Ivory Coast Plans 39% Cocoa Price Rise Amid Production Decline Concerns

Côte d'Ivoire plans to raise its farmgate cocoa price significantly for the 2025-2026 season, with proposals ranging from 2,500 to 2,800 CFA francs per kilogram, marking a record high and representing a 39% increase to support farmers amid challenging market conditions. This price hike aims to keep producers at the center of policy and to compete with neighboring Ghana's slightly higher cocoa prices, which recently increased to about $5 per kilogram. Despite the increase, concerns persist about potential cross-border smuggling due to poverty-level wages of agricultural workers and currency exchange issues affecting actual income. Cocoa production is expected to decline for the third consecutive year, influenced by poor weather and the spread of swollen shoot disease, with exporters forecasting lower output and quality for the main crop. The cocoa sector remains vital to Côte d'Ivoire's economy, contributing around 20% of GDP and 40% of export earnings, underscoring the importance of stabilizing farmer incomes and market conditions. Market prices on futures exchanges have shown some stabilization after previous volatility, but uncertainty remains due to recent market collapses and challenging sales conditions.