Cocoa price slump hits farmers across West Africa

Cocoa farmers in Ghana and the Ivory Coast are facing financial hardship as a slump in global cocoa prices has left many unable to sell their crops or receive payment for beans already delivered, BBC News Africa reported on March 9th.

Global cocoa prices surged in 2024 but have since fallen sharply. In Ghana and the Ivory Coast, regulators set the price farmers receive in advance, leaving local prices above what international buyers are willing to pay for the beans.

Farmers in Ghana say delayed payments have had severe consequences. Akosua Frimpong, a cocoa farmer in the village of Suhenso, said the delays meant she could not afford medical treatment for her husband, who died at home aged 52.

She said she was still waiting for payment for the cocoa she had already sold. The delays are thought to affect around 800,000 cocoa farmers nationwide.

The Ghana Cocoa Board (Cocobod), which regulates the sector, acknowledged delays in payments to farmers but said they were now being processed. The board set a guaranteed price of nearly $5,300 per tonne in October, but global prices later fell well below that level, contributing to about $3bn in debt.

The downturn has been linked to strong global harvests and weaker demand, while chocolate manufacturers have reduced cocoa content in some products after earlier price increases.

To address the financial strain, Cocobod said its executive management had taken a 20% pay cut, and senior staff had taken a 10% reduction. The board has also reduced the guaranteed price paid to farmers to about $3,500 per tonne, although this remains above the current international price.

Farmers say the lower price does not cover rising costs such as labour and other overheads. Cocoa accounts for about 7% of Ghana’s GDP and around 15% of its foreign exchange earnings.

The neighbouring Ivory Coast, the world’s largest cocoa producer, is facing similar difficulties. Warehouses in the western town of Bangolo are filled with unsold beans as cooperatives struggle to find buyers.

If the situation continues, around 200,000 tonnes of cocoa could remain unsold by the end of March. Agriculture Minister Bruno Kone announced on March 5th that the price paid to farmers would be cut in half to boost sales.

Farmers say the crisis has left them unable to cover basic expenses such as food and school fees, as unsold cocoa continued to pile up in warehouses across the region.

BBC News Africa, Maghrebi.org