Global Cocoa Market Summary

• In Cote d'Ivoire, a sharp decline in global cocoa prices has left more than 700,000 metric tons of cocoa unsold, placing significant financial strain on farmers despite a government-set producer price designed to provide stability. Reduced buying activity from major trading firms, criticism of forward selling strategies, and heavy rainfall disrupting farm access while increasing disease risks have further complicated the situation.
• Ghana is facing similar challenges. Although a large share of the 2025/26 harvest was sold in advance to reduce exposure to market volatility, the government was still forced to lower the official producer price to reflect weaker market conditions. Delayed payments to farmers have also created operational difficulties, contributing to management issues and crop spoilage.
• The episode also explores Nigeria's efforts to strengthen its cocoa sector through the distribution of one million hybrid cocoa seedlings under the National Cocoa Development Plan. While the initiative aims to improve productivity and resilience against disease and climate risks, the country continues to face structural obstacles, including aging plantations, climate pressures, limited market access, and insufficient value addition.
• At the global level, cocoa prices have retreated sharply from their 2024 highs as improved harvest expectations, weaker demand from manufacturers, and a stronger US dollar have weighed on the market. The discussion concludes by emphasizing that the current downturn exposes longstanding weaknesses in the cocoa industry, including persistent price volatility, dependence on export markets, and the limited share of value retained by producing nations.