The Coffee and Cocoa Council (CCC) of Ivory Coast has taken significant action by confiscating 33 trucks that were transporting approximately 1,100 tonnes of cocoa beans smuggled from Guinea, as reported by two sources connected to the council. The surge in cocoa smuggling within the region has been linked to the poor harvests experienced in both Ghana and Ivory Coast, which are recognized as the world’s largest and second-largest cocoa producers. The details of this seizure have been corroborated by a military official, two buyers, and three exporters, all of whom have chosen to remain anonymous due to the sensitivity of the information and restrictions on public commentary.
This decline in cocoa production has resulted in a troubling four-year supply deficit, significantly driving up prices for cocoa and chocolate in global markets. In response to these challenges, Ivory Coast has made the decision to raise the fixed farmgate price for cocoa farmers by 20%, now set at 1,800 CFA francs ($3.09) per kilogram for the upcoming season. This announcement was made by Agriculture Minister Kobenan Kouassi Adjoumani, who highlighted that the 2023/24 season is expected to see a 25% decrease in cocoa production across West Africa, which includes Ivory Coast.
In a parallel move, Ghana has also implemented a similar increase in farmgate prices. This coordination between the two leading cocoa producers is aimed at stabilizing farmgate prices, thereby sustaining the industry and improving the financial well-being of farmers. Earlier in September, Ghana raised its farmgate price by nearly 45% to 48,000 cedis ($3,043.75) per metric ton. The 2024/25 cocoa season in Ghana began on October 1, with cocoa arrivals at ports reported at 13,000 tonnes by October 6, reflecting a significant 74% decline compared to the previous year.
In an effort to mitigate the issue of bean hoarding, the CCC reported last month that it had implemented measures in September, including potential sanctions against buyers and cooperatives, aimed at ensuring compliance and protecting the integrity of the cocoa supply chain.
