Ghana and Ivory Coast Raise Farmgate Cocoa Prices
Ghana plans to increase its state-guaranteed cocoa price by nearly 45% for the upcoming season, while Ivory Coast has already adjusted its prices upwards.
Ghana plans to increase the state-guaranteed price paid to cocoa farmers by nearly 45% for the 2024/25 crop season. This adjustment aims to enhance farmer earnings and combat the smuggling of cocoa beans.
Ivory Coast, the world's largest cocoa producer, recently raised its farmgate price to approximately $2.55 per kilogram for the mid-crop of the current season. Ghana had previously implemented a significant increase of over 58% for its 2023/24 season.
Cocoa prices have surged in 2024 due to adverse weather conditions and crop diseases affecting both Ghana and Ivory Coast, which together account for over 60% of global supply. This has resulted in the third consecutive global cocoa deficit, with the International Cocoa Organization reporting a 45-year low in stock-to-grindings ratios.
The start of the 2024/25 season was postponed to curb smuggling, exacerbated by low prices and delayed payments. These market volatilities have led to reduced trading activity and uncertain supply outlooks.