Ivory Coast faces surge in unsold cocoa stocks amid price standoff

Ivory Coast risks accumulating about 200,000 metric tonnes of unsold cocoa by the end of March when its main crop season closes unless authorities reduce state-regulated farmgate prices to stimulate purchases from farmers, according to industry experts and global trading executives.

The West African producer and neighbouring Ghana, which together supply roughly half of the world’s cocoa, are grappling with mounting stockpiles as beans from the main crop remain unsold both inland and at port facilities.

The buildup stems largely from the government’s decision last October to set farmer prices well above current international market levels, leaving traders exposed to heavy losses if they purchase beans at the regulated rate.

The surplus has contributed to downward pressure on global cocoa prices, which have fallen by about 50% this year and recently hit a near three-year low.

Mid-crop sales offer partial relief

Despite the slowdown in main crop purchases, local trade and government sources say the country last week secured agreements to sell about 200,000 tonnes from the upcoming April–September mid-crop to international buyers.

The mid-crop is typically processed domestically and attracts lower prices because it is considered lower quality.

Government intervention to support farmers

In late January, the government pledged to purchase 100,000 tonnes of unsold cocoa valued at roughly $500 million to provide liquidity for farmers who had not received payment for their beans. However, trade executives believe the total volume requiring government intervention could be significantly higher.

According to industry sources, Ivorian intermediaries have defaulted on at least 100,000 tonnes of main crop purchases. Meanwhile, an additional 100,000 tonnes expected to be harvested before the end of March may remain unsold if farmgate prices are not adjusted.

Regulator disputes stock estimates

The Abidjan-based Coffee and Cocoa Council has rejected market estimates of unsold stocks, calling them erroneous without providing alternative figures.

The country’s agriculture minister has indicated that a decision on farmgate prices for the mid-crop will be announced by the end of February earlier than usual.

This follows Ghana’s recent move to cut farmer prices by nearly one-third amid payment delays and declining world prices. Industry sources say Ivory Coast is considering a similar adjustment to restore market alignment and revive cocoa sales.