Africa’s top cocoa producer raises farmers’ hopes with historic price hike

Ivory Coast, the world’s leading cocoa producer, has raised its guaranteed farm gate price to a record $4.50 per kilogram, a move that could significantly boost farmer incomes and shape the political mood ahead of the country’s October 25 presidential election.

• Ivory Coast raises its farm gate cocoa price to a record $4.50 per kilogram, up from $3.40, ahead of the October 25 presidential election.
• President Alassane Ouattara says the move ensures that hardworking farmers “benefit from the fruits of their labor.”
• The cocoa sector supports approximately five million Ivorians, accounting for 14% of the country’s GDP and 40% of the global supply.
• The price surge is expected to influence cocoa policies in Ghana and Nigeria, as regional governments seek to maintain competitiveness.

President Alassane Ouattara, who is seeking a fourth term, announced the increase from $3.40 earlier this year, marking a substantial rise in response to surging global cocoa prices in 2024.

“This is a record price,” Ouattara declared, emphasising the government’s commitment to ensuring that “those who work hard in our fields benefit from the fruits of their labor.”

For farmers across the West African nation, the announcement represents both relief and renewed optimism.

Edmond M’Bra, a cocoa farmer from central Ivory Coast, expressed gratitude: “We are very happy; producers have been suffering for years.”

Another farmer, Berlem Oumarou, from the southern region, highlighted the impact on rural livelihoods, saying, “We can send our children to school and sleep peacefully.”

Cocoa is not just a commodity for the Ivory Coast; it is the lifeblood of its economy. The sector contributes 14% of the country’s GDP, accounts for 40% of global supply, and supports approximately five million people, either directly or indirectly.

Around one million jobs depend on the crop, making stability in the sector crucial for the country’s broader economic and political landscape.

The timing of the price hike has drawn attention from analysts who see it as both an economic relief measure and a strategic political gesture ahead of the polls.

Still, many view it as a long-overdue correction for farmers who have endured years of low earnings despite record profits for global chocolate manufacturers.

Regional ripple effect

The decision is also expected to send ripples across West Africa’s cocoa belt, particularly in Ghana and Nigeria, where governments often adjust prices in response to Ivorian policy shifts.

Ghana’s Cocoa Board (Cocobod) may face renewed pressure to raise its own farm gate prices to prevent cross-border smuggling and maintain farmer loyalty.

With global demand soaring and climate pressures threatening future yields, the latest Ivorian cocoa price signals a new era where African producers could wield greater influence in setting the terms of trade for one of the world’s most valuable commodities.

As global cocoa prices continue to soar amid climate-related supply constraints, Ivory Coast’s latest move underscores the growing importance of ensuring African producers reap more equitable rewards from the crops that power global industries.