Ivory Coast Raises Cocoa Prices 22% to Boost Farmers’ Incomes.

Thursday 17th April 2025

Par inAfrika Reporter

Ivory Coast has significantly raised the price it guarantees cocoa farmers for the April –September mid-crop harvest, offering a major boost to rural incomes. The government announced a 22% increase in the farmgate price to 900 CFA francs per kilogram, up from the previous 735 CFA/kg. The change, which took effect on April 1, means Ivorian cocoa farmers will now earn the equivalent of roughly $2,600 per tonne for this smaller of the country’s two annual harvests.

The decision was driven by strong export contract sales earlier in the season and a generally favorable global cocoa market. According to the Coffee-Cocoa Council, these factors created room to increase what farmers are paid without risking fiscal instability. The announcement was welcomed with joy across cocoa-growing communities. Many farmers and cooperatives expressed relief, noting that the additional income will help them manage rising costs of fertilizers, school fees, and other essentials. One cooperative leader shared, “This will help us afford fertilizer and school fees for our children.”

Ivory Coast is the world’s leading cocoa producer, and its economy relies heavily on the crop. Yet, many of its farmers live in poverty, earning a small fraction of the profits made further up the chocolate value chain. This price increase, then, is more than a seasonal adjustment it’s also a political and economic statement. President Alassane Ouattara’s administration has faced pressure from civil society groups and local communities to improve farmers’ livelihoods, especially considering cocoa’s role in the global $100 billion chocolate industry.

The move also fits within a broader push by Ivory Coast and neighboring Ghana, the second-largest cocoa producer, to gain greater control and value from their natural resources. The two countries had formed a joint cocoa marketing initiative – often referred to as the “Cocoa OPEC” to strengthen their bargaining power with multinational chocolate companies and to advocate for better prices for farmers. However, while Ivory Coast proceeded with the mid-crop increase, Ghana opted to maintain its current farmgate price, citing financial constraints and Cocobod’s ongoing budget struggles.

This divergence in pricing between the two countries could have ripple effects. Historically, whenever Ivory Coast offers significantly higher prices, there is a risk of cocoa smuggling from Ghana across the border as farmers seek better earnings. This disrupts trade data and can weaken regulatory control. The current price difference around $780 more per tonne in Ivory Coast is large enough to raise concern among Ghanaian farmers and policymakers alike.

Economists say Ivory Coast was able to manage the increase due to a combination of good forward sales, which locked in favorable prices early on, and its use of a stabilization fund that cushions the impact of global price swings. Still, they caution that if global cocoa prices were to decline or if the upcoming main crop underperforms, maintaining such high farmer prices could become a challenge. For now, however, the boost is expected to inject fresh cash into rural economies and may encourage farmers to reinvest in their cocoa farms, potentially increasing production.

International observers are also watching closely. Consumers and chocolate brands are increasingly interested in ethical sourcing and fair compensation for producers. Ivory Coast’s move sends a message to global chocolate companies that producing nations are willing to act decisively when conditions allow. While there may be concerns about eventual price shifts in consumer markets, this development aligns with the broader movement toward more responsible supply chains.

Ultimately, the 22% price hike signals a commitment to improving the welfare of cocoa farmers and may set a precedent for future policies. It reinforces the principle that when market conditions are favorable, producers should share more of the gains – a key goal of Ivory Coast and Ghana’s joint cocoa initiative.