Ivory Coast is exploring reforms to align government-set cocoa prices with volatile international market levels, sources said.
The move comes after a dramatic drop in global cocoa prices triggered a sales crisis and a pile-up of unsold beans.
World cocoa futures, which nearly tripled in 2024, have now lost three quarters of their value, trading around $3,300 per ton.
Last October, Ivory Coast set farmer prices above world levels, leaving global traders facing steep losses and halting further cocoa purchases.
The government pledged to buy unsold cocoa stocks at a cost exceeding 500 billion CFA francs, injecting cash to struggling farmers.
“We need to be more responsive and realistic in an extremely volatile market,” said one source, without detailing exact reforms.
Since 2012, the government abandoned spot buying, setting fixed farmer prices based on forward sales of the anticipated crop each season.
Another source stressed the need for agility and responsiveness, highlighting that the new marketing system remains uncertain and undefined in practice.
Industry voices suggest reducing reliance on multinational companies, which dominate 80% of cocoa exports, to create more local market competition.
“A reform should focus on direct sales to chocolate makers and strengthening local players to balance multinational influence,” said exporter Ismael Kone.
Some experts warn international traders are essential to move cocoa from inland farms to chocolate producers in Europe and North America.
A veteran consultant argued reforms are unlikely to improve consumption, noting that market recovery depends on a rebound in global chocolate demand.
The government faces the challenge of modernising the system while protecting farmers, traders, and global buyers in an unpredictable cocoa market.