• Cocoa prices have fallen below $4,000 after peaking near $13,000 in 2024

• Rainforest Alliance urges long-term contracts to stabilize farmer incomes

• Producers in Côte d’Ivoire and Ghana face sharp income cuts amid price drop

Chocolate makers, traders, and retailers should prioritize farmer incomes as cocoa prices swing sharply, the U.S.-based NGO Rainforest Alliance said in a statement released on March 30.

After reaching a record $12,906 per ton in New York in December 2024, global cocoa prices have dropped steeply and are now trading below $4,000.

While the decline lowers input costs for processors, the organization is urging industry players to move beyond short-term market pricing and adopt longer-term purchasing contracts that provide more stable income for cocoa farmers.

Santiago Gowland, CEO of Rainforest Alliance, said that when cocoa prices fall, farmers are the first to absorb the shock, facing immediate income losses, rising debt, and reduced ability to invest in inputs or maintain their plantations. He added that this dynamic weakens the entire value chain, as a sustainable cocoa sector depends on economic models that can support farmers’ livelihoods, especially when market conditions are most difficult.

Nanga Koné, the organization’s country director in Côte d’Ivoire, echoed the call. “We need a system that works for farming families not only when market conditions are favorable, but also when they are most challenging,” he said.

The appeal aligns with longstanding advocacy from groups such as Fairtrade, which argue that guaranteeing a living income for farmers is central to achieving sustainability in the cocoa sector.

Analysts note that the cocoa value chain remains highly uneven, particularly in Côte d’Ivoire and Ghana. Farmers often capture only a limited share of gains during price increases but bear most of the losses when prices fall.

In response to the current downturn, authorities in both countries have reduced farmgate prices. In Côte d’Ivoire, the price per ton has been cut to CFA1,200,000 ($2,100), down from CFA2,800,000 ($4,939) six months ago. In Ghana, the price has been reduced by 28.6% to 41,392 cedis ($3,761) for the remainder of the season.

Espoir Olodo