Ivory Coast Cocoa Processors Reject Mid-Crop Purchases, Call for Price Relief
Cocoa processors in Ivory Coast are refusing to purchase beans from the upcoming mid-crop, arguing that domestic prices remain unsustainably high despite the recent collapse in global cocoa markets. According to multiple government and industry sources, processors are now pressing authorities for tax relief and regulatory concessions to restore margins and keep operations running.
The standoff adds to mounting pressure on the world’s largest cocoa producer at a time when it is already struggling to offload record volumes of beans from the main crop.
Processors Push Back Against High Costs
Local processors say current farmgate prices and export-related costs make mid-crop buying uneconomic. As a result, very little cocoa has been sold so far, despite the mid-crop traditionally accounting for a significant share of annual domestic processing volumes.
Government officials confirmed that an inter-ministerial committee on raw materials, chaired by the prime minister, is expected to meet shortly to assess the processors’ demands and the broader financial implications for the sector.
Among the measures being requested:
- Reduction or removal of export taxes
- Abolition of the Living Income Differential (LID) — a $400 per tonne premium introduced in 2019 by Ivory Coast and Ghana to support farmer incomes
- A cut in the origin differential, currently set at 125 pounds ($171) per tonne, down from a premium to a discount to help align Ivorian cocoa with competing origins such as Brazil, Ecuador, Nigeria, and Cameroon
Mid-Crop Sales Grind to a Halt
The April–September mid-crop is expected to total around 400,000 tonnes, but exporters say almost no volumes have been sold so far. In a normal year, between 60% and 70% of the mid-crop would already be committed at this stage.
Regulators have acknowledged the difficulty of selling cocoa at current price levels and warned that without policy adjustments, the country may struggle to guarantee producer prices for the new crop starting in April.
Government Under Pressure After Costly Buyback
The situation follows a controversial government decision last month to buy back 200,000 tonnes of unsold cocoa at a cost of more than 280 billion CFA francs (approximately $461 million), a move aimed at preventing a social crisis among farmers.
Ivory Coast has accumulated a cocoa surplus after raising the 2025/26 farmgate price to a record 2,800 CFA francs per kilogram (about $4.65), even as international cocoa prices fell sharply to around $4,000 per tonne.
Exporters Warn of Operational Risks
International exporters and local cooperatives have also refused to buy cocoa at current price levels, citing unviable economics.
Industry executives warn that without swift action, processing activity could slow dramatically, threatening jobs and downstream investment.
“Without relief on taxes and premiums, operations become extremely difficult,” said one Abidjan-based exporter. “When the market turns lower, the current cost structure is simply too heavy.”
All Options on the Table
Government sources say all policy options are being examined, but stress that any decision must balance fiscal stability, farmer incomes, and the competitiveness of Ivorian cocoa on global markets.
For now, the standoff highlights a growing disconnect between domestic pricing policy and international market realities — a tension that could define cocoa market dynamics in the months ahead.
