The Ghana Civil-Society Cocoa Platform (GCCP) in its review of the 2023/2024 Cocoa season has recommended that “the minimum farm-gate price per tonne of cocoa beans for the 2024/2025 cocoa season must not be less than GH57,320 (using an exchange rate of $1:GH15.65) which should translate to minimum GH3,583 per bag (64kg) of cocoa beans”.
This proposed 65-70% price hike is part of the coalition’s efforts to enhance the welfare of cocoa farmers in Ghana.
The GCCP emphasized the urgent need for this adjustment, warning that failure to implement a fair pricing structure could destabilize the downstream cocoa supply chain and affect the livelihoods of ordinary cocoa farmers who rely on these buyers for their survival.
The coalition also expressed concerns about the financial sustainability of local Licensed Buying Companies (LBCs). It warned that delays in the disbursement of syndicated loans and high loan rates from banks are weakening the LBCs’ ability to pre-finance cocoa purchases.
According to the GCCP, these financial strains could lead to a collapse of these local companies, which would further destabilize the cocoa supply chain and jeopardize the income of farmers.
Obed Owusu-Addai, Co-Coordinator of the GCCP, urged the Ghana Cocoa Board (COCOBOD) to expedite the disbursement of syndicated loans to LBCs. He noted that delays experienced during the 2023/2024 season forced these companies to rely on expensive bank loans, which severely impacted their profit margins.
Owusu-Addai cautioned that, while COCOBOD’s initiative to involve major players in the industry is commendable, care must be taken to ensure that local companies are not neglected, as this could lead to their collapse.
Despite acknowledging some progress through various initiatives, such as the rehabilitation of cocoa farms and the introduction of Productivity Enhancement Programmes, the coalition highlighted ongoing issues. Reports of nepotism and political interference in implementing these programmes have resulted in widespread apathy and, in some cases, active sabotage in certain communities across the country.
The GCCP calls for immediate corrective measures to address these challenges and ensure the long-term sustainability of Ghana’s cocoa industry.
