There are fears that this may cause pressure on the global cocoa market as Ghana is the world’s second largest cocoa producer with so many economies dependent on the country for cocoa beans.
“I have more than 300 bags, but I won’t sell, I will only sell after Christmas. We want to see if they will increase the price as they said.” a cocoa farmer told Reuters.
The hoarding has been linked to a statement credited to Ghana’s vice president and the leading presidential candidate in the nation’s December 2024 elections, Mahamudu Bawumia.
Bawumia recently told his supporters during a campaign tour, that the government would raise prices for farmers. According to him, the price adjustment would cushion Ghanaian cocoa farmers and also prevent the possibility of Ghana’s cocoa being smuggled into Ivory Coast.
Ghana and Ivory coast are the world’s largest cocoa producers and account for more than 40% of the world’s cocoa exports. Both countries are currently signatories to an agreement to cooperate on production, research and sales policy to help raise cocoa prices and improve the livelihoods of cocoa farmers in Africa.
A price increase in Ivory Coast would likely lead to a corresponding increase in Ghana, and vice versa, as a significant price disparity between the two countries could motivate cocoa smuggling from one country to the other. This is because cocoa farmers and traders may seek to take advantage of the higher prices in the neighboring country, potentially disrupting the cocoa market and economies of both nations.
The vice president, while responding told Reuters, that the country would only opt for a price increment if there is a “significant difference” in the product prices between both countries.
“As it is, there is no significant difference, so we are not adjusting prices,” he said.
The CEO of Ghana Cocoa Board, Joseph Aidoo however, said there is a possibility of the farmgate price of cocoa increasing if the Ghanaian cedi continues to depreciate, thereby reducing farmers’ earnings.
