Ivory Coast, the world’s top cocoa producer, is considering raising farmgate prices for the coming harvest above rival Ghana, although growers in both countries would still be fetching well less than the global market.

The industry regulator Le Conseil Cafe-Cacao is seeking to set a price between 1,850 CFA and 2,000 CFA per kilogram of well-dried cocoa for the main crop starting in October, according to people familiar with the matter, who asked not to be named because the information was not public. That would be an increase of at least 23% from the mid-crop harvest that will wrap up this month and equates to $3,140 to $3,400 per ton.

Harvest shortfalls across West Africa sent cocoa futures to an all-time high earlier this year, topping $11,000 a ton. While futures have eased since, the December contract is trading above $7,500 a ton in New York.

Governments in Ghana and Ivory Coast raised prices partway through the 2023-24 season, but growers haven’t fully benefited from the global rally. That’s encouraged smuggling to countries like Liberia and Guinea where the market isn’t as tightly regulated and prices are much higher.

Ivory Coast’s cocoa price decision ultimately rests with the president’s office. A spokesperson for the presidency declined to comment. The CCC’s press representative did not respond to phone calls and a text message seeking comment.

Farmers selling beans across borders can affect official production statistics in cocoa-producing nations and make it difficult to fulfill forward sales, resulting in a loss in revenue.

A decline in output, combined with bean smuggling in the current season that will end September 30, 2024 contributed to supply shortfalls that forced the Ivorian regulator to rollover contracts to avert defaults with exporters.

The country has lost an estimated 150,000 to 200,000 tons of beans to smuggling this season, the people said. With relatively porous borders, such losses have plagued both Ivory Coast and Ghana for years.

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