Cocoa Wars Escalate as Ghana's Farmers Demand Higher Price
Cocoa farmers in Ghana are up in arms over the recently announced producer price for the 2025/2026 season, with a coalition of farmers threatening to bar officers of the national regulator from their farms in protest. The farmers are demanding a higher price, citing the government's promise to pay 70% of the free-on-board price used in international trade.
The Price Dispute
The government announced a fixed farmgate price of 51,660 cedis ($4,783) per ton for the 2025/2026 season, or 3,228 cedis per 64 kg bag, which is only a 4% increase from the previous season. However, farmers say this price falls short of the government's promise, which would have yielded around 3,800 cedis per bag. Over 300,000 farmers have expressed anger over what they consider inadequate compensation, with some saying they would smuggle their entire harvest to the Ivory Coast if they lived near the border, where prices are perceived to be more favorable.
Threat of Mass Smuggling
The coalition of farmers, led by Theophilus Tamakloe, vice president of the Ghana Cooperative Cocoa Farmers and Marketing Association, warns that the low prices could fuel illegal smuggling to neighboring countries like the Ivory Coast and Togo. According to Kwame Alex, a Best Cocoa Farmer award winner, there's a price differential of around 700 cedis between Ghana and the Ivory Coast, creating incentives for smuggling. "If I'm close to the Cote d'Ivoire border, probably all my cocoa beans will go to Cote d'Ivoire because the government has not been fair to us," Tamakloe said.
Consequences of Smuggling
Cocoa smuggling in Ghana results in significant revenue losses, estimated at $400 million annually due to the smuggling of 100,000 metric tons of cocoa. This not only affects the national economy but also impacts farmers' livelihoods, as they suffer from lower wages and insecure income. Moreover, smuggling disrupts the purchase and delivery of agricultural inputs to cocoa farmers, making it challenging for them to grow premium cocoa.
Government Promise vs. Reality
The Minority Caucus in Parliament has demanded an immediate increase in the cocoa producer price to 6,000 cedis per 64 kg bag, citing the government's promise to pay farmers 70% of the Free-On-Board price. They warned that failure to act swiftly could result in economic sabotage, cross-border smuggling, and a betrayal of Ghana's hardworking cocoa farmers.
Impact on Farmers
Cocoa farmers in Ghana are grappling with stagnant or declining incomes despite global cocoa prices soaring to unprecedented heights. The lack of transparency in COCOBOD's operations and the low prices paid to farmers have sparked frustration among farmers, who feel they are not receiving a fair share of the export value.
Credit - Reuters
