Côte d’Ivoire, the world’s leading cocoa producer, has set an ambitious target: to process 100% of its cocoa crop at the first stage by 2030. While the government is actively encouraging investment in this processing sector, the industry still grapples with significant underlying structural challenges.

Côte d’Ivoire's cocoa processing sector is currently facing a challenging period. Since January 2025, grinders have intentionally reduced their bean purchases by about 20%, Reuters reported on July 7, citing anonymous industry sources.

This slowdown in processing activities stems from worries about industrial profitability. This situation is largely due to a sharp increase in bean prices and the poor quality of beans from the mid-crop harvest, which are considered "more acidic and lower in butter content."

According to information shared last May by the financial data platform Barchart, about 5% to 6% of beans from the mid-crop harvest are of poor quality. This contrasts sharply with only 1% during the main crop. The issue has been attributed to the late arrival of rainfall, which negatively affected cocoa tree growth.

It's also worth noting that Ivorian authorities set the farmgate price for cocoa during the mid-crop season at 2,200 CFA francs per kilogram. This marks a 22% increase over the main crop season's rate and is the highest price ever received by producers in the sector.

"No one wants to pay more for lower-quality beans. Plus, butter is so expensive that clients buy less and are looking for alternatives," an industry operator told Reuters.

Overall, this industrial slowdown is expected to lead to a downward revision of grinding forecasts. The U.S. Department of Agriculture (USDA) initially estimated these forecasts at 800,000 tonnes for the 2024/2025 season in its latest report on the Ivorian market, published on March 7.

More broadly, current market conditions highlight the structural challenges the government will need to address to achieve its growth ambitions for the processing sector by 2030.

Stéphanas Assocle