Full Breakdown
Major Cuts in Cocoa Farmer Pay in Ivory Coast Amid Global Price Decline
3/19/2026, 1:49:22 PM
Overview of the Cocoa Price Crisis
The government of Ivory Coast has confirmed a significant reduction in cocoa farmer pay, announcing a 60% cut in response to a dramatic decline in international cocoa prices. This decision follows a similar move by neighboring Ghana, which reduced its farmer payments by 30% last month. The price of cocoa on global markets has plummeted from over $12,000 per tonne at the start of 2025 to approximately $3,000 in recent weeks, prompting concerns among farming organizations regarding the sustainability of their livelihoods.
Government Response and Justification
Bruno Nabagné Kone, the Minister of Agriculture for Ivory Coast, defended the government's actions, stating that the administration has historically provided fair compensation to farmers. He noted that climate change has adversely affected cocoa crops, necessitating adjustments in pricing. Kone emphasized that despite the current cuts, the government has consistently aimed to award farmers a significant portion of the Cost and Freight (CAF) price, which has evolved from 700 CFA Francs per kilogram in 2012 to a peak of 2800 CFA Francs in 2025-2026.
Impact on Farmers and Industry
The drastic pay cuts have raised alarms among cocoa farmers, who are now facing compensation levels that fall below World Bank and UN poverty thresholds. The Cocoa and Coffee Council of Ivory Coast has indicated that all cocoa purchasing operations will now be conducted through official channels to ensure accurate payments to farmers. However, the financial distress has already led some farmers in Cameroon to abandon cocoa cultivation in favor of planting food crops, raising concerns about long-term impacts on cocoa production in the region.
Broader Market Trends and Challenges
The cocoa market is currently experiencing a surplus, with analysts predicting a global production excess of approximately 186,000 tonnes for the 2025-2026 season. This oversupply, coupled with weakened demand due to high cocoa prices in 2024, has contributed to the price decline. In Cameroon, cocoa prices have dropped by as much as 75%, with farm-gate prices falling to between 1,100 and 1,200 CFA Francs per kilogram. The liberalized market in Cameroon has left farmers more vulnerable to international price fluctuations compared to their counterparts in Ivory Coast, where a government-stabilized pricing system has provided some protection.
Criticism and Future Considerations
Critics, including Henri Kouam from the Cameroon Economic Policy Institute, have urged governments to take proactive measures to support farmers during this downturn. Suggestions include the establishment of a Price Stabilisation Reserve and accelerating the disbursement of subsidies to help farmers manage input costs. Additionally, there are calls for increased local processing capacity to mitigate exposure to volatile raw bean markets.
Verbatim Quotes
- “Kone said: “The will of President of the Republic, SEM Alassane Ouattara, to award at least 60% of the CAF prize to producers, from 2012 to 2025, has always been respected.” — Bruno Nabagné Kone, Minister of Agriculture
The ongoing challenges in the cocoa sector highlight the need for strategic interventions to ensure the sustainability of farming communities in Ivory Coast and beyond.
