Ivory Coast Shifts Cocoa Strategy Amid Market Slump

Ivory Coast plans to advance the cocoa mid-crop season to reduce farmer payments amidst a surplus crisis due to global price drops. The changes are akin to Ghana's recent adjustments, aiming to increase sales and stabilize the sector. They will take effect in March 2026.

Ivory Coast is set to overhaul its cocoa industry strategy by bringing forward the start of the mid-crop season for the first time. This decision, reported by government and regulator sources, aims to lower farmer payments to stimulate sales, addressing a pressing surplus crisis following a drop in global cocoa prices.

Following Ghana's lead, Ivory Coast will classify cocoa produced next month as mid-crop, reducing the price paid to farmers to between 800 and 1,000 CFA francs per kg, substantially below the main crop rate. This strategic move seeks to manage unsold stock evidenced by piles of cocoa at ports and inland.

In a bid to support farmers financially, the Coffee and Cocoa Council announced a $500 million initiative to buy unsold cocoa. The government is exploring additional measures to stabilize the sector as these changes are slated for implementation in March 2026 after gaining approval from an interministerial committee.

(With inputs from agencies.)