The government of Tanzania has unveiled a comprehensive strategy to stabilise and revive its cocoa industry after a dramatic fall in prices that has deeply affected farmers and stakeholders in the sector. This move comes amid a period of global volatility in cocoa markets, where prices have plunged sharply in recent months due to shifts in supply and demand dynamics, particularly among the world’s leading producers such as Ivory Coast and Ghana.
At recent auctions, Tanzanian cocoa prices, which once hovered between 32,000 and 36,000 Tanzanian shillings per kilogram, fell to as low as about 5,540 shillings, significantly undercutting the indicative price benchmark of 10,000 shillings previously seen. The sharp decline has alarmed growers in key cocoa regions such as Mbeya, Morogoro, Tanga and Songwe, with farmers warning that continuing low prices could undermine livelihoods and discourage production.
Authorities acknowledge that the price slump largely reflects broader global market factors. In late 2024 and 2025, production disruptions in Ivory Coast and Ghana initially constrained supply, prompting international buyers to stockpile beans in anticipation of shortages. However, as both countries recovered output faster than expected, stockpiles grew and demand lagged, contributing to the present downturn in prices across regional markets.
To address the crisis and chart a path toward a more resilient cocoa sector, the government — in coordination with the Cereals and Other Produce Regulatory Authority, has adopted a five point plan of strategic interventions. A central pillar of the strategy is to significantly boost cocoa production from the relatively modest 17,000 tonnes recorded in the 2025 season to an ambitious 80,000 tonnes by 2030. Achieving this goal will require improved access to quality planting materials, expanded cultivation areas and stronger support for smallholder farmers as they work to rejuvenate ageing cocoa trees, many of which are now well beyond their most productive years.
Another key element of Tanzania’s plan is a concerted effort to enhance the quality of domestically produced cocoa. Improved drying and processing facilities are expected to help Tanzanian cocoa meet high international standards and attract better prices on world markets. To this end, the government plans to build seven new cocoa drying facilities before June, with the number expected to rise to 20 over the next financial year. These facilities will also help ensure compliance with environmental standards, including stringent European Union regulations aimed at preventing deforestation.
Building on quality enhancements, the government is also promoting organic farming practices, which can broaden market appeal and help Tanzanian cocoa qualify for premium segments. Organic certification can open doors to specialised buyers willing to pay higher prices for sustainably produced beans, potentially creating more opportunities for farmers to earn better returns on their crops.
A further priority is the expansion of contract farming arrangements that link producers with processors and buyers under agreed terms. Similar models have worked in other commodity sectors by reducing market risk and improving access to reliable demand. Farmer organisations and private sector partners are expected to play significant roles in establishing and managing these contracts.
Promoting local value addition is another cornerstone of the revival strategy. Government officials see expanding domestic processing capabilities, including the construction of processing plants such as the facility already under way in Rungwe District, as crucial to capturing more value within the country rather than exporting raw beans alone. A second planned processing facility in Kyela is also expected to bolster local industry and create jobs in rural areas.
Despite these plans, some farmers warn that the current slump has already inflicted damage on livelihoods. Many producers have aged trees past peak productivity, and low prices reduce the incentive to invest in replanting and long term improvements. Farmers have urged faster implementation of processing facilities and support measures, emphasising that local processing could enhance price resilience and decrease dependence on fluctuating world markets.
The global cocoa market remains challenging. Prices on international exchanges have dropped sharply from record highs in 2024 and early 2025, with global output in the world’s largest producing countries outpacing changes in demand and leaving exporters with significant stockpiles. In response, major producing countries like Ivory Coast have adjusted producer pricing policies; recent reports indicate reductions in farmgate prices in West Africa in a bid to stimulate sales and clear excess inventories.
Efforts in Ivory Coast to cut prices aim to ease pressure from unsold stocks that have built up as global prices fell roughly 50 percent in the current season. At the same time, the Ivorian government has pledged to continue purchasing cocoa inventory at guaranteed prices to support farmers and avoid labour unrest, even as it considers adjusting price policies for upcoming harvests.
Tanzania’s revival strategy recognises that addressing price volatility will require long term investments in production capacity, quality improvement and processing infrastructure. By aligning agricultural policy with market realities and reinforcing domestic value chains, the government hopes to create a more sustainable cocoa sector that can withstand global shocks while offering fair incomes to producers in the years ahead.
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