Disruption across the cocoa sectors of Ivory Coast and Ghana is intensifying pressure on farmers, with unsold beans, delayed payments and falling farmgate prices destabilising the market.
Both countries rely on marketing systems in which regulators sell most of the crop forward and set fixed prices for farmers before the season begins. The sharp decline in global cocoa prices after last year’s rally has left those fixed prices far above current market levels, complicating sales and financing throughout the supply chain.
In Ivory Coast, exporters and authorities have moved to restart mid-crop contract purchases after limited volumes were sold earlier in the season. The agreement has already unlocked purchases of more than 200,000 tonnes of beans. Cocoa produced in March will now be classified as mid crop, with farmer prices significantly below those paid for the main crop.
Large volumes of beans have accumulated in warehouses as exporters struggle to place cargoes at current market prices. The government is also considering further adjustments to farmgate pricing in an effort to restore sales.
Financial stress is equally visible in Ghana. Licensed cocoa buyers have accumulated debts of up to $750 million to banks, while many farmers are still waiting to receive payment for beans delivered earlier in the season. Authorities have reduced the guaranteed producer price and are working on financing measures to stabilise the sector.
The market backdrop remains uncertain. Cocoa futures recovered modestly last week after a prolonged decline, but higher energy prices and weaker global economic growth linked to the Middle East conflict could weigh on chocolate confectionery demand in the months ahead.
For now, the most immediate strain is being felt across West Africa’s cocoa sector, where farmers and buyers are navigating one of the most difficult market environments in recent years.
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