GHANA – Cocoa farmers in Ghana are hoarding produce in anticipation of higher prices, putting pressure on supply deficit to a global cocoa market that is looking to recover from last season’s disastrous harvests.
A dozen farmers, buyers and officials from state regulator Cocobod confirmed the practice, with some blaming it for a slowing of bean purchases but many link it to a statement from one of the country’s prominent political leaders.
An industry sources told Reuters that farmers were reacting to comments by Vice President Mahamudu Bawumia, who told supporters of the ruling New Patriotic Party four weeks ago that the government would raise prices for farmers.
“I have more than 300 bags, but I won’t sell,” said a cocoa farmer in south-central Ghana, who asked not to be named. “I will only sell after Christmas. We want to see if they will increase the price as they said.”
Bawumia, who is running for the presidency in the Dec. 7 elections, has since said his comments had been misunderstood.
However, local media quoted Bawumia as saying the government would bring the farmers’ price on par with Ivory Coast’s.
Speaking to Reuters, Bawumia said there would only be a price adjustment in the case of a “significant difference” between the two countries’ prices.
Cocobod CEO Joseph Aidoo told local media that the farmgate price will be raised if the Ghanaian cedi currency depreciates, eroding farmers’ income.
Despite that, Samuel Adimado, president of Ghana’s cocoa buyers’ association said the current price was optimal for farmers and would help Cocobod clear its debts.
Cocobod has highlighted that Ghana lost more than a third of its 2023/24 cocoa output to smuggling.
In a bid to boost farmer incomes and deter smuggling, Ghana raised the fixed farmgate price by nearly 45% to 48,000 cedis (just under US$3,000), per metric ton for the 2024/25 season, which opened in September.
However, Ivory Coast, Ghana’s neighbour and the world’s biggest cocoa grower, raised its price to 1,800 CFA francs ($3.00) per kilogramme, just slightly above Ghana’s.
Both countries, accounting for more than 40% of the world’s cocoa exports, are currently signatories to an agreement to cooperate on production, research and sales policy to help raise cocoa prices and improve the livelihoods of cocoa farmers in Africa.
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