5 days ago
Ivory Coast Set to Keep Cocoa Price at 1,200 CFA
Ivory Coast may keep paying cocoa farmers 1,200 CFA francs for each kilogram of cocoa next season.
The season starts on September 1.
Farmers had briefly received a much higher price of 2,800 CFA francs per kilogram.
The government lowered the price after cocoa prices on world markets dropped.
Officials say keeping the lower price will cost the government less money than raising it and providing subsidies.
Cocoa prices later increased again on global markets.
Experts say farmers or traders may move cocoa into nearby countries where prices or taxes are different.
Ghana plans to keep its price unchanged for now but may review it during the season.
Ivory Coast is expected to maintain its cocoa farmgate price at 1,200 CFA francs per kilogram for the 2026/27 main crop.
The price was cut from a record 2,800 CFA francs per kilogram in March after global cocoa prices fell.
The Coffee and Cocoa Council reportedly sold more than 1.1 million tons in advance at low prices.
Industry sources warn that the price gap could increase cocoa smuggling into Ghana, Liberia and Guinea.
Ghana is expected to keep its price unchanged while reviewing it periodically under a new law.
- Who
- Ivory Coast's government and Coffee and Cocoa Council, cocoa farmers, industry sources, and neighboring cocoa markets.
- What
- Ivory Coast is expected to maintain a guaranteed cocoa price of 1,200 CFA francs per kilogram for the 2026/27 main crop.
- Where
- Ivory Coast, with possible effects on cocoa flows into Ghana, Liberia and Guinea.
- When
- The 2026/27 main crop season begins September 1; the expected price was reported on August 28.
- Why
- Sources say the price reflects low forward-sale prices and would limit the cost of government subsidies.
Lower Price and Fiscal Control
Higher Price and Regional Market Risks
Government price strategy
Lower Price and Fiscal Control
Ivory Coast government sources say maintaining 1,200 CFA francs is the least costly option because a higher guaranteed price would require billions in subsidies.
Higher Price and Regional Market Risks
Industry sources note that global cocoa prices later rose substantially, potentially making the fixed price appear low compared with international market conditions.
Impact on cocoa flows
Lower Price and Fiscal Control
A lower fixed price avoids additional pressure on Ivory Coast's public finances after the regulator made large advance sales at low prices.
Higher Price and Regional Market Risks
Industry sources warn that the price disparity could encourage smuggling into Ghana, Liberia and Guinea, where taxes are absent and major foreign buyers operate.
Regional pricing policy
Lower Price and Fiscal Control
Ghana is expected to leave its farmer price unchanged for the new season.
Higher Price and Regional Market Risks
Under Ghana's new law, the Ghana Cocoa Board will review the farmer price periodically rather than fixing it for the entire season.
Key facts
- Expected Ivory Coast price
- 1,200 CFA francs per kilogram
- 2025/26 starting price
- 2,800 CFA francs per kilogram
- 2026/27 season
- Begins September 1
- Ivory Coast price range proposed by regulator
- 1,200 to 1,500 CFA francs per kilogram
- Advance sales
- More than 1.1 million tons reportedly sold at low prices
- Ghana's reported price
- 41,392 cedis, or approximately 2,000 CFA francs per kilogram
- Global cocoa prices
- About £2,100 per metric ton in early March, rising above £4,800 afterward
Quotes
Director of a European export company
Director of a European cocoa export company based in Abidjan
“We have a clear idea of the CCC's average sales, and we know the guaranteed price for the 2026/27 main crop could not exceed 1,300 CFA francs”
livemint.com
Government source
Unnamed government source discussing Ivory Coast’s cocoa pricing policy
“Our simulations indicate that maintaining the guaranteed price... is the best solution and the least costly option for public finances because, beyond that, we will have to subsidize the price once again, and that will cost billions”
livemint.com
