Ivory Coast, Ghana Join Forces to Stabilize Cocoa Market

Key Moments

Regional Leaders Coordinate Response to Cocoa Market Strains

The governments of Ivory Coast and Ghana have pledged to deepen collaboration and raise farmer incomes as they confront severe economic and environmental pressures on the cocoa sector. The two neighboring countries recently convened a joint summit focused on the outlook for an industry that remains central to their export earnings and supplies around two thirds of the cocoa used by global confectionery and chocolate manufacturers.

Ivory Coast President Alessane Ouattara and John Mahama met to shape a coordinated economic framework for the cocoa market following extreme price movements. According to the discussion, cocoa prices on futures markets fell from above $12,000 per tonne to about $3,000 earlier this year. More recently, concerns around anticipated el Nino weather patterns have driven prices back up to approximately $6,000 per tonne over the past few weeks.

In reaction to these swings, both countries substantially reduced farm-gate prices paid to cocoa farmers. Ghana lowered prices by 40%, while Ivory Coast cut them by 60%, a development that has heightened anxiety among labor unions that producers are now even further away from achieving a living wage through cocoa cultivation.

Conference Spotlight on a Deepening Structural Crisis

The challenges facing cocoa communities and the broader value chain are set to feature at the next World Confectionery Conference in London on 10 September at the America Square venue. The organizer noted that an early bird visitor rate would be maintained for one week only until 14 July via the event’s dedicated website.

Industry observers have described a mounting crisis driven by entrenched poverty in cocoa-growing regions, persistent underinvestment in infrastructure, and weaknesses across the cocoa system itself. The sector has also been hit by adverse weather conditions and the spread of crop diseases, including swollen shoot virus, which has damaged a significant share of output and further strained producers in Ivory Coast and Ghana.

Cocobod Funding Flows and Farmer Support

Against this backdrop, Ghana’s state-backed cocoa authority, Cocobod, reported an additional financial injection aimed at easing pressures on farmers. Over the past week, it announced the release of GH¢2.6 billion Cedis (stated as $228,000 US dollars) to Licensed Buying Companies operating in the cocoa chain to support producer payments.

Cocobod also stated that, since the start of the 2025/26 crop season, it has disbursed GH¢ 34,523,447,255.64 to Licensed Buying Companies (LBCs) for onward payment to agricultural workers in the sector.

Despite these funding measures, uncertainty persists around whether farm-gate prices negotiated with producers during last year’s higher price environment will be honored. This remains a key point of concern for stakeholders. Both countries had planned to participate in this year’s Chocoa event in Amsterdam, but senior representatives withdrew at short notice, citing the unresolved pricing situation.

Cocobod’s Strategic Position and Policy Foundations

Cocobod emphasized that farmers will sit at the center of its future strategy, particularly in relation to governance and value distribution along the cocoa chain. Its stance builds on the Ivory Coast Abidjan Declaration of March 26, 2018, which underpins formal cooperation between the two states in cocoa.

During their latest joint session, the heads of state reiterated the importance of cocoa to their populations and highlighted the work of the Côte d’Ivoire-Ghana Cocoa Initiative (CIGCI), which launched the cross-border Living Income Differential (LID). They also pointed to progress in aligning marketing practices and producer price announcements, introducing traceability systems, rolling out the African Regional Standards for Sustainable Cocoa (ARS-1000), and coordinating research activities to tackle Cocoa Swollen Shoot Virus Disease (CSSVD).

Persistent Risks: Volatility, Climate, and Compliance Pressures

Despite these initiatives, the two governments acknowledged that the sector still faces major headwinds. These include ongoing price volatility, the expansion of illegal gold mining, the impact of climate change, the emergence of cocoa alternatives, and regulatory pressures linked to forthcoming EUDR deforestation rules and corporate due diligence obligations targeting child labor and other social concerns.

They further stressed that, although Africa produces 80% of global cocoa, the continent secures only a small share of the total value generated along international supply chains.

New Commitments on Pricing, Processing, and Regional Expansion

In response, Ivory Coast and Ghana agreed to align their farm-gate pricing policies in an effort to bolster farmer incomes. The objective is to ensure fair and decent compensation for producers and to place them more centrally within the cocoa value chain.

They also outlined additional priorities, including stronger scientific collaboration on disease management and a push to scale up domestic cocoa processing capacity. The aim is to capture more value locally, increase profitability, and create more employment opportunities within the region.

Furthermore, the two governments committed to extending the Côte d’Ivoire-Ghana Cocoa Initiative to other African countries. By broadening participation, they intend to strengthen their collective influence on international markets and reinforce the bargaining power of African cocoa producers.