Cocoa sales resume in Ivory Coast after regulator drops premium

Cocoa sales resume in Ivory Coast after regulator drops premium

Cocoa Sales Resume in Ivory Coast After Regulator Adjusts Premium Structure

Ivory Coast has resumed cocoa sales for the 2025/26 season following adjustments to its pricing structure, resolving a prolonged standoff with international buyers. The Coffee and Cocoa Council (CCC), the country's regulatory body, reportedly agreed to reduce or eliminate the country premium—a fee added to Ivorian cocoa sales—to align with global market conditions and unlock trade. This move follows months of stalled transactions, as exporters resisted paying the government's fixed farmgate price of 2,800 CFA francs ($5.09) per kilogram, which became uncompetitive amid a 50% drop in global cocoa prices year-to-date.

The pricing dispute had led to a bottleneck, with over 200,000 metric tons of unsold cocoa stockpiled in warehouses and ports, raising concerns about quality degradation and supply chain disruptions. To address the crisis, the CCC intervened in January 2026 by purchasing 100,000 metric tons of unsold beans at a cost of $500 million, prioritizing liquidity for farmers and cooperatives. The regulator also accelerated mid-crop sales, securing 200,000 tons of lower-grade beans for processing.

The premium adjustment reflects broader structural tensions between Ivory Coast's price stabilization policies and volatile global markets. Historically, the country imposed a 70–150 pounds ($99–$212) per tonne premium to reflect bean quality and fund farmer income initiatives. However, buyers increasingly demanded a "country discount" to offset the Living Income Differential (LID), a $400-per-tonne premium introduced to boost farmer wages. By aligning premiums with market realities, Ivory Coast aims to balance farmer livelihoods with export competitiveness.

While the resolution stabilizes short-term trade flows, challenges persist. Prolonged storage risks quality losses, and global demand remains weak, pressuring processors and chocolate manufacturers reliant on Ivorian supplies. The outcome also highlights the fragility of government-managed pricing systems in volatile commodity markets. With Ivory Coast accounting for 40% of global cocoa output, sustained disruptions could ripple through global supply chains, particularly as sustainability and cost pressures intensify for downstream buyers.