Ghana has increased its cocoa farm-gate price to GHS 42,400 per ton for the new season. This decision came on September 25, following a significant global cocoa price collapse. The move contrasts sharply with Côte d'Ivoire's approach, which saw a substantial reduction in farmer payments.
Côte d'Ivoire, on September 2, confirmed a farm-gate price of 1,200 CFA francs per kilo. This represents a 57% decrease from the 2,800 francs paid at the start of the previous season. For more than 1 million Ivorian cocoa growers, this means less than half their income per ton. Both nations faced the same market conditions, with cocoa futures hitting a record $12,906 per ton in December 2024 before plummeting below $3,000 by February 2026.
This divergence in pricing strategy highlights fundamental differences in how Ghana and Côte d'Ivoire manage their cocoa sectors. Ghana's decision aligns with a new law guaranteeing farmers at least 70% of the export value of their beans. This policy reflects a long-standing commitment to farmer welfare and the quality of Ghanaian cocoa. Côte d'Ivoire, conversely, has focused on processing and maintaining the solvency of its forward-sales system. Its price cut aims to make Ivorian beans more competitive for international buyers.
Dr. Constance Sorkpor's doctoral research, which compared the two countries' cocoa sectors, points to deeper causes beyond mere economics. She argues that each country's choices reflect who holds organized power within its cocoa system. In Ghana, approximately 800,000 cocoa-farming families form a large, well-organized group. The Ghana Cocoa Board (COCOBOD) has historically acted as a strong, autonomous regulator, protecting farmer prices and the reputation of Ghanaian beans.
The new Cocoa Board Act, passed in July, solidifies this farmer-centric approach. It legally mandates the 70% farmer share and introduces a pension scheme for cocoa farmers. The Act also establishes a tribunal to resolve disputes within the sector. This legislative framework underscores Ghana's commitment to its cocoa farmers, even as COCOBOD has faced challenges, including liabilities of around GHS 60 billion.
Côte d'Ivoire's reforms, however, have given more influence to exporters and grinders. This shift has led to policies favouring increased local processing, supplied with beans at competitive prices. While Côte d'Ivoire became the world's largest cocoa grinder in 2020/21, processing 777,000 tons by 2024, much of this is done by global firms like Cargill and Barry Callebaut. The Ivorian government now seeks to reduce the dominance of these foreign entities.
Ghana's processing capacity is about 505,000 tons annually, but it has processed only around 220,000 tons per year, less than 40% of its crop. In 2024, bean shortages even forced major processors like Cargill to halt production. A deputy finance minister explained that COCOBOD's pledging of beans as collateral for foreign loans made it difficult to supply local factories. This indicates a strategic choice about bean allocation, not a technology gap.
The new Ghanaian law now requires at least half the crop to be processed domestically. This will test whether a farmer-centered system can also successfully build a robust local processing industry. The differing strategies of Ghana and Côte d'Ivoire will continue to shape the global cocoa market. Observers will closely watch how these distinct approaches impact farmer livelihoods, national revenues, and the long-term sustainability of their respective cocoa sectors.