Ivory Coast has raised the 2024/2025 state-guaranteed mid-crop price paid to cocoa farmers by 22% to boost farmers' revenues, the country's agriculture minister said on Wednesday.
The world's top cocoa grower set the farmgate price at 2,200 CFA francs (R68.94) per kg, up from 1,800 CFA francs, Kobenan Kouassi Adjoumani said in a statement.
The price is in line with the 2,000-2,300 CFA franc range that sources gave Reuters last month for the April to September mid-crop.
"Despite the downward trend in the international market, the president has decided to set the price as high as possible," Adjoumani said.
Cocoa prices hit record highs last year, driven by supply issues in the main supply region of West Africa. But they have since dipped and hit a four-month low in March.
Officials have said that the hike in the farmgate price is justified because the regulator was able to make good sales when the market was fairly bullish.
They said Ivory Coast was about to experience its worst mid-crop output in the last 10 years due to an unusually long dry season.