The Council of African Cocoa Farmers and Agribusiness Associations (COFAAA) has raised alarm over the inadequacy of current cocoa pricing models, claiming they do not effectively shield farmers from the volatility of international cocoa prices. According to COFAAA's Global President, Adeola Adegoke, these models, intended to stabilize prices for cocoa producers, instead adjust too quickly to align with the fluctuating global market, thereby undermining the financial security of farmers. This inadequacy has become increasingly apparent as farmers find themselves at the mercy of global pricing trends that can change rapidly and unpredictably.

In recent years, despite a notable spike in cocoa prices, particularly in early 2024 when prices reached about $12,000 per metric tonne, the anticipated benefits did not fully reach farmers, especially those in major producing countries like Côte d’Ivoire and Ghana. COFAAA pointed out that the pricing frameworks in place—whether semi-regulated or fully regulated—are failing to ensure that farmers retain a stable income. This discrepancy indicates a significant weakness in the current agricultural economic structures, which are supposed to serve the interests of the very producers who cultivate these valuable crops.

The implications of these findings are serious, highlighting a systemic need for reform in how cocoa pricing is structured and managed in Africa. As the downturn in cocoa prices over the past year has impacted all origin countries, it raises concerns over the sustainability of cocoa farming as a livelihood. If farmers continue to face these challenges without reform, the future of cocoa production—and indeed the economic stability of millions of producers—could be at risk.