Ivory Coast's Cocoa Market Overhaul: Navigating Global Challenges

Ivory Coast, the world's top cocoa producer, is set to reform its marketing system to better align farmer prices with global market rates, according to government sources. This comes as a response to a sharp dip in global cocoa prices, which has led to unsold stocks piling up, both inland and at the ports.

Following a meteoric rise to record levels in 2024, cocoa prices have plunged, losing three-quarters of their value due to a global surplus. The fixed price set by the government for cocoa farmers last October was above current market levels, resulting in losses for global traders who consequently halted purchases, exacerbating the stockpile issue.

The government aims to be more agile and reduce its dependence on multinational companies controlling the majority of cocoa purchases. Critics, however, argue that proposed reforms may not yield significant improvements unless there's a rebound in chocolate demand, which remains uncertain.