Cocoa Advocacy group calls on Govt to address price disparities

The Cocoa Development Advocacy Platform (CDAP) has called on the government to decisively address the widening price gap between Ghanaian and Ivorian cocoa, warning that the disparity is fueling cross-border smuggling and threatening the country’s cocoa sector.

According to CDAP in a statement dated Thursday, May 15, while cocoa prices in Côte d’Ivoire stood at the equivalent of GHS 3,113 per bag at the end of last year—just GHS 13 higher than Ghana’s GHS 3,100, the West African neighbour has since raised its farmgate price to GHS 3,767.29 per bag.

This, they believe has created a sharp price difference of GHS 667.29, incentivizing Ghanaian cocoa farmers to smuggle their produce across the border in search of better earnings.

“This development threatens the integrity of Ghana’s cocoa value chain and risks undermining the country’s cocoa revenue base,” CDAP warned. “We urge the government to act swiftly and decisively to protect the livelihoods of our farmers and the future of our cocoa industry.”

The advocacy platform is also calling on government to fulfill its longstanding commitment to pay farmers 70% of the prevailing world market price for cocoa.

When combined with the $25 Living Income Differential (LID) per bag, CDAP argues this would ensure farmers receive a fair and sustainable farmgate price of approximately GHS 6,000 per bag.

According to CDAP, such a pricing model is essential for addressing the deep-seated issues of poverty and exploitation within Ghana’s cocoa sector.

Cocoa remains a backbone of Ghana’s economy, significantly contributing to export revenues and rural employment.

CDAP believes that fair and regionally competitive pricing will help insulate farmers from global market volatility and exploitation by middlemen, while encouraging long-term investment in the sector.

The group also warned that failure to act could result in broader social and economic consequences, including declining productivity, rural poverty, and increased rural-urban migration.

CDAP stressed that the current disparities in pricing have already led to rampant smuggling, which erodes state revenue and undermines the long-term viability of the cocoa sector.

A part of the statement reads, “CDAP is once again calling on the government to honor its longstanding commitment to purchase
cocoa at 70 percent of the prevailing world market price. The platform emphasizes that when this pricing formula is combined with the $25 Living Income Differential (LID) per bag, farmers should receive a fair and sustainable farmgate price of approximately GHS 6,000 per bag.”

“Such a pricing model aligns with international standards for equitable trade and provides farmers with a more secure and dignified livelihood. It also addresses persistent concerns around poverty and exploitation in Ghana’s cocoa sector. Protecting cocoa farmers’ earnings through competitive pricing is not only vital for sustaining livelihoods, but it also plays a critical role in Ghana’s economic development. Cocoa is a cornerstone of the national economy, significantly contributing to export revenues and employment particularly in rural areas.”