Ivory Coast will purchase up to 100,000 metric tons of unsold cocoa to support farmers amid falling global prices, Agriculture Minister Kobenan Kouassi Adjoumani announced on Tuesday. The move follows President Alassane Ouattara’s decision to raise the fixed farmgate price for the 2025/26 main crop to a record 2,800 CFA francs per kilogram, a measure intended to keep cocoa within the country and discourage smuggling to neighbouring Ghana and Liberia.
Adjoumani explained that some cocoa production from neighbouring states has already flowed into Ivory Coast, exacerbating the domestic surplus. Currently, producers hold approximately 123,000 tons of unsold cocoa, while declining international prices have slowed purchases by exporters and caused congestion at key ports, including San Pedro. The government also plans to tighten border controls to reduce inflows from neighbouring countries, aiming to stabilise the domestic market and protect farmers’ incomes.
Ivory Coast is the world’s largest cocoa producer, and cocoa remains a cornerstone of the country’s economy. Exports generate substantial foreign exchange, employ millions of farmers and seasonal workers, and support rural communities. Any disruptions in the cocoa market can therefore have wide-ranging economic and social consequences, from reduced household incomes to slower fiscal revenue collection. Analysts say that by actively purchasing excess cocoa and maintaining the farmgate price, the government is taking steps to prevent both economic hardship and potential social unrest in rural regions.
The intervention is also designed to address challenges created by price volatility in the global cocoa market. International cocoa prices have declined this year, a trend that has affected both Ghana and Ivory Coast. Falling prices can make exporters cautious, limiting the speed at which they purchase from farmers and creating stockpiles in producing regions. Without government intervention, such bottlenecks could force farmers to sell at discounted rates or risk crop spoilage, undermining livelihoods and long-term productivity.
The record farmgate price of 2,800 CFA francs per kilogram provides a strong incentive for producers to sell domestically rather than seeking higher returns abroad, including via informal channels. Smuggling to neighbouring Ghana and Liberia has historically been a challenge for Ivory Coast, particularly when domestic prices lag behind regional markets. By boosting the official price and controlling cross-border flows, the government hopes to retain production within national markets, ensuring farmers receive fair compensation while maintaining market stability.
Economists note that the strategy also serves as a buffer against potential fiscal and social pressures. Cocoa farming is heavily concentrated in rural areas, where communities rely almost entirely on seasonal income from the crop. Payment delays or steep price declines can strain households’ ability to pay loans, maintain farms, and meet basic needs, potentially leading to broader social tensions. By purchasing surplus cocoa and upholding the farmgate price, the government aims to mitigate these risks and safeguard social stability in key producing regions.
The initiative could also influence regional cocoa markets. Ghana, the world’s second-largest producer, has been facing its own challenges with unsold cocoa due to delayed payments and lower global prices. Ivory Coast’s decision to absorb excess cocoa domestically may reduce cross-border smuggling and stabilise regional supply flows. Traders and exporters are likely to adjust procurement strategies, and international buyers may see more predictable volumes from Ivory Coast in the short term.
However, the intervention carries fiscal implications. Purchasing tens of thousands of metric tons of cocoa at a record farmgate price represents a high cost for the state, adding to budgetary pressures. Observers say the success of the strategy will depend on the government’s ability to efficiently store, transport, and eventually process or export the purchased cocoa without incurring losses. Effective coordination between agricultural agencies, port authorities, and traders will be critical.
Ivory Coast is taking proactive measures to support cocoa farmers amid a global price slump by purchasing up to 100,000 metric tons of unsold beans, maintaining a record farmgate price, and tightening border controls. The intervention aims to protect farmers’ incomes, preserve social stability, and ensure the country retains its dominant position in the global cocoa market, even as international prices remain volatile.
