The government of Ivory Coast has authorized the country’s cocoa regulator, Le Conseil Café-Cacao (CCC), to purchase around 200,000 tons of cocoa beans from farmers, as declining international prices have put local exporters under financial pressure.

According to industry sources, on December 11, CCC met with representatives of multiple companies struggling to fulfill forward contracts due to the recent market downturn. The government approved CCC to acquire the entire cocoa volume initially designated for these exporters.

Global price drops have significantly reduced the earnings of local exporters, making it difficult for them to honor pre-agreed forward contracts with the regulator. Cocoa futures have fallen by more than 50% since last December, amid forecasts of a surplus in the current season. High production levels in Ivory Coast have further intensified the price decline.

Industry insiders report that CCC will carry out the purchases through its subsidiary, Transcao. Requests for comment sent to CCC and the Ministry of Agriculture were not responded to.