Côte d’Ivoire raised fixed farmgate price paid to cocoa farmers to a record high, in a move that will lead to a surge in chocolate prices globally.
Higher farmgate prices mean that chocolate manufacturers have to pay more for raw cocoa beans.
Côte d’Ivoire is the world’s largest producer of cocoa, accounting for over 40% of the global cocoa production. In the 2022/2023 growing season, Ivory Coast produced approximately 2.24 million metric tons of cocoa beans. This significant output has maintained its top position in global cocoa production for several decades.
However, climate conditions and diseases that hit cocoa trees sent prices skyrocketing.
The Ivorian Agriculture minister announced Monday that cocoa farmgate price will now be at 1,800 CFA francs ($3.09) per kg for the main crop, up from 1000 CFA francs.
The 2023/24 season was marked by a 25% drop in cocoa production in West Africa, Ivorian agriculture minister Kobenan Kouassi Adjoumani said.
Consequently, the price for cocoa on the futures exchange hit an all-time high of over US$10,000 a ton in the first quarter of this year.