Ivory Coast is considering a reform of its cocoa marketing system that would make government-set farmer prices more responsive to international price levels, according to two government sources cited by Reuters. The move follows a period in which global cocoa prices fell sharply from record highs, leaving traders facing steep losses on purchases made at the country’s fixed farmer price, which was set above prevailing world market levels. Traders stopped buying as a result, leading to a build-up of unsold beans both inland and at ports.

To address the situation, the government pledged to purchase the unsold cocoa stocks at a cost of more than 500 billion CFA francs (approximately USD 892 million). The current system, which involves selling the anticipated crop forward a year in advance and setting a fixed price for farmers at the start of the season, was introduced in 2012/13 to shield growers from volatile global prices.

“We need to be more agile and responsive,” one government source told Reuters, without specifying how a revised system would work in practice.

The wider backdrop for cocoa markets remains one of demand adjustment. Bloomberg Intelligence notes that cocoa futures are expected to remain under pressure, with the recent decline driven by demand reduction as consumers and manufacturers adjust to the price levels seen in 2024/25. A surplus is expected through 2027, though structural supply risks are seen capping the downside, keeping prices above historical norms.

Certified exchange bean stocks in London stood at 40,020 mt as of March 19, while ICE New York exchange bean stocks increased to approximately 151,000 mt from 143,000 mt in the previous report. In New York, May cocoa futures declined USD 42 (1.3%) versus March 13, while London’s May contract was nearly unchanged, up GBP 3 (0.1%).

Major chocolate manufacturers continue to navigate the aftermath of elevated cocoa costs. Lindt reported organic sales growth of 12.4% in 2025, driven largely by price increases of 19%, partly offset by a volume and mix decline of 6.6%. For 2026, the company has guided for 4โ€“6% organic growth, below its 6โ€“8% long-term target, citing consumer resistance to price increases and geopolitical uncertainty. Mondelฤ“z, meanwhile, has indicated it is unlikely to benefit materially from lower cocoa spot prices until 2027 due to hedges already in place, and is adjusting its product range by introducing more filled products that require less chocolate.

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