What's Happening?
The government of Ivory Coast, the world's leading cocoa producer, has announced plans to purchase unsold cocoa stocks to support farmers as global cocoa prices have significantly decreased. The decision comes after multinational buyers refused to purchase the remaining
15% of the cocoa harvest, leading to a buildup of unsold stocks. The government aims to ensure that farmers are paid and that exports continue despite the price drop. The Coffee and Cocoa Council had previously set a record price of approximately $5,000 per metric ton in October 2025, but prices have since fallen to around $4,630 per metric ton. The government's intervention is intended to stabilize the market and provide financial security to farmers, although some stakeholders remain skeptical about the guarantees offered.
Why It's Important?
This development is crucial for the global cocoa market and the economy of Ivory Coast, which produces nearly half of the world's cocoa supply. The government's intervention is aimed at protecting farmers from the volatility of global market prices, ensuring their livelihoods are not jeopardized. However, the skepticism from stakeholders highlights concerns about the effectiveness of government guarantees and the potential for future market instability. The situation underscores the challenges faced by agricultural producers in developing countries who are heavily reliant on global commodity markets.
What's Next?
The new purchase price for the mid-crop season is expected to be announced on April 1, and it is anticipated to be significantly lower. This could impact the income of cocoa farmers and the overall economic stability of the region. The government's ability to manage the situation and provide adequate support to farmers will be critical in maintaining the country's position in the global cocoa market.
