Sources in the Cocoa industry have reported to Reuters that Cocoa farmers in Ghana are stashing beans in hopes of securing better prices in the near future.
Their action stems from NPP Flagbearer Mahamudu Bawumia’s promise to supporters of the ruling New Patriotic Party four weeks ago that the government would raise prices for cocoa farmers.
It is not fully known how widespread the practice of storing cocoa beans in rural areas is, however, about twelve farmers, buyers, and officials from COCOBOD have acknowledged that the practice is ongoing.
In discussing the practice, one farmer who wished to remain anonymous, confirmed, “I have more than 300 bags, but I won’t sell,” said a cocoa farmer in south-central Ghana, who asked not to be named. “I will only sell after Christmas. We want to see if they will increase the price as they said.”
Ghana lost more than a third of its 2023/24 cocoa output to smuggling, according to Cocobod officials, adding to woes that brought production to a more than two-decade low and helped send global cocoa prices to record highs.
In a bid to boost farmer incomes and deter smuggling, Ghana raised the fixed farmgate price by nearly 45% to 48,000 cedis, or just under $3,000, per metric ton for the 2024/25 season, which opened in September.
However, Ivory Coast – Ghana’s neighbour and the world’s biggest cocoa grower – raised its price to 1,800 CFA francs ($3.00) per kilogramme, just slightly above Ghana’s.
Dr Bawumia, who is running for the presidency in Dec. 7 elections, was speaking in Sefwi Wiaso in southwestern Ghana, one of the country’s biggest cocoa growing towns.
He has since said his comments had been misunderstood.