Cocoa Bean Monthly Update 2026-02

Atlas Commodities Limited has refuted claims that it operates without its own warehouses, confirming it maintains registered and rented depots in key cocoa-growing areas including Ashanti, Eastern, Western, and Central regions. The company emphasized compliance with the 2015 Regulations and Guidelines for Internal Marketing of Cocoa, highlighting tenancy agreements and verifiable records with COCOBOD and the Quality Control Company. While acknowledging a temporary use of a Produce Buying Company (PBC) depot in Hohoe in December 2025 to prevent cocoa smuggling, Atlas described this as an isolated district-level arrangement. The firm also holds Rainforest Alliance sustainability certifications, underscoring adherence to industry standards. Despite these clarifications, concerns persist regarding private firms’ access to state infrastructure and regulatory compliance in the cocoa sector.

Indonesia's Ministry of Trade has set the reference prices for key agricultural commodities for March 2026, with crude palm oil (CPO) prices rising to US$938.87 per metric ton, a 2.22% increase from February 2026. This price strengthening is driven by higher demand from major importers like India and China, alongside supply constraints due to lower production and rising soybean oil prices. Conversely, cocoa bean reference prices fell sharply by 29.21% to US$4,047.45 per metric ton, reflecting increased supply from major producers such as Ivory Coast amid weakening demand. The export levy and exit tax rates for these commodities were also adjusted accordingly under relevant ministerial regulations. Additionally, pine resin prices increased by 4.88% to US$903 per metric ton, while prices for various wood products showed mixed movements.

Ghana’s government has reduced the cocoa producer price to GH¢41,392 per tonne (GH¢2,587 per bag) for the remainder of the 2025/2026 crop season, a move described by President John Dramani Mahama as difficult but necessary to maintain the long-term stability of the cocoa sector. The price cut aims to address financial challenges facing the industry while sustaining growth and protecting Ghana’s status as a leading global cocoa producer. Although the reduction may impose short-term strain on farmers, it is part of broader economic measures to safeguard the sector’s future and ensure collective well-being.

Ghana’s 2026 State of the Nation Address showcased significant economic recovery, including reduced inflation, a stronger cedi, and a decline in public debt, largely supported by gold exports formalized through the Ghana Gold Board. However, the government faces urgent pressure to intensify anti-corruption efforts, with the public demanding visible justice against officials who abused public trust. Additionally, the address highlighted the escalating threat of high-tech illegal mining (galamsey), which is severely damaging cocoa farms, water bodies, and agricultural productivity. Current enforcement measures have been insufficient, prompting calls for a targeted state of emergency in critical mining hotspots to protect environmental and economic stability. The address emphasized that sustainable macroeconomic progress depends on integrating ecological governance to safeguard Ghana’s agri-food resources and long-term economic security.

Atlas Commodities Limited has denied allegations of exploiting the public office of its founding CEO, Ato Boateng, to gain unfair access to state-owned Produce Buying Company (PBC) infrastructure or financial advantage. The company highlighted that its commercial agreements with PBC, including a Memorandum of Understanding and a Sustainability Cooperation Agreement signed in October 2023, predate Boateng’s appointment as Deputy Chief Executive at COCOBOD in February 2025. Atlas acknowledged temporary use of PBC depot facilities in December 2025 was authorized at the district level within existing operational relationships. Boateng resigned from Atlas and placed his shares in a blind trust before assuming public office, with no involvement in company management thereafter. The company emphasized that Boateng’s COCOBOD role does not oversee Licensed Buying Companies, negating conflict of interest claims, and expressed confidence that a thorough review would clear the allegations.

President John Dramani Mahama announced significant reforms in Ghana's cocoa sector aimed at transforming the industry through competitive pricing and resolving a GH¢32.9 billion government debt. These reforms are expected to provide cocoa farmers with fair and transparent prices that cover production costs and ensure decent margins. The government also introduced fiscal reforms, including VAT adjustments and abolition of nuisance taxes, which have collectively returned GH¢6 billion to citizens and contributed to a strengthened external position with a current account surplus of GH¢9.1 billion by December 2025. Robust growth in gold, cocoa, and non-traditional exports, alongside increased remittances, underpinned this economic improvement. Additionally, the launch of the 24-Hour Economy and Accelerated Export Development Programme aims to enhance productivity, deepen value chains, and create quality jobs in agriculture and related sectors.

Ivory Coast and Ghana, which produce half of the world’s cocoa, are facing significant challenges due to ample global harvests, falling cocoa prices, and reduced demand from chocolate manufacturers. Fixed farmer prices set last October were significantly higher than current world futures prices, leading to unsold stockpiles and delayed payments to farmers. In response, Ivory Coast plans to lower its fixed price by about a third starting March 1 and has launched a program to buy unsold cocoa stocks, while Ghana has already cut its fixed price by nearly a third. The global cocoa market is experiencing a surplus of 300,000-400,000 tons this season, driven by favorable weather and demand contraction as chocolate makers reduce cocoa content and substitute ingredients. Cocoa remains a critical export commodity, accounting for nearly 40% of Ivory Coast’s and 15% of Ghana’s export revenues, with millions of smallholder farmers dependent on the crop for their livelihoods.

Ivory Coast is expected to end March with nearly 200,000 tons of unsold cocoa due to a price gap between the government-set guaranteed farmgate price and lower international market prices. The country's fixed pricing system, designed to protect farmer incomes, has become strained as global cocoa futures have declined from their 2023-2024 highs amid slowing demand and improved supply expectations. This price discrepancy has led to slower exports and accumulation of cocoa stocks in warehouses and ports, with buyers hesitant amid price volatility and weaker demand from chocolate manufacturers. The government has begun public purchases of unsold cocoa and is reviewing producer prices for the mid-crop harvest to support rural incomes and stabilize the market. Prolonged export disruptions risk impacting global supply chains, given Ivory Coast and Ghana's combined 50% share of global cocoa output.

Ivory Coast has resumed cocoa sales for the 2025/26 season following an adjustment in its pricing strategy, ending a months-long dispute with international buyers. The country’s Coffee and Cocoa Council (CCC) reduced or removed the “country premium” to better align with global market prices after exporters rejected the fixed farmgate price of 2,800 CFA francs per kilogram amid a 50 percent drop in global cocoa prices. The standoff had left over 200,000 metric tons of cocoa unsold, raising concerns about spoilage and supply chain disruptions. In January 2026, the CCC intervened by purchasing 100,000 tons of unsold beans for $500 million and secured an additional 200,000 tons for processing. Despite the resumption of trade, challenges persist due to weak global demand and storage risks that could impact cocoa quality.

The West African cocoa market is experiencing a significant oversupply, with up to 200,000 tons of unsold cocoa expected in Ivory Coast by the end of March due to purchase prices set above market levels. This price misalignment has led international traders to reduce or halt purchases, causing inventory buildup and a sharp decline in global cocoa prices by about 50% since the start of the year. Ghana has responded by cutting purchase prices by nearly one-third to stimulate trade, while Ivory Coast is considering similar measures to stabilize the market. The coming weeks are critical, as price adjustments could resume trade and ease oversupply, impacting short-term planter incomes and long-term market stability for chocolate producers.