Ivory Coast – Ivory Coast is considering a reduction in the guaranteed farm gate price for cocoa, potentially aligning with a recent cut by neighboring Ghana, as the world’s largest cocoa producers grapple with a severe market downturn, two government sources told Reuters on February 18, 2026.
Ghana has already cut its farm gate price by 28.6 percent for the remainder of the 2025/2026 main crop, and Ivory Coast officials are evaluating similar measures in consultation with Ghana through the Ivory Coast–Ghana Cocoa Initiative, which coordinates policies between the two countries. Both nations account for about 60% of global cocoa output, giving their decisions significant influence on international markets.
“The continued price fall, which has seen cocoa drop by nearly 50% in recent months, leaves the government with little room to maneuver,” said one senior Ivorian official, speaking anonymously. An inter-ministerial committee has been reviewing options, with a decision expected soon.
ICCIG Executive Secretary Alex Assanvo said the initiative is focused on preventing structural damage to the cocoa sector, maintaining coordination between Ivory Coast’s Coffee and Cocoa Council (CCC) and Ghana’s COCOBOD, and supporting the Living Income Differential (LID) framework introduced in 2019 to boost farmer earnings. Assanvo emphasized that the organization remains mobilized to coordinate policies and review price-stabilization mechanisms to mitigate financial pressure on farmers.
The potential adjustment underscores the urgency facing West Africa’s cocoa producers as plunging prices threaten sector sustainability, and signals continued collaboration between Abidjan and Accra to stabilize the global cocoa market.
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Ivory Coast and Ghana are the world’s largest cocoa producers, together accounting for roughly 60% of global output. Cocoa is a critical export commodity for both economies, providing livelihoods for millions of smallholder farmers and contributing significantly to foreign exchange earnings. Any shifts in farm gate pricing or sector policy have broad implications for global chocolate markets.
Since the introduction of the Living Income Differential (LID) in 2019, both countries have sought to ensure that cocoa farmers earn a sustainable income above market rates. The LID sets a premium above the standard market price for cocoa sold for export, helping cushion farmers against volatility. However, the sector has recently faced sharp price declines, with international cocoa prices falling nearly 50 percent in recent months due to global supply-demand imbalances, weaker chocolate demand, and speculative trading.
In response, Ghana has already implemented a 28.6 percent cut in its farm gate price for the 2025/2026 main crop. Ivory Coast is now considering a similar measure, with close coordination through the Ivory Coast–Ghana Cocoa Initiative (ICCIG), which monitors market developments, aligns pricing policies, and strengthens sector resilience. ICCIG also facilitates dialogue between key institutions, such as Ivory Coast’s Coffee and Cocoa Council (CCC) and Ghana’s COCOBOD, to avoid destabilizing unilateral decisions.
The coordination reflects a broader strategy to protect the cocoa sector from structural damage, maintain farmer livelihoods, and stabilize global cocoa supply. By aligning policies, the two countries aim to mitigate financial pressure on farmers, preserve export competitiveness, and maintain international market confidence, while continuing to assess the effectiveness of the LID and other price-stabilization mechanisms in a volatile market environment.
This period of market adjustment highlights the fragility of the global cocoa market, the importance of policy coordination between the region’s top producers, and the challenges of balancing farmer income, export revenue, and global price trends.
