Neighbouring Ivory Coast, the world’s leading cocoa producer, is contemplating a significant increase in farmgate prices for the upcoming cocoa harvest, surpassing rival Ghana’s prices. However, despite this potential hike, farmers in both countries would still be earning considerably less than the global market price for cocoa.
Le Conseil Cafe-Cacao (CCC), the industry regulator in Ivory Coast, is aiming to set a price between 1,850 CFA and 2,000 CFA per kilogram of well-dried cocoa for the main crop starting in October. This would represent an increase of at least 23% from the mid-crop harvest, which concludes this month, equating to $3,140 (GH¢49,298) to $3,400 (GH¢53,380) per ton, according to sources who requested anonymity due to the confidential nature of the information.
Earlier this year, cocoa futures soared to a record high, exceeding $11,000 (GH¢172,700) per ton due to harvest shortfalls across West Africa. Although prices have since moderated, December contracts are still trading above $7,500 (GH¢117,750) per tonne in New York.
Both Ghana and Ivory Coast increased cocoa prices during the 2023-24 season, but local farmers have not fully reaped the benefits of the global price surge. This situation has fueled smuggling to neighboring countries like Liberia and Guinea, where cocoa prices are higher, and regulations are less stringent.
Ultimately, the final decision on Ivory Coast’s cocoa prices lies with the president’s office, although a spokesperson declined to comment. Efforts to reach CCC officials for a response were unsuccessful.
Farmers selling their cocoa beans across borders not only affect the official production statistics but also complicate fulfilling forward sales agreements, potentially leading to revenue losses for the country. The ongoing bean smuggling, combined with a decline in cocoa output, contributed to supply shortages that forced the Ivorian regulator to roll over contracts to avoid defaulting with exporters.
Ivory Coast is estimated to have lost between 150,000 and 200,000 tons of cocoa beans to smuggling this season. With relatively porous borders, both Ivory Coast and Ghana have struggled with this issue for years, leading to persistent production and revenue challenges.
