The article examines the factors impacting the decline in cocoa prices in 2024, emphasizing the role of market regulation and the effects on farmers in key producing countries. Cocoa trading in Ivory Coast and Ghana is not fully free-market and is regulated by government-appointed bodies that control about 80% of the harvest, selling it to traders worldwide in advance and fixing a price for farmers at the start of the season. This system has resulted in issues as the price set does not respond to the fluctuating global market, and farmers have been adversely affected by the low prices globally.

The regulatory framework has led to a backlog of unsold cocoa stocks in major producing countries, primarily due to an overproduction that exceeds global demand, causing warehouses to fill up and further pushing down prices. The implications for farmers are severe, as they face reduced incomes and increased pressure to sustain their livelihoods amid the shifting market dynamics. The established pricing system, originally designed to protect farmers, now seems counterproductive as it does not account for variable market conditions.

The article highlights a growing crisis that could potentially destabilize the cocoa industry, which is crucial for the economies of Ivory Coast and Ghana. For the farmers, the current circumstances create an urgent need for a reevaluation of the trading and pricing mechanisms to better align with global market trends and enhance their economic sustainability. Without intervention and adaptation, the once-thriving cocoa industry may face long-term challenges, impacting not only the farmers but also the economies of the countries reliant on this cash crop.