Ivory Coast cocoa buyout completed, authorities say

Ivory Coast’s cocoa buyout operation has been officially completed, according to the nation’s Coffee-Cocoa Council, which issued a statement confirming the operation ended on Thursday. The government allocated a total of 280 billion CFA francs to acquire 100,000 tonnes of cocoa beans from local farmers. This move came amid concerns over a slowdown in exports and rising stockpiles of unsold beans in warehouses. The operation followed a sharp decline in global cocoa prices, which had previously reached record levels in late 2024. Last year, prices dropped significantly, leading to financial strain for many farmers. In response, the government stepped in to stabilize the market by purchasing surplus beans, aiming to prevent further losses and ensure continued production. The initiative was part of broader efforts to protect the livelihoods of approximately five million people who depend on the cocoa industry. Ivory Coast produces around 2 million tonnes of cocoa annually, making it the world’s largest producer. The sector contributes nearly 14 percent to the country’s gross domestic product. However, the recent price slump created uncertainty within the supply chain. Farmers faced reduced income, while traders struggled with excess inventory. The buyout was intended to provide immediate relief and restore confidence in the market. The government’s decision to intervene marked a shift from previous policies that relied heavily on market forces. In March, the guaranteed producer price was slashed by nearly 60 percent, dropping from 2,800 CFA francs per kilogram to 1,200. This drastic reduction sparked widespread criticism among farmers and agricultural experts, who argued that the price cuts undermined the sustainability of the sector. Despite these challenges, the buyout operation proceeded under the supervision of the Coffee-Cocoa Council, which oversees the regulation of cocoa and coffee production in the country. Some stakeholders have questioned the accuracy of the government’s figures regarding the volume of beans purchased. While officials claim the operation acquired exactly 100,000 tonnes, some independent assessments suggest the actual amount could be higher. These discrepancies highlight ongoing debates about transparency and the effectiveness of state interventions in agricultural markets. Critics argue that without more detailed data, it is difficult to assess whether the buyout truly addressed the underlying issues affecting the sector. The impact of the buyout remains to be fully evaluated. With the operation concluded, attention is turning toward how the purchased beans will be distributed or sold. Some reports indicate that the government plans to export the beans to international markets, though the exact destinations and terms remain unclear. Meanwhile, farmers continue to face economic hardship, with many still awaiting compensation for their produce. The long-term success of the intervention will likely depend on broader reforms aimed at stabilizing prices and improving access to fair trade opportunities.