Ivory Coast is considering reducing the guaranteed farm gate price paid to its cocoa farmers to align with Ghana, as the world’s two largest cocoa producers grapple with a deepening crisis in the sector, according to a Reuters report.
The report said senior Ivorian officials indicated that all options are under consideration as the government debates whether to follow Ghana’s recent decision to cut its producer price by 28.6% for the remainder of the 2025/2026 main crop season.
Ghana announced the reduction as part of efforts to adjust to the sharp decline in global cocoa prices, in coordination with Abidjan.
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The discussions between Ghana and the Ivory Coast, as well as internal deliberations within the Ivorian government, had not previously been made public, Reuters reported.
Under the Ivory Coast–Ghana Cocoa Initiative (ICCIG), the two countries — which together account for about 60% of global cocoa output — have been working closely since the onset of the crisis.
“We have put all options on the table, and discussions are progressing well. Courageous and realistic decisions will be taken soon,” a senior Ivorian official told Reuters on condition of anonymity because they are not authorised to speak publicly on the matter.
Another official noted that cocoa prices have fallen by nearly 50% in recent months, leaving the government with limited options.
“We must think about the survival of the cocoa sector in the Ivory Coast. We need to act; changes are underway,” the source said, without providing further details.
An inter-ministerial committee has reportedly met to assess the situation, and a decision could be announced soon. A spokesperson for the Ivorian government did not respond to Reuters’ request for comment.
Alex Assanvo, Executive Secretary of ICCIG, said both countries are adapting to the sudden market downturn and have taken measures to prevent long-term damage to the sector. He disclosed that the trading desks of the Ivory Coast’s Coffee and Cocoa Council (CCC) and Ghana’s COCOBOD remain in constant communication.
Assanvo also defended the Living Income Differential (LID) — introduced in 2019 to improve farmers’ incomes — arguing that current market volatility highlights its importance.
ICCIG is preparing a high-level meeting between the two countries to strengthen coordination as farmers in both Ghana and the Ivory Coast face increasing financial pressure.
“The organisation remains mobilised to coordinate policies in both countries,” Assanvo said, adding that stakeholders across the sector will be convened to review market trends and propose improvements to price-stabilisation mechanisms.
Exporters and buyers expect the Ivory Coast to announce a price cut soon, with some suggesting it is now a matter of timing.
“The country is resisting, but for how long? I don’t see Ivory Coast doing something different from Ghana,” the head of an Abidjan-based export company told Reuters.
Reuters