Ghana’s Cocoa Farmers Hold Back Harvest in Anticipation of Price Increase
Cocoa farmers in Ghana, the world’s second-largest producer of cocoa, are reportedly stockpiling their harvest, hoping for higher prices in the coming months. Sources across the cocoa sector—including farmers, buyers, and officials at Ghana’s Cocoa Board (Cocobod)—confirmed to Reuters that many farmers are withholding beans, slowing supply to the market as global cocoa prices remain volatile after last season’s poor yield.
Farmers’ anticipation for a price rise stems from recent comments by Ghana's Vice President Mahamudu Bawumia, who, during a political rally, suggested that farmgate prices for cocoa might increase to align with those in neighboring Ivory Coast, the world’s top cocoa producer. Although Bawumia later clarified that prices would only be adjusted if a “significant difference” arose between the two countries’ rates, expectations for a price boost persist among farmers. Currently, Ivory Coast’s cocoa price is slightly above Ghana’s rate of approximately $3,000 per metric ton.
Ghana raised its fixed farmgate price by nearly 45% in September to discourage smuggling and support farmers amid the global price surge. Smuggling has been a persistent issue, with Cocobod estimating that over a third of Ghana’s 2023-24 cocoa output was illegally transported across borders. The price increase aims to deter this practice and prevent further declines in Ghana’s cocoa production, which reached a 20-year low last season.
The response from farmers has been swift. One farmer in south-central Ghana reported storing over 300 bags of cocoa beans, opting to sell only after the Christmas season when he expects prices may increase. Across key cocoa-growing regions, similar accounts have surfaced, with some farmers even requesting that beans they had already sold be returned in anticipation of a possible price hike.
The slowdown in cocoa supply has had mixed reactions among industry stakeholders. Cocobod CEO Joseph Aidoo suggested that an increase in the farmgate price might be necessary if the Ghanaian cedi continues to depreciate, which would reduce farmers’ earnings in real terms. Meanwhile, Samuel Adimado, president of Ghana's cocoa buyers’ association, maintained that the current pricing strategy provides farmers with fair income while enabling Cocobod to manage its debts effectively.
A regional cocoa buyer in Suhum noted that purchases had decreased noticeably in October as farmers awaited a price change. He indicated that the uncertainty around prices has made farmers reluctant to release their beans, further tightening the cocoa supply to the market.
While the strategy of holding back beans might give farmers temporary leverage, some industry leaders question its long-term sustainability. According to Adimado, most farmers will eventually sell, particularly if they face financial pressures or storage limitations. However, as farmers weigh these challenges, the anticipation of a price increase continues to shape the dynamics of Ghana’s cocoa market, with implications for both local industry players and global cocoa prices.
As the December elections approach, how Ghana’s government manages cocoa pricing could be crucial, not only for farmer incomes but also for stabilizing the country’s key agricultural sector amid volatile global market conditions.
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