Ivory Coast's Cocoa Strategy: Early Mid-Crop Season & Price Cuts

In an unprecedented move, Ivory Coast is advancing the start of its cocoa mid-crop season and cutting the price paid to farmers. This strategy aims to resolve the surplus stock crisis caused by global price drops, with unsold cocoa piling up at ports and inland.

The Ivory Coast is implementing a novel approach to tackle its current cocoa crisis by launching its mid-crop season earlier than ever before. This decision accompanies a government-sanctioned reduction in the set price paid to farmers, a strategy aimed at accelerating sales.

Sources from both the government and the regulatory board revealed that these measures are a direct response to the country's struggle with excessive cocoa inventory. A global slump in cocoa prices has rendered Ivorian cocoa less competitive, leading to a backlog of unsold cocoa beans at ports and logistical chokepoints within the country.

Under the new system, cocoa harvested next month will be categorized as mid-crop, rather than main crop, with the new price set between 800 and 1,000 CFA francs per kilogram. This reflects a significant reduction from the main crop price of 2,800 CFA francs.

(With inputs from agencies.)