Ivory Coast Weighs Reform of Cocoa Marketing System Amid Price Collapse and Rising Stocks
Ivory Coast is examining possible reforms to its cocoa marketing framework in an effort to deal with mounting supplies and falling global prices, according to two government officials familiar with the discussions.
Authorities are considering adjustments that would bring the price paid to farmers more closely in line with international market levels.
The debate follows a steep drop in global cocoa prices, which has disrupted cocoa sales in the country and left large volumes of beans unsold in warehouses across the West African producer.
After surging to record highs in 2024, global cocoa futures have dropped sharply, losing roughly three-quarters of their value and currently trading near $3,300 per tonne.
Ivory Coast set its farmgate price last season when international prices were still extremely high. As a result, the fixed price paid to farmers now sits above current global market levels, making exports less competitive and discouraging international buyers.
The slowdown in purchases has contributed to a buildup of stocks. In response, the government has stepped in to buy part of the surplus, committing more than 500 billion CFA francs (about $892 million) to purchase beans from farmers.
“We already have a clear idea of the direction we want to take regarding both the internal and external organisation of the cocoa sector,” one source said. “The system needs to be more responsive and more realistic in relation to international market conditions.”
Ivory Coast abandoned a decades-old state purchasing system during the 2012/13 season, replacing it with a structure that relies on forward sales. Under that system, cocoa is sold ahead of the harvest and the resulting revenue is used to determine the guaranteed farmgate price announced at the start of the season in October.
Officials now say the framework may need to evolve in order to better cope with rapid changes in global cocoa markets.
“We need a system that is more flexible and able to react faster,” another government source said, without providing further details on how potential reforms would work.
Some industry participants believe the country should reduce its dependence on multinational trading houses that currently dominate cocoa purchases and exports.
Ismael Kone, a member of the advisory board of the Ivorian regulator and chief executive of exporter Ecorgine, said reforms should focus on enabling direct sales to chocolate manufacturers and strengthening domestic exporters.
“The goal would be twofold: allow cocoa to be sold directly to chocolate makers and develop stronger local exporting companies capable of competing with multinational traders,” Kone said.
However, some analysts caution that international trading firms remain central to the logistics of the global cocoa trade.
Ted George, a commodities specialist at Kleos Advisory, noted that major traders play a key role in moving beans from West Africa to processing facilities in Europe and North America, making them difficult to replace.
A veteran cocoa trader and consultant, who asked not to be named, also expressed doubt that structural reforms would significantly change market dynamics.
“In the end the beans go to chocolate manufacturers,” the consultant said. “Whether they are sold through traders or directly to industry players doesn’t necessarily change overall demand.”
According to the consultant, the cocoa market could eventually stabilise if chocolate demand begins to recover, which would help absorb some of the surplus currently weighing on prices.
“The situation may improve once chocolate consumption starts to rebound,” the consultant added.
