Cocoa prices are sliding to multi-decade lows, putting West African producers under pressure as global demand remains subdued.

The most-active cocoa contract in New York dropped to $5,888 a ton this week, set for its eighth consecutive weekly decline—the longest streak since May 1999. Ivory Coast and Ghana, the world’s top producers, have seen farmgate prices rise slightly, yet the surge in output is keeping overall returns under pressure.

Analysts attribute the slump to expectations of a larger global surplus in the 2025-26 season, combined with cautious chocolate manufacturers who are processing fewer beans. Many have reformulated recipes to offset the impact of previous record-high cocoa prices, limiting immediate demand.

Rainfall across West Africa has been favourable, encouraging farmers to deliver more beans for export and processing, which adds to downward pressure on prices, according to Rabobank analysts including Carlos Mera.

While global demand may gradually pick up, manufacturers are expected to continue working through existing stocks of higher-cost beans, meaning West African producers are unlikely to see a quick recovery in prices.