COFAAA pushes for unified Cocoa pricing model across Africa

By: Amarachi Okonkwo

The President of the Cocoa Farmers Alliance Association of Africa (COFAAA), Adeola Adegoke, has urged African cocoa-producing countries to adopt a harmonised pricing model, warning that existing pricing frameworks are failing to deliver sustainable benefits to farmers despite their initial objectives.

In an open letter to cocoa farmers across the continent, Adegoke expressed concern over the persistent decline in farmers’ incomes following the sharp price volatility that has characterised the global cocoa market since the record rally of 2024.

He noted that producers across Africa are currently grappling with reduced earnings and heightened market uncertainty, stating that no cocoa-producing country on the continent has been spared from the downturn.

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According to him, while governments in major producing countries such as Côte d’Ivoire and Ghana introduced regulated and semi-regulated pricing systems to shield farmers from market fluctuations, these measures have not yielded the intended stability.

“Although these systems were designed to stabilise prices across cocoa-producing countries, in practice, prices have been quickly adjusted to match international market fluctuations,” Adegoke said, adding that this has eroded confidence in current policy frameworks.

The COFAAA president further raised concerns about the disconnect between the global chocolate industry and the welfare of African cocoa farmers, noting that despite contributing about 70 per cent of global cocoa supply, African producers receive less than six per cent of the estimated $147 billion global chocolate market.

He highlighted ongoing structural challenges facing farmers, including low incomes, limited access to education and healthcare, poor infrastructure, child labour risks, and security threats such as illegal mining in some producing regions.

Adegoke also questioned the effectiveness of pricing interventions such as the Living Income Differential (LID) introduced by Ghana and Côte d’Ivoire to improve farmer earnings.

“It is concerning to see that over the past year, despite the sharp downturn in cocoa prices, the impact of the Living Income Differential has not been as strong as many had hoped,” he said, while acknowledging the initiative as a positive step that requires further evaluation and policy clarity.

He called on the authorities behind the LID, including the Conseil du Café-Cacao in Côte d’Ivoire and Ghana’s COCOBOD—to provide clearer guidance on the policy’s current direction and long-term sustainability.

To address these challenges, COFAAA has launched a Global Members Assembly and Empowerment Forum aimed at developing a unified African position on cocoa pricing and farmer welfare.

The forum, according to Adegoke, will bring together representatives from major cocoa-producing countries including Côte d’Ivoire, Ghana, Nigeria, Cameroon, Uganda and Sierra Leone, alongside expert-led subcommittees tasked with reviewing market developments and proposing actionable solutions.

He explained that each participating country will be represented by about 20 farmers, with broader stakeholder engagement expected through a virtual public session scheduled for March 21, 2026.

Adegoke emphasised that the initiative would also explore strategies to support farmers with essential inputs and establish safety nets to cushion the impact of price declines across the continent.

“We cannot continue doing the same things in the same way in Africa and expect a different outcome,” he said, calling for coordinated reforms to ensure fairer returns for cocoa producers and long-term sustainability for the sector.