Ivory Coast, recognized as the premier cocoa exporter worldwide, is poised to elevate its official cocoa farmgate price from 1,000 CFA to 1,500 CFA francs ($2.47) per kg starting Tuesday. This decision came after President Allassane Ouattara initially approved a price range proposal of 1,100 to 1,200 CFA francs per kg, only to later demand an increase to further support local farmers.
The surge in cocoa prices, which have more than tripled over the past year due to diseases and adverse weather conditions, has led to a global market deficit for the third year in a row. Despite these challenges, the official farmgate price in Ivory Coast, a dominant player in the cocoa industry, has been slow to adjust to these market dynamics.
The country’s cocoa is integral to the operations of major global companies such as Hershey, Nestle, Mondelez, and Barry Callebaut. These corporations rely on Ivory Coast’s cocoa for their products, highlighting the country’s significance on the international stage.
In a notable move in 2022, Ivory Coast, alongside Ghana, withdrew from industry meetings in Brussels in response to a dispute over cocoa pricing, signaling their significant influence in global cocoa markets.
Nearly six million individuals in Ivory Coast depend on the cocoa industry, making this price increase a vital economic development for the nation. This sector not only provides livelihoods for millions but also plays a crucial role in the economic stability and growth of the country.