Cocoa Crisis Deepens in Ivory Coast as Unsold Beans Pile Up and Farmers Face Mounting Debts

Cocoa Crisis Deepens in Ivory Coast as Unsold Beans Pile Up and Farmers Face Mounting Debts

Warehouses in parts of Côte d’Ivoire are filling up with unsold cocoa beans as a slump in global demand continues to shake the world’s largest cocoa-producing nation, leaving cooperatives struggling to pay farmers and threatening rural livelihoods.

In the western town of Duékoué, cooperative manager Sekou Dagnogo is facing a growing crisis. His warehouse is reportedly stacked almost to the ceiling with bags of cocoa beans that exporters are refusing to purchase, citing a sharp fall in international cocoa prices.

Exporters have declined to pay the government’s guaranteed farmgate price of 2,800 CFA francs (about $5.09) per kilogram, arguing that falling global prices have made Ivorian cocoa uncompetitive on the international market.

Dagnogo explained that his cooperative relies heavily on export sales to settle payments owed to farmers. With buyers staying away, unsold stocks are accumulating while debts owed to producers continue to rise.

He described the situation as a standstill, noting that financial obligations to farmers remain unpaid as the cooperative waits for buyers or intervention from regulators.

Regulator Steps In Amid Quality Concerns

Hopes among cocoa traders and farmers now rest on the intervention of the Coffee and Cocoa Council, which has already launched a programme to purchase approximately 100,000 metric tonnes of unsold cocoa beans that had remained in storage for weeks.

Authorities reportedly accelerated the emergency purchase programme following concerns that prolonged storage under poor conditions could lead to a deterioration in bean quality, potentially worsening losses across the supply chain.

Dagnogo said the regulator has assured cooperatives that it will continue buying back unsold produce, offering a temporary lifeline to traders struggling with excess inventory.

Farmers Forced Into Desperate Choices

At the farm level, the price crisis is having a deeply personal impact on growers. Cocoa farmer Frederic Kouassi Kouassi says some buyers are offering significantly lower prices—sometimes between 1,500 and 1,800 CFA francs per kilogram—well below the government-mandated minimum price.

Such transactions are prohibited under regulatory rules, but farmers facing financial pressure often feel compelled to accept the lower offers to meet immediate household and farming expenses.

Kouassi Kouassi, who farms in the small western village of Remikro, said he has begun storing harvested beans inside his home, fearing that continued unsold stock could worsen his financial situation before the mid-crop season, which typically runs from April to September.

He acknowledged that many farmers accept reduced prices simply to keep their operations afloat, reasoning that as long as cocoa trees remain productive, they must continue farming despite losses.

Global Demand Slump Driving Market Turbulence

The crisis in Ivory Coast mirrors broader global cocoa market challenges, with prices falling to their lowest levels in more than two years due to weakening demand and shifting supply dynamics.

Analysts warn that prolonged price volatility could destabilise cocoa supply chains across West Africa, where millions of smallholder farmers depend on cocoa as their primary source of income.

Industry observers also caution that sustained low prices may discourage farm maintenance and investment, potentially affecting future production volumes and long-term sector sustainability.

For now, farmers, cooperatives, and regulators in Ivory Coast remain locked in a delicate balancing act—trying to maintain guaranteed prices, protect farmer incomes, and respond to harsh global market realities.

Source: Reuters