Cocoa Crisis: A Bitter Harvest for Ivory Coast and Ghana

Ivory Coast and Ghana, the top cocoa producers, struggle with falling cocoa prices and excess supply, causing financial difficulties for farmers. With global price plunges and decreased demand, the governments have taken measures to mitigate the impact on their economies and livelihoods.

Amid surplus harvests and diminished demand, leading cocoa producers Ivory Coast and Ghana face significant challenges in the cocoa market. These nations have struggled to sell their beans and pay farmers as global cocoa prices drop.

The cocoa sectors in both countries operate through government-appointed regulators, who pre-sell most of their annual cocoa output to global traders at a fixed price. This year, however, steep price plunges in the futures market have left traders hesitant, causing unsold stocks to accumulate in these nations.

In response, Ivory Coast has launched a program to purchase unsold stocks directly from farmers, while Ghana has cut fixed prices to encourage international sales. As cocoa forms a major part of both countries' economies, these measures aim to alleviate the crises afflicting local farmers and bolster the industry.

(With inputs from agencies.)