Cocoa farmers in Ghana, the world’s second-largest cocoa producer, are reportedly holding back their harvest, hoping for a price increase, according to a Reuters report. This bean hoarding, confirmed by several industry sources, is impacting cocoa supplies as farmers anticipate a potential hike in prices amid Ghana’s cocoa sector challenges.
Many farmers have stockpiled large quantities of beans in recent weeks, with one farmer from south-central Ghana reporting he has over 300 bags held back, saying, “I will only sell after Christmas. We want to see if they will increase the price as they said.”
This speculation was fueled by comments from Vice President Mahamudu Bawumia, who hinted at a price adjustment during a speech in Sefwi Wiaso, a prominent cocoa-producing town. Bawumia, who is also a presidential candidate for the ruling New Patriotic Party, later clarified that a price hike would only occur if there were a “significant difference” between prices in Ghana and neighboring Ivory Coast. At present, Ivory Coast’s price, set at 1,800 CFA francs ($3.00) per kilogram, is marginally higher than Ghana’s.
In response to last season’s sharp drop in cocoa output, largely due to smuggling, Ghana’s cocoa regulator, Cocobod, increased the fixed farmgate price by nearly 45% to 48,000 cedis (around $3,000) per metric ton for the 2024/25 season. However, Cocobod’s CEO, Joseph Aidoo, stated that any further price adjustment would depend on the stability of the Ghanaian cedi, as a decline in the currency could cut into farmers’ income.
While the farmers hold out for potential price changes, the slowdown in cocoa sales is apparent. A district manager for one of the country’s largest licensed cocoa buyers noted that purchases have slowed, as many farmers are opting to keep their beans until prices rise. This hesitation has even led some farmers to request returns of beans they had previously sold.
Cocobod, facing the pressure of accumulated debt, is urging farmers to sell. Samuel Adimado, president of Ghana’s cocoa buyers’ association, expressed skepticism about the sustainability of bean hoarding, suggesting that farmers will eventually release their stocks unless smuggling increases.
The unfolding situation highlights the delicate balance Ghana faces in supporting farmers while managing the global cocoa supply chain. As the hoarding trend continues, all eyes are on the Ghanaian government and Cocobod’s next steps.
