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Cocoa price collapse leaves farmers in despair
Ghana and Ivory Coast, the world's top cocoa producers, are grappling with a severe financial crisis after global cocoa prices plunged, leaving hundreds of thousands of farmers unpaid for months. Many say they cannot afford basic necessities, including healthcare and education, as state-regulated prices now exceed what international buyers are willing to pay.
Human toll of the crisis
Akosua Frimpong, a 52-year-old cocoa farmer from Ghana's western village of Suhenso, recounts how her husband died at home in February after she couldn't afford medical treatment. "My husband fell sick, and I couldn't get money to take him to the hospital," she told the BBC. Frimpong blames the Ghana Cocoa Board (Cocobod) for the financial strain, as companies licensed to purchase the crop have struggled to sell it abroad.
The payment delays have affected an estimated 800,000 farmers, disrupting rural economies and leaving families in dire straits. In Ivory Coast, farmers like Sella Aga Josiane, 38, say they can no longer pay school fees for their children, while others face hunger. "I don't know how I'll feed my 10 children or support their education," Josiane said.
Why prices crashed
Cocoa prices surged in 2024 due to supply concerns, but a global harvest rebound and weaker demand led to a sharp decline. Chocolate manufacturers responded by reducing cocoa content in products and shrinking bar sizes. While this may eventually lower chocolate prices for consumers, it has worsened the crisis for West African farmers, who were already struggling to cover production costs.
In Ghana, Cocobod set the 2023-24 farmgate price at nearly $5,300 per tonne, but global prices have since fallen below that level. The shortfall has ballooned Cocobod's debt to $3 billion, forcing the board to slash the guaranteed price to around $3,500 per tonne-still above current market rates.
Government and industry responses
Cocobod officials took a 20% pay cut in February (10% for senior staff) to ease financial pressure, though farmers argue the savings should have gone toward paying them. "If they were reducing their salaries to add up to our cocoa prices, that would have been brilliant," said Nana Obodie Boateng Bonsu, president of the Concerned Cocoa Farmers Association.
Ghana's government has announced plans to process more cocoa domestically to boost revenue, but farmers like Robert Addae, who has cultivated cocoa for 14 years, say the price cuts will devastate their livelihoods. "The prices of farm inputs and labor haven't reduced, so this will adversely affect us," the 62-year-old said.
Ivory Coast, the world's largest cocoa producer, faces similar challenges. The Coffee and Cocoa Council recently halved the farmgate price to stimulate sales, but warehouses in towns like Bangolo remain filled with unsold beans. Bahily Bakouli Issiaca, a cooperative member, said lorries loaded with cocoa sacks have been parked for weeks. "More than 800 farmers rely on us, but this year it's been very difficult to sell," he told the BBC.
Economic ripple effects
Cocoa accounts for 7% of Ghana's GDP and 15% of its foreign exchange earnings, making the sector's health critical to the national economy. In Ivory Coast, the crisis threatens to leave 200,000 tonnes of cocoa unsold by the end of March if conditions persist. Farmers describe the situation as the worst in over a decade, with many fearing they won't recover their investments.
"We live through cocoa," said Ba Siba Fabrice, a 35-year-old farmer near Bangolo. "When there is no money in a household, there is no peace."
What's next
Both countries are exploring long-term solutions, including local processing and debt restructuring, but immediate relief for farmers remains uncertain. Cocobod's spokesperson Jerome Sam acknowledged payment delays but said processing had resumed. Meanwhile, farmers continue to demand fair compensation for their crops amid the industry's turmoil.
