Ivory Coast is considering cutting the price it pays farmers for cocoa beans to align with Ghana's, two government sources told Reuters, as the world's two largest producers of the chocolate ingredient face a major crisis.

Senior Ivory Coast officials said all options were on the table as the government debates whether to follow Ghana, which has already cut its farmgate price by 28.6% for the rest of the 2025/2026 season's main crop, in coordination with Abidjan, as it adjusts to plunging prices.

The farmgate price, set at the start of the harvest season, is the amount of money farmers receive for their product after harvest and before any intermediaries, exporters, processors, traders, or cooperatives add value.

The discussions with Ghana and within the Ivorian government on cutting the price to align with Ghana have not previously been reported.

Meanwhile, the Ivory Coast–Ghana Cocoa Initiative (ICCIG) said the two African countries, which together account for about 60% of global output, had been coordinating closely since the onset of the sector crisis.

"We have put all options on the table, and discussions are progressing well. Courageous and realistic decisions will be taken soon," the first Ivory Coast official said, requesting anonymity because they are not authorised to speak on the issue.

The second official said the continued price fall, which has seen cocoa drop by nearly 50% in recent months, left the government with little room to manoeuvre.

Cocoa futures on the ICE exchange fell to their lowest level in 2-1/2 years on Tuesday, as concerns about unsold cocoa stocks in the Ivory Coast and Ghana continued to weigh on prices.

"We must think about the survival of the cocoa sector in the Ivory Coast. We need to act; changes are underway," the source said, declining to disclose further details.

An inter-ministerial committee has met over the issue, and a decision could come soon, the two sources said.

A spokesperson for the Ivory Coast government did not respond to a Reuters request for comment.

MEASURES TO PREVENT STRUCTURAL DAMAGE

Alex Assanvo, ICCIG's executive secretary, said the two countries were adapting to the sudden market reversal and had taken measures to prevent structural damage.

He said the trading rooms of the Ivory Coast's Coffee and Cocoa Council and Ghana's COCOBOD remained in regular contact.

Assanvo also defended the Living Income Differential, introduced in 2019 to boost farmers' earnings, noting that recent market volatility underscores its relevance.

ICCIG is preparing a meeting between the two countries to strengthen coordination amid financial pressures on farmers.

"The organisation remains mobilised to coordinate policies in both countries," Assanvo said, adding that all players in the sector would be convened to review market developments and propose improvements to price-stabilisation mechanisms.

Exporters and buyers expect the Ivory Coast to announce a cut soon, saying the question is no longer if but when.

"The country is resisting, but for how long? I don't see Ivory Coast doing something different from Ghana," said the head of an Abidjan-based export company.