The Minority in Parliament has issued a pressing demand for an immediate increase in the farm-gate price of cocoa, in light of the soaring global market prices.
With cocoa prices reaching an unprecedented high of $10,000 per ton due to a notable global shortage, the caucus has expressed deep concern over the deteriorating economic plight of Ghanaian cocoa farmers.
The shortage, attributed to a significant reduction in cocoa output from Ghana and Cote D’Ivoire—who jointly account for around 70% of the world’s cocoa production—has brought Ghana’s cocoa production for the 2023/2024 crop season to a historic low of about 450,000 metric tons.
In a statement, Ranking Member on the Parliamentary Select Committee on Food, Agriculture, and Cocoa Affairs, Eric Opoku, argues this represents the lowest production level in over two decades.
“The sharp decline in Ghana’s cocoa production volumes under the Akufo-Addo/Bawumia NPP government is alarming. Our farmers are suffering, and their living conditions continue to worsen day by day due to this decline,” stated Mr. Opoku.
He emphasized that without a significant increase in farm-gate prices, the hardships faced by cocoa farmers will only intensify.
Alluding to the disparity between global and local cocoa prices, the Minority caucus pointed out that while cocoa is sold on the international market at about GH¢8,125 per bag, Ghanaian farmers receive only GH¢1,308 per bag from the government.
This gap, they argue, is a clear exploitation of the farmers’ efforts and a reflection of the government’s mismanagement of the cocoa sector.
“The situation is exacerbated by the government’s failure to offer competitive prices, leading to significant losses through smuggling,” Mr. Opoku added, referring to the nearly 150,000 metric tons of cocoa lost to smuggling last year, valued at almost $400 million.
The statement also criticized COCOBOD’s increasing administrative expenses and alleged mismanagement, including the controversial purchase of expensive iPad keyboards for its Board of Directors, as evidence of misplaced priorities detrimental to the welfare of cocoa farmers.
The Minority caucus insists that aligning farm-gate price with the current world market rates is not only fair but crucial for revitalizing the cocoa sector, preventing smuggling, and incentivizing farmers amid ongoing industry challenges.