Côte d’Ivoire concludes 291bn CFA cocoa buyback after price collapse
Côte d’Ivoire has concluded its 291 billion CFA franc cocoa stock buyback programme, launched after a more than 70% price drop left thousands of farmers unable to sell their harvests.
Six months after the collapse in global cocoa prices, Côte d’Ivoire has officially concluded its 291 billion CFA franc cocoa stock buyback programme, which was funded through the country’s stabilisation fund. The initiative was launched after a more than 70% drop in cocoa prices caused exporters to suspend purchases, leaving thousands of farmers unable to sell their harvests at the government’s guaranteed price of 2,800 CFA francs per kilogram.
Authorities identified 123,000 tonnes of unsold cocoa in January, with about 102,000 tonnes earmarked for the buyback after some stocks were later purchased by exporters. While the Interprofessional Agricultural Organisation (OIA Café-Cacao) says the programme has been fully completed, several cooperatives claim they never sold their inventoried beans. The dispute has prompted calls for the publication of beneficiary lists and an independent audit of the fund’s management before the new cocoa season begins on September 1, amid growing demands for greater transparency and accountability.
The buyback was a necessary intervention to protect farmers from the price collapse, but the dispute over its implementation raises questions about transparency and governance. The calls for an audit are a recognition that the programme’s success depends on public trust.
The Nigerian stake is clear. Nigeria is also a major cocoa producer, and the price collapse affected Nigerian farmers as well. The Nigerian government has been promoting value addition as a solution to price volatility, but the Ivorian experience shows that even well-intentioned interventions can be undermined by governance failures.
From a Nigerian vantage point, the Ivorian buyback is a model and a warning. The model: a government intervention to protect farmers. The warning: the programme’s credibility depends on transparency. If Nigeria pursues similar interventions, it must ensure that the funds are properly managed.
The winners: Ivorian farmers who were able to sell their harvests; and the Ivorian government, which has demonstrated its commitment to protecting farmers. The losers: the cooperatives that claim they were excluded; and the Ivorian public, which must trust the management of the fund.
Bottom Line: Côte d’Ivoire has spent 291 billion CFA francs to buy back cocoa. The farmers are protected. The question is whether the money was well spent or lost to corruption.