Ivory Coast Considers Cocoa Market Reform Amid Surplus

Ivory Coast, the world’s largest cocoa producer, is weighing reforms to its marketing system as the country struggles with a major surplus of beans. Government sources say the plan would align farmer prices more closely with international market levels, making the system more responsive to global price swings.

The move comes after cocoa futures, which nearly tripled to record highs in 2024, lost three quarters of their value and now trade at about $3,300 per ton. The sharp fall triggered a sales crisis, leaving unsold beans piled up inland and at ports.

Last October, Ivory Coast set farmer prices well above world market rates. Traders faced steep losses and stopped buying, leading to the stockpile. To support farmers, the government pledged to purchase unsold beans at a cost of more than 500 billion CFA francs, or about $892 million.

Officials say reforms are needed to make the system more agile. The country abandoned spot buying in 2012, switching to forward sales that set fixed farmer prices at the start of each season. But with today’s volatile markets, sources admit the current system is struggling. “We need to be more responsive and realistic in an extremely volatile market,” one official said.

Industry voices are divided on the way forward. Ismael Kone, a member of the regulator’s advisory board, argues that Ivory Coast should reduce its dependence on multinational companies, which control 80 percent of cocoa exports. He suggests selling directly to chocolate makers and strengthening local exporters to create competition.

Others disagree. Commodities expert Tedd George says international traders remain essential for moving beans from farms to chocolate makers in Europe and North America. Replacing them, he warns, would be difficult.

Some industry veterans are skeptical that reforms will succeed. One trader told Reuters that even if changes are made, they may not solve the underlying problem: weak global demand for chocolate. “The pizza pie is only so big,” he said, adding that consumption must rise for the crisis to ease.

Analysts caution that unless demand rebounds strongly, Ivory Coast may continue to face sluggish sales despite reforms. For now, the government is under pressure to balance farmer incomes with the realities of a volatile global market.