Global cocoa prices surge but African farmers are left behind

This surge has had ripple effects on the world market, with prices skyrocketing by nearly 50% on the London exchange in March alone, reaching over $10,000 per tonne, Semafor reported.

While cocoa farmers in Cameroon and Nigeria have reaped the benefits of liberalized markets, their counterparts in Côte d’Ivoire and Ghana have largely missed out due to predetermined prices set by regulators. However, there are signs of potential change as the Ivorian president considers raising the farmgate price to better support local farmers.

Despite the soaring cocoa prices, African farmers continue to struggle to make ends meet. Research by Make Chocolate Fair revealed that, on average, African cocoa farmers receive merely 6 cents from every $1 spent on a chocolate bar. This share falls far short of providing a sustainable livelihood for these farmers and their families, trapping many in poverty.

“For the euro of the selling price that consumers in Germany pay for a bar of chocolate, almost eight cents go to the cocoa farmers. This amount is far too low to be able to live on it. While all other players in the chocolate supply chain make profits, most cocoa farmers cannot cover the costs of production and livelihood. The majority of cocoa farming families live in poverty,” the report indicated.

With these disparities in the supply chain, advocates have called for fairer pricing mechanisms and greater support for farmers to ensure a more equitable distribution of wealth throughout the industry.