Ivory Coast may end March with close to 200,000 tons of unsold cocoa, as tensions between regulators and international buyers slow exports.
The country, the world's largest cocoa producer, relies on the crop for export earnings and rural incomes. The buildup of stocks reflects a gap between the guaranteed farmgate price set by the Coffee and Cocoa Council and lower international market prices.
Authorities maintained producer prices after global cocoa surged in 2023 and 2024. Since then, futures in London and New York have fallen from record highs as demand slowed and supply expectations improved. Traders say current export conditions compress margins, making purchases less attractive.
As a result, shipments have slowed. Beans remain in warehouses and ports, and some contracts have not been executed. Buyers are taking a cautious approach amid price volatility and weaker demand from chocolate manufacturers.
Follow us on WhatsApp | LinkedIn for the latest headlines
The government has started to intervene. Public purchases of unsold cocoa are under way to support prices and protect farmer incomes. Officials are also reviewing the guaranteed price for the mid-crop harvest.
Together with Ghana, Ivory Coast accounts for about 50% of global cocoa output. Prolonged export disruptions could affect supply chains and pricing strategies for major confectionery companies.
Resolving the price gap will be key to preventing further stock accumulation and pressure on rural incomes.
Key Takeaways
Cocoa is central to Ivory Coast's economy. The sector supports millions of farmers and generates a large share of foreign exchange. When global prices rise, authorities can raise the farmgate price and increase rural incomes. When prices fall, the fixed system can create strain. Ivory Coast sells much of its cocoa through forward contracts. This model provides visibility on revenue but limits flexibility when prices swing. If international prices fall below domestic guaranteed levels, exporters face losses unless prices are adjusted. Global cocoa markets have been volatile. Supply concerns linked to weather and disease pushed prices above $10,000 per ton in 2024 before easing. Demand growth has slowed as higher chocolate prices affected consumption in Europe and North America. If unsold stocks persist, the government may need to revise producer prices or expand state purchases. Either step has fiscal implications. The episode shows the tension between income stability for farmers and alignment with global market signals in a commodity-dependent economy.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
