Ivorian farmers set for major gains after 50% cocoa price hike

Key Takeaways

The decision to increase cocoa prices comes shortly after cocoa farmers in Ivory Coast planned a protest in response to promises of a price hike from the country's agriculture minister. Experts highlight the importance of reviewing cocoa farmgate prices, especially considering the significant loss of cocoa beans to neighboring Guinea through smuggling. Both Ivory Coast and Ghana, the world's leading cocoa producers, have experienced a notable decrease in cocoa arrivals at ports due to factors like adverse weather, disease outbreaks, and smuggling activities. This has contributed to a global cocoa supply shortage over the past few years, leading to record-high cocoa prices reaching $10,000 per tonne on the world market. In its monthly Cocoa Market Report for February, the ICCO expressed concern about the unprecedented price surge and its potential implications for producers, companies, and consumers worldwide.