The Ivory Coast – or Côte d’Ivoire, if you prefer – is the world’s leading cocoa bean producer, and its annual production falls in the range of roughly 2 to 2.5 million metric tons of cocoa beans. From December 2024 to February 2025, the Harmattan, a dry, cool wind filled with dust, microbes, and parasites, coupled with a lack of rainfall, has raised concerns surrounding cocoa production. The sustainability of the industry and the well-being of cocoa farmers (and their communities) is at risk. Cocoa prices have reached record highs due to low supply, forcing buyers to find new ways to secure stocks.
Nations that produce cocoa, such as the Ivory Coast, tend to export primarily beans instead of manufactured cocoa or chocolate products due to tariff escalation. Following decades of progress in trade liberalization, it seems that lessons haven’t been learned. Donald Trump, the current president of the United States, imposed a minimum tariff of 10% on almost all foreign imports, which impacts both consumers and businesses. Though Trump has suspended “reciprocal” tariffs for 9o days pending further examination, Ivory Coast authorities cautioned such taxes would raise the price of cocoa even higher, disrupting normal trade relationships and increasing uncertainty across markets.
Cocoa Farmers In Ivory Coast Often Struggle To Turn A Profit
From the planting of the seeds to the harvesting of the pods, cocoa farming is engulfed in tradition, hard physical labor, and a constant battle against the environment. The African nation of Ivory Coast produces almost half of the world’s cocoa ingredients yet receives very little of the profit generated by the sector globally. The financial gain is essentially concentrated in the processing and distribution phases. According to Mondelez International, the company behind Cadbury and Milka, if urgent action isn’t taken, key producing states like Ivory Coast could become unsuitable for cultivation in the years to come without financial support and fairer markets.
The cocoa sector holds considerable importance in the global supply chain, but declining production jeopardizes its leadership, to say nothing of the livelihood of its farmers. Cocoa farmers on the Ivory Coast face significant difficulty earning sufficient money to afford the basic necessities for survival and a reasonable standard of living. Most of them make less than a dollar a day. Female cocoa farmers make around 30 cents a day, according to the United Nations Development Program. Since it’s a crisis situation, buyers are no longer able to buy at the normal price, and each comes and buys at their own price. Hence, farmers are the biggest losers.
U.S. Tariffs Could Lead To Increased Cocoa Prices And Market Instability
The United States is the world’s largest consumer of chocolate, as many people prefer sugary snacks to satisfy their sweet tooth. American consumers eat approximately 1.28 billion kilograms of chocolate confectionary per annum, though most of it comes from Canada and Mexico. The Liberation Day tariffs, should they go into effect, will lead to higher prices and slower growth, and sharp consequences are already visible in several African economies, which have regarded the U.S. as a welcoming market. The Trump administration plans to impose a 21% tariff on products from the Ivory Coast, in which case the main exporter of West Africa will raise the purchase price of cocoa beans.
Given the increased cost, American chocolate manufacturers and other cocoa importers will have no choice but to turn to more affordable sources of cocoa from countries not subject to tariffs or reduce their overall cocoa purchases. U.S. tariffs could further impact a market struggling with decreasing yields and shrinking funds that have made it impossible for cocoa farmers to meet global demands. The taxes imposed at the border come as African nations are recovering from the dismantling of the U.S. Agency for International Development, which aided strategically important countries. Put simply, America’s credibility in Africa was already marred.
On the Ivory Coast, the government sets cocoa prices at the beginning of each season, with pricing reflecting the underlying forces of supply and demand. Conversely, local prices are lower than the global market rates, which translates into the fact that farmers are forced to accept lower prices for their beans to remain competitive. Child labor remains prevalent, as families depend on their kids’ work to offset the high labor costs. Yields are, more often than not, too low for a living income. Those who manage to make a living have more land and, therefore, larger yields to sell to a cocoa manufacturer, not to mention the means to invest in their farm.
Europe Remains The Main Destination For Ivorian Cocoa
European countries account for about 70% of the cocoa exports from the African continent since it’s an important trade hub for chocolate products. Europe’s grip on the sector doesn’t come as a surprise, given that European countries are some of the most innovative, and chocolate production was industrialized on the continent in the early 19th century. Roughly 90% of the cocoa exported to Europe is bulk or ordinary cocoa, and it’s traded in large volumes. Asia has been a fast-growing market in recent years, but there aren’t enough cocoa beans to cater to the demand. Malaysia’s imports are valued at $3.3 billion.
African Leaders Have Urged The U.S. To Review The Free-Trade Agreement
The African Growth and Opportunity Act provides eligible countries with duty-free access to the U.S. market for countless products. The aim of this legislation is to help the economies of sub-Saharan Africa and boost economic relations between the United States and the region. There are fears that the AGOA, which will expire in September, is nearing the end of the road. African leaders, together with analysts who specialize in evaluating economic data, insist the United States should review the free-trade agreement, even if the tariffs nullify the benefits sub-Saharan African countries enjoy. It might be possible to negotiate future relationships.
Though the future seems bleak, there’s potential for thoughtful change. Ivory Coast must seek new markets for its cocoa and discuss strategies to increase local processing so as to mitigate reliance on raw bean exports. European consumers will inevitably buy cheaper because exporters may lower the price in an attempt to stimulate demand and attract more buyers. The future of Ivorian cocoa, and many others in the region, depends on political will and, above all, strategic investments.
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