Shockwaves continue to ripple through Ghana’s cocoa heartland following what many farmers describe as an unprecedented and painful mid-season cut in the producer price of cocoa beans.
Across major cocoa-growing regions, anger is simmering.
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For the first time in living memory, farmers say they are witnessing a direct downward adjustment of what they earn per bag of cocoa within a season.
Effective February 12, the government reduced the price of a bag of cocoa from GH¢3,625 to GH¢2,587 — a staggering loss of GH¢1,038 per bag, representing a 28.6% cut.
Similarly, the price per tonne has fallen from GH¢58,000 to GH¢41,392, marking a GH¢16,608 decline.
The reaction has been swift and emotional. Young and old farmers, men and women, have taken to radio stations, Television stations, community forums and social media to vent their frustration, accusing authorities of betrayal at a time when rural households are already stretched by high production costs and economic hardship.
Many farmers are demanding that the government immediately reverse what they describe as the harshest economic blow they have ever experienced.
Maintain the old price if you cannot increase it
Farmers argue that successive governments, regardless of political affiliation, have traditionally either increased or at the very least maintained cocoa producer prices — even during periods of global price downturns — as a protective buffer for growers.
They pointed out that the GH¢3,625 price announced last year for the 2025/2026 season should have been maintained for the remainder of the season, as has been done in the past when global cocoa prices weakened.
Others insist that if the current administration under President John Mahama cannot sustain GH¢3,625, then it should at least maintain the GH¢3,100 inherited from the previous Akufo-Addo government for the 2024/2025 season.
Under the new arrangement, farmers are to receive 90% of the achieved gross Free on Board (FOB) price of $4,200 per tonne.
However, growers noted that this calculation leaves them worse off than the GH¢3,100 they earned last season when the same FOB benchmark of $4,200 was used.
For many, this mathematical contradiction deepens suspicion and fuels resentment.
Rising costs, shrinking earnings
The timing of the cut could not have been worse for cocoa growers.
Production costs have surged due to rising fertiliser prices, higher labour costs, climate-related challenges and the increasing expense of tools and farm maintenance.
Farmers say even previous earnings barely covered these costs, leaving little for household needs, children’s education, healthcare or loan repayments.
Now, with earnings slashed by nearly 28.6%, many fear slipping deeper into poverty.
Some farmers are openly discussing abandoning cocoa for alternative crops such as maize, plantain or cashew.
In border communities, there are renewed murmurs about smuggling beans to neighbouring Côte d’Ivoire, where producer prices, though also recently reduced, remain comparatively higher.
More worryingly, some farmers fear that economic desperation could push vulnerable youth into illegal mining activities, commonly known as galamsey.
Some farmers openly said they will sell their cocoa farms to illegal miners.
As the mid-crop harvest continues, anger and disappointment in cocoa-growing communities is palpable.
Farmers speak of tears flowing not just from disappointment but from a profound sense of abandonment.
Global price crash and forward sales debate
The government’s decision comes against the backdrop of a dramatic plunge in global cocoa prices.
International prices, which soared between $7,200 and $12,000 per tonne in late 2024, have recently dropped to about $3,700 per tonne.
Ghana’s cocoa sector traditionally relies on a forward sales system — a mechanism designed to manage price risk, stabilise stocks and secure syndicated loans for the season.
Under this arrangement, producer prices are typically fixed ahead of time, shielding farmers from sudden global price fluctuations.
Farmers are protected from price reductions once a producer price is announced, though they do not benefit if world prices rise after the announcement.
However, analysts argue that the recent 28.6% reduction effectively undermines the protective principle of forward sales. The move has sparked speculation that authorities may be drifting toward spot market sales, although no official announcement has confirmed such a shift.
The uncertainty is compounding anxiety in farming communities. Many growers report that they have significant stocks of beans at home but cannot find buyers after the district offices of Licensed Buying Companies reportedly closed their purchasing outlets.
Without ready buyers and with reduced prices, farmers say they feel cornered.
The backbone of Ghana’s economy
The intensity of the anger reflects not only personal hardship but also the central role cocoa plays in Ghana’s national life.
For over a century, cocoa has been widely regarded as one of the backbones of Ghana’s economy.
Since the colonial era, the crop has consistently contributed to national revenue, rural development and foreign exchange earnings.
It is estimated that about one million Ghanaians cultivate cocoa across approximately 1.5 million hectares of land.
3 million livelihoods depend on cocoa
Including dependents, more than three million people rely directly or indirectly on cocoa for their livelihoods.
Beyond rural households, cocoa is a pillar of Ghana’s macroeconomic stability.
Cocoa exports generate more than $2 billion annually and account for roughly 25 to 30 per cent of the country’s foreign exchange earnings.
Ghana remains the world’s second-largest cocoa producer after Côte d’Ivoire, making the crop central to its standing in global agricultural trade.
Crucially, Ghana retains 100% of the foreign exchange earned from cocoa exports, unlike certain other commodities where foreign investors repatriate substantial profits.
Cocoa dollars, therefore, flow directly into national reserves, supporting the importation of essential goods and helping stabilize the Ghanaian cedi.
When cocoa earnings decline, the effects are often felt quickly in the foreign exchange market.
Reduced forex inflows can weaken demand for the cedi, placing additional pressure on the currency.
A risk to production and the Cedi
Analysts warn that sustained farmer dissatisfaction could have far-reaching economic consequences.
If significant numbers of farmers reduce investment in their farms, switch to alternative crops or abandon cocoa altogether, national production could decline.
Such a reduction would not only affect rural incomes but also dent export revenues and foreign exchange inflows.
Lower cocoa output would mean fewer dollars entering the economy — a development that could intensify pressure on the cedi, particularly at a time when macroeconomic stability remains delicate.
Ghana’s status as the world’s second-largest cocoa producer could also be threatened if output drops substantially.
That would weaken the country’s leverage in global cocoa markets and undermine long-term agricultural competitiveness.
Reverse it or lose our trust
Across cocoa-growing communities, one message rings loud and clear: reverse the reduction.
Farmers argue that maintaining stable producer prices has historically been both an economic and political safeguard — discouraging smuggling, rewarding hard work and sustaining trust between government and growers.
By cutting prices mid-season, they say, trust has been shaken.
The fear among many growers is that if this decision stands, it could mark a turning point — not only for their incomes but for Ghana’s cocoa future.
The coming weeks will reveal whether the government reconsiders its stance or stands by the reduction.
But for now, the cocoa belt is restless, wounded and watching closely — aware that what is at stake is not merely the price of a bag of beans, but the economic backbone of a nation.
