Falling cocoa prices could mean that authorities in Ivory Coast have to cut payments to growers, heightening risks for global markets as well as the domestic economy. The government warnings follow a wave of defaults by local exporters who had bet on higher prices, pushing cocoa futures even lower and costing the government more than $300m. The present situation now has parallels to the 22 2017's crisis that resulted in farmers' payments falling by half and the marketing system going bankrupt.
Falling cocoa prices could mean that authorities in Ivory Coast have to cut payments to growers, heightening risks for global markets as well as the domestic economy. The government warnings follow a wave of defaults by local exporters who had bet on higher prices, pushing cocoa futures even lower and costing the government more than $300m. The present situation now has parallels to the 1980's crisis that resulted in farmers' payments falling by half and the marketing system going bankrupt.