Ivory Coast to Boost Cocoa Farmgate Price Amid Global Market Deficit

Yamoussoukro, Ivory Coast (TAE)-In a significant move, Ivory Coast, the world's premier cocoa exporter, is set to increase the official cocoa farmgate price to 1,500 CFA francs ($2.47) per kilogram starting Tuesday, marking a substantial rise from the current rate of 1,000 CFA. This decision arrives on the heels of President Alassane Ouattara's announcement last Saturday, initially validating a proposal for a price range between 1,100 and 1,200 CFA francs per kilogram before opting for an even higher adjustment.

The surge in the farmgate price comes in response to the global cocoa market experiencing more than a threefold increase in cocoa prices over the last year. Factors such as disease and adverse weather conditions have contributed to a third consecutive year of market deficits. Despite these challenges, the official farmgate price paid to growers in Ivory Coast had not been adjusted to reflect the steep rise in global market prices until now.

Major chocolate and cocoa product manufacturers, including Hershey, Nestle, Mondelez, and Barry Callebaut, are among the key buyers of Ivory Coast cocoa. These companies have been closely monitoring the situation, as the price adjustment could influence global cocoa supply chains and pricing strategies.

The decision to raise the farmgate price is not only a reflection of the current market dynamics but also underscores Ivory Coast's commitment to ensuring that its cocoa growers are fairly compensated. This move is particularly significant considering the country's past actions to address price disputes. In 2022, Ivory Coast, along with Ghana, boycotted industry meetings in Brussels over a disagreement on cocoa pricing, highlighting the critical importance of fair pricing for the sustainability of the cocoa industry.

The cocoa sector is a cornerstone of the Ivory Coast economy, supporting nearly six million people. The industry's health is vital for the nation's socio-economic stability, making the government's proactive stance in adjusting the farmgate price a crucial step towards safeguarding the livelihoods of countless farmers and their families.

As the global cocoa market continues to navigate through uncertainties, the Ivory Coast's latest decision is a beacon of hope for cocoa growers. It signals a stronger alignment of domestic pricing policies with international market realities, potentially setting a precedent for other cocoa-producing nations.