Cocoa: Ivory Coast Could Set Purchase Price Between 1,850 and 2,000 FCFA

Following Ghana's lead, Ivory Coast is expected to increase the farm gate price of cocoa, but at a slightly higher level according to Bloomberg.

The country is projected to announce a price per kilogram of beans in the range of 1,850 FCFA to 2,000 FCFA at the start of the new 2024/2025 season, which opens on October 1. Last year, the season opened with a price of 1,000 FCFA per kilogram before rising to 1,500 FCFA at the beginning of the mid-campaign on April 1, coinciding with record highs in international markets.

On September 11, Ghana announced the start of its new harvest campaign with a price of 48 cedis, approximately 1,800 FCFA, up 45% compared to the mid-campaign and 129% compared to the main campaign.

If Ivory Coast sets a significantly higher price, it could have repercussions for its neighbor and partner, as both countries work together to establish a joint cocoa policy. Ghana could face increased smuggling into neighboring countries, including Togo. According to Accra's authorities, the country lost 160,000 tons of cocoa during the last campaign, about a third of its production, largely attributed to relatively lower purchase prices.

In Togo, where cocoa is not a strategic raw material, for example, cocoa was purchased for just over 4,000 FCFA in April, compared to an official price of 33.1 cedis in Ghana, roughly 1,500 FCFA.

Source: Sika Finance