Cocoa Gridlock in Ivory Coast Sparks Industry Concerns

Key Moments

Supply Standoff Builds in the World’s Top Cocoa Producer

Cocoa beans from Ivory Coast’s main harvest are accumulating in storage as exporters decline to pay the government-mandated farmgate price, creating a bottleneck that could affect chocolate and confectionery supply chains worldwide, according to a report by Reuters.

Cooperatives in the western regions report that buyers are refusing to pay the official 2,800 CFA francs ($5.09) per kg set by the Coffee and Cocoa Council at the start of the 2025/26 season. Exporters contend that a decline in global cocoa prices to their lowest point in more than two years has made beans from Ivory Coast less competitive on the international market.

The deadlock has resulted in significant volumes of unsold beans being stored in locations such as Duekoue, constraining liquidity throughout the supply chain in the world’s largest cocoa-producing country.

For multinational food and beverage groups – including global chocolate manufacturers and ingredient suppliers – the standoff underscores vulnerabilities in cocoa sourcing at a time of continued price swings and elevated scrutiny on environmental, social and governance (ESG) issues.

Price Mismatch Freezes Physical Trade

Ivory Coast’s fixed farmgate pricing framework is intended to protect farmers from sharp price movements. However, when international futures prices fall below levels that allow exporters to profitably buy at the official rate, physical purchases can slow or halt.

This dynamic is now emerging across parts of the country. Cooperative leaders report they cannot move their stock to exporters at the mandated price, which in turn restricts their ability to fully pay farmers.

Some growers say they are being offered between 1,500 and 1,800 CFA francs per kg, significantly under the official level and contrary to regulations, as financially constrained buyers attempt to secure beans at prices that align with current market conditions.

The Coffee and Cocoa Council has responded by launching a program in January to purchase 100,000 metric tons of beans that had remained unsold for weeks. The regulator has recently accelerated these purchases amid concern that beans stored in poor conditions could deteriorate before the April-to-September mid-crop period.

For global processors and manufacturers, this intervention may help avoid immediate quality degradation, but it also brings to light the strain within Ivory Coast’s pricing structure.

Key Figures in the Current Cocoa Bottleneck

Risks for Chocolate and Ingredient Buyers

Ivory Coast contributes roughly 40% of the world’s cocoa production, so any prolonged disruption in main-crop flows carries consequences for grinders, traders and major branded manufacturers that depend on forward contracts and steady physical deliveries.

Even as headline futures prices have eased on weaker demand, tight availability at origin can still interrupt supply chains. If exporters persist in avoiding purchases at the official farmgate price, export flows may slow, triggering logistical congestion and potential short-term supply imbalances for processors.

There is also a quality dimension. Extended storage in inadequate conditions can diminish bean quality, affecting grinding efficiency and flavor profiles – a concern for both premium chocolate producers and industrial buyers.

For manufacturers already managing elevated input cost volatility over the past two years, the situation introduces additional complexity. A widening disconnect between domestic fixed prices and global market levels could lift the risk premium associated with sourcing from Ivory Coast, particularly if regulatory action alters normal trade patterns.

Farmer Cash Flows Under Pressure

The financial strain is most acute at the farm level. With beans building up in warehouses ahead of the mid-crop, some farmers report accepting lower, unofficial prices to secure immediate cash.

For brand owners that have made sustainability and traceability commitments in West Africa, this episode raises renewed questions about income stability. The objective of fixed farmgate pricing is to support farmer livelihoods; when enforcement weakens or market conditions undermine the system, these protections can erode quickly.

The tension also emerges as major chocolate producers face pressure from investors and consumers to reinforce the resilience of their cocoa supply chains, including efforts linked to living income initiatives and deforestation-related sourcing.

Structural Strains in a Volatile Cocoa Market

The current impasse illustrates the structural friction between government-managed pricing frameworks and globally traded commodity markets.

When global demand softens and prices decline, exporter margins are compressed. When prices move sharply higher, manufacturers face rising costs and may curb buying. In both environments, futures market volatility can translate into disruption in producing countries.

For the food and beverage sector, a central question is whether the Coffee and Cocoa Council’s intervention will remain temporary or foreshadow more substantial changes to Ivory Coast’s marketing system.

If unsold inventories continue to accumulate or if bean quality deteriorates, grinders and chocolate manufacturers could face tighter supply in the coming months, even if global benchmarks appear relatively stable.

In a market already influenced by weather risk, regulatory shifts and sustainability expectations, the current bottleneck in Ivory Coast highlights how cocoa supply chains remain highly sensitive to policy choices and pricing misalignments at origin, with repercussions that extend well beyond West Africa.