Cocoa farmers in Ghana, the world’s second-largest cocoa producer, are stockpiling beans in anticipation of higher prices, which could tighten supplies in the global market as it attempts to rebound from last season’s disappointing harvests. Industry sources revealed to Reuters that while the extent of this hoarding remains unclear, numerous farmers, buyers, and officials from the state regulator Cocobod have confirmed the trend, citing a slowdown in bean purchases as a result.
An anonymous farmer from south-central Ghana stated, “I have more than 300 bags, but I won’t sell. I plan to hold off until after Christmas to see if the prices rise as expected.” This sentiment reflects a broader reaction among farmers to recent comments made by Vice President Mahamudu Bawumia, who assured supporters of the ruling New Patriotic Party that the government intends to raise cocoa prices. Speaking in Sefwi Wiaso, a major cocoa-producing region, Bawumia is currently campaigning for the presidency in the upcoming December 7 elections. He later clarified that his comments were misunderstood.
According to officials from Cocobod, Ghana’s cocoa output for the 2023/24 season has suffered significantly from smuggling, resulting in the loss of over a third of production and bringing total output to its lowest level in over two decades. This situation has contributed to soaring global cocoa prices. To enhance farmers’ incomes and combat smuggling, the government has increased the fixed farmgate price by nearly 45% to 48,000 cedis (approximately $3,000) per metric ton for the 2024/25 season that began in September.
In contrast, neighboring Ivory Coast, the largest cocoa producer globally, raised its price to 1,800 CFA francs ($3.00) per kilogram, slightly surpassing Ghana’s price. Bawumia indicated that the government would consider aligning Ghana’s cocoa prices with those of Ivory Coast. However, he clarified to Reuters that price adjustments would only be made in the case of a “significant difference” between the two countries’ prices, asserting that such a difference does not currently exist.
Despite these assurances, many farmers remain hopeful for a price increase. A district manager for one of Ghana’s top five licensed cocoa buyers noted a decrease in purchases during October, as farmers have chosen to retain their beans in anticipation of higher prices. This situation underscores the complexities within Ghana’s cocoa sector as it navigates market challenges and seeks to support its farmers.
