Fresh concerns have emerged over the sustainability of cocoa production in Africa, as stakeholders push for reforms to address persistent income disparities affecting farmers.
The latest intervention comes as COFAAA calls for uniform cocoa prices across the continent to protect producers from volatile global market trends.
The President of the Cocoa Farmers Alliance Association of Africa, Adeola Adegoke, warned that existing pricing frameworks have failed to deliver meaningful benefits to cocoa farmers, despite being designed to stabilise earnings and shield producers from international price fluctuations.
COFAAA calls for uniform cocoa prices amid market instability
In an open letter addressed to cocoa farmers across Africa, Adegoke highlighted the growing economic strain faced by producers, noting that the downturn in global cocoa prices over the past year has reversed gains recorded during the 2024 price rally.
He explained that COFAAA calls for uniform cocoa prices because the current fragmented pricing systems across African countries have not achieved their intended objectives.
While some nations operate regulated pricing models and others adopt semi-liberalised frameworks, the outcome has been inconsistent income levels for farmers.
According to him, these systems were meant to provide stability but have instead mirrored global market volatility, leaving farmers exposed to sharp price declines.
Pricing models fail to shield farmers
Adegoke criticised existing pricing mechanisms, arguing that they lack the structural depth needed to protect farmers from external shocks. He noted that even with government interventions, local prices often adjust quickly in response to global market movements.
This reality, he said, undermines the core objective behind regulated pricing systems, which is to ensure predictable and fair earnings for producers.
As a result, COFAAA calls for uniform cocoa prices that would create a harmonised framework across producing countries, enabling better coordination and stronger bargaining power in the global market.
Industry analysts say such a unified approach could reduce price disparities between countries and limit arbitrage practices that often disadvantage farmers.
Disconnect between global chocolate market and farmer welfare
Adegoke also raised concerns about the imbalance between Africa’s contribution to global cocoa supply and the economic benefits received by its farmers.
Africa accounts for approximately 70 per cent of global cocoa production, yet earns less than six per cent of the estimated $147 billion global chocolate market.
He stressed that COFAAA calls for uniform cocoa prices partly to address this structural inequality, which continues to leave farmers vulnerable to poverty despite their critical role in the value chain.
The COFAAA president pointed out that many cocoa farmers still face challenges such as low incomes, limited access to education, poor infrastructure, inadequate healthcare, and security threats, including illegal mining activities.
Questions over effectiveness of Living Income Differential
The organisation also questioned the effectiveness of existing interventions such as the Living Income Differential (LID) introduced by Ghana and Côte d’Ivoire.
While acknowledging that the initiative was a step in the right direction, Adegoke said its impact has not been as significant as expected, particularly in cushioning farmers against recent price declines.
He called for greater transparency from key institutions such as the Conseil du Café-Cacao and the Ghana Cocoa Board (COCOBOD), urging them to clarify the future direction of the policy.
Analysts note that the limited impact of the LID reinforces why COFAAA calls for uniform cocoa prices as a more comprehensive solution to pricing challenges.
New forum to drive unified African position
In response to the ongoing crisis, COFAAA has launched a Global Members Assembly and Empowerment Forum aimed at developing a coordinated African strategy on cocoa pricing and farmer welfare.
The initiative will bring together stakeholders from major cocoa-producing countries, including Nigeria, Ghana, Côte d’Ivoire, Cameroon, Uganda, and Sierra Leone.
According to Adegoke, the forum will assess current market trends, identify policy gaps, and propose actionable solutions to strengthen the sector.
He reiterated that COFAAA calls for uniform cocoa prices as part of a broader agenda to reposition African cocoa producers within the global value chain.
The forum will also explore support mechanisms such as improved access to farm inputs, financial safety nets, and capacity-building programmes to enhance productivity and resilience.
Implications for Nigeria and African economies
For Nigeria and other cocoa-producing nations, the push for harmonised pricing could have far-reaching implications.
A unified pricing framework may enhance export earnings, improve farmer incomes, and strengthen Africa’s negotiating position in the global market.
However, experts caution that achieving consensus across multiple countries with different policy environments may prove challenging.
Nevertheless, the urgency behind COFAAA calls for uniform cocoa prices reflects the growing recognition that fragmented approaches are no longer sufficient to address systemic issues in the sector.
Outlook: need for structural reforms
As global cocoa prices remain volatile, stakeholders agree that deeper structural reforms are required to ensure long-term sustainability.
These include strengthening value addition within Africa, improving supply chain efficiency, and expanding local processing capacity to capture more value from the cocoa industry.
Ultimately, the call that COFAAA calls for uniform cocoa prices signals a critical turning point for Africa’s cocoa sector—one that could redefine how value is distributed across the global chocolate industry.
If successfully implemented, such reforms could improve livelihoods for millions of farmers while positioning Africa as a stronger player in the global agricultural economy.