ghana’s Cocoa Price Reduction as Global Prices Slump
Ivory Coast is considering cutting the guaranteed farm gate price paid to cocoa farmers to align with Ghana, as the world’s leading cocoa producers grapple with a deepening crisis triggered by a sharp collapse in global prices.
Two senior government sources told Reuters that all options remain on the table, as Abidjan debates whether to follow Ghana’s decision to reduce its farm gate price by 28.6 percent for the remainder of the 2025/2026 main crop season. The move by Ghana was taken in coordination with Ivory Coast as both countries adjust to plunging international cocoa prices.
The sources disclosed that 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.
Ivory Coast and Ghana, which together account for about 60 percent of global cocoa output, have been coordinating closely since the onset of the crisis, according to the Ivory Coast–Ghana Cocoa Initiative (ICCIG).
“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, requesting anonymity due to a lack of authorisation to speak publicly.
Another official noted that the nearly 50 percent decline in cocoa prices in recent months has significantly narrowed the government’s policy space.
“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 provide further details.
The officials confirmed that an inter-ministerial committee has already met to consider the issue, with a decision expected in the near term. A spokesperson for the Ivorian government did not respond to requests for comment.
Measures to protect the sector
Commenting on the situation, ICCIG Executive Secretary Alex Assanvo said both countries were adapting to the sudden market reversal and had adopted measures aimed at preventing structural damage to the cocoa sector.
He disclosed that the trading rooms of Ivory Coast’s Coffee and Cocoa Council (CCC) and Ghana’s COCOBOD remain in close and regular contact.
Assanvo also defended the Living Income Differential (LID)—introduced in 2019 to improve farmers’ earnings—arguing that recent market volatility had reinforced its relevance rather than undermined it.
The ICCIG, he said, is preparing a high-level meeting between Ghana and Ivory Coast to further strengthen coordination as cocoa farmers face mounting financial pressure.
“The organisation remains mobilised to coordinate policies in both countries,” Assanvo said, adding that all stakeholders in the cocoa value chain would be convened to assess market developments and propose improvements to existing price-stabilisation mechanisms.
Meanwhile, exporters and buyers expect Ivory Coast to announce a price cut soon, with industry players suggesting the issue is no longer if but when.
“The country is resisting, but for how long? I don’t see Ivory Coast doing something different from Ghana,” the head of an Abidjan-based export company said.
