Ivory Coast Slashes Cocoa Prices Amid Global Market Slump

Ivory Coast has reduced the farmgate price for cocoa farmers by 57% to 1,200 CFA francs per kg to boost sales after global market prices dropped. The government synchronized its strategy with Ghana, starting the mid-crop season earlier from March 1 to enhance the movement of stocks.

In a significant move to bolster cocoa sales, Ivory Coast has announced a slash in the farmgate price paid to its cocoa farmers by 57%, setting it at 1,200 CFA francs ($2.14) per kilogram for the mid-crop season. This decision, revealed by Agriculture Minister Bruno Kone, comes as a response to the plummeting global cocoa prices.

The farmgate price represents the immediate payment farmers receive for their cocoa before any additional value is added through intermediaries or processing. Previously, the main crop price that commenced in October was 2,800 CFA francs per kilogram. This drastic reduction aligns with earlier reports by Reuters forecasting a significant price drop.

Echoing a similar price cut by neighboring Ghana earlier this month, the world's largest cocoa producer has advanced the start of the mid-crop season to March 1 from April 1. This strategy aims to improve sales of the surplus from the main crop, with cocoa arrivals at ports reaching 1.5 million metric tons since the main crop began.

(With inputs from agencies.)