Ivory Coast is evaluating the possibility of lowering the price it pays farmers for cocoa beans, reflecting a similar move by neighboring Ghana. According to reports from government sources, the Ivorian government is considering this price cut to address the challenges within the cocoa sector, which has been adversely affected by a significant drop in global cocoa prices. Ghana announced a price reduction of nearly 30% last week, bringing the price down to about $3,700 per tonne, as part of efforts to stabilize its struggling cocoa market.

The cocoa industry is critical to both Ivory Coast and Ghana, which together account for approximately 60% of the world's cocoa output. The decline in cocoa prices has created considerable financial strain, leading to issues such as payment delays to farmers and accumulation of unsold stock by the cocoa purchase agency in Ivory Coast. Given that the farmgate price for cocoa is typically established at the start of the harvest season, the potential price cut raises concerns about the financial wellbeing of cocoa farmers who rely on this income.

The decision by Ivory Coast to follow Ghana's lead could have broader implications for the cocoa industry, influencing pricing strategies and potentially affecting global cocoa supply. As both nations grapple with falling prices and the economic pressures on farmers, the outcome of the inter-ministerial discussions in Ivory Coast will be closely monitored by stakeholders throughout the cocoa supply chain.