Cocoa farmers have frowned at the current pricing models designed to stabilise prices across producing countries, but in practice, it has been adjusted to match international market fluctuations, with the outcome far from the original goal of creating more stability and protection for farmers.

The Cocoa Farmers Alliance Association of Africa (COFAAA) said it is unfortunate that many of the farmers, especially from Cote d’Ivoire and Ghana, could not really enjoy the prices owing to their market models, one of which is semi-regulated with price setting, while the latter is totally regulated with price setting and sole exporting.

The Global President of COFAAA, Comrade Adeola Adegoke, in a statement, said the idea of setting up these market models by our respective governments is to protect the cocoa farmers from price volatility of the market, which they are currently experiencing.

He said: “We understand that cocoa farmers are currently going through a difficult time now owing to the downturn in cocoa price over the past one year. No origin countries in Africa is currently immune from this terrible situation, which has negatively impacted the good enthusiasm exhibited by all of us during the cocoa price boom in 2024, which reached about $12,000 per metric tonne at the international market.

“We have also been closely following recent developments in the chocolate market, where the recent price surge has placed significant pressure on sales and margins particularly in Europe. At the same time, it’s important to recognise that global chocolate consumption has long been sustained by the hard work of African cocoa farmers many of whom continue to face serious challenges, including low incomes, child labour risks, limited access to education, poor infrastructure, inadequate healthcare, and growing security concerns such as illegal mining.

“These realities continue to affect the long-term sustainability of the sector. This brings us to an important and shared question: What is a fair and sustainable price for cocoa per ton today? One that supports both farmers at origin and buyers in international markets while also aligning with the evolving compliance and sustainability standards shaping the future of the industry.”

Adegoke said it is mind-boggling to see that over the past year, despite the sharp downturn in cocoa prices, the impact of the Living Income Differential (LID) has not been as strong as many had hoped.

He noted that the LID, which provides an additional $400 per ton regardless of negotiated market prices, was designed as a safety net for farmers.

“However, its benefits may not be fully reaching farmers, possibly due to limited access to information at the farm level. That said, the LID remains a commendable initiative by Ghana and Côte d’Ivoire. It represents an important step toward improving farmer incomes and deserves continued support as a mechanism that provides additional value beyond market prices. This raises an important question for all stakeholders: How sustainable is the LID in the long term? Is it a tool that can work consistently across different market conditions, or does its effectiveness depend on certain parameters?

“We respectfully encourage the Conseil du Café-Cacao, Ghana COCOBOD, and the Côte d’Ivoire–Ghana Cocoa Initiative to provide further clarity on the current status and future direction of the LID. Their guidance will be valuable for other cocoa-producing countries in Africa that are considering adopting similar approaches.

“COFAAA as an organisation representing the producers in the continent – the voice and the mouthpiece has set up a COFAAA Global Members Assembly & Empowerment Forum to appraise the current development as it affects us as a continent and come up with a position, especially considering that Africa produces 70 per cent of world cocoa production, with Ivory Coast and Ghana alone accounting for 60 per cent of it, and has gained less than six per cent as a continent from the over $147b value of the chocolate market across the world.”

Adegoke said the reason for setting up the forum is to also find a way to assist the cocoa farmers across the origin countries through provision of inputs and other safety nets that could one way or the other cushion the effects of the fall in cocoa prices experienced across the board of each cocoa-producing country.

“Representation at this COFAAA Assembly Forum includes approximately 20 cocoa farmers per country, with participation currently confirmed from Côte d’Ivoire, Ghana, Cameroon, Nigeria, Uganda, and Sierra Leone. Subcommittees have been established and are led by Cocoa experts across Africa, bringing together diverse experience and perspectives to guide the initiative.”