Ghanaian cocoa farmers are urging leaders across West Africa to capitalize on the current surge in international cocoa prices to strengthen their industry.
They see this as a crucial opportunity for farmers in the region to fully benefit from cocoa production, leading to improved living conditions and sustainable farming practices.
This appeal comes amid significant fluctuations in cocoa prices, which have made it more costly to maintain positions in cocoa futures.
The heightened volatility has prompted traders to close their positions, reducing market liquidity and increasing the risk of large price swings.
Global cocoa prices have experienced an exceptional rally this year, reaching record highs last Friday, April 26 due to concerns over supply shortages.
To secure cocoa supplies, cocoa processors worldwide are paying premium prices in the cash market, fearing that West African suppliers might default on supply contracts.
According to Bloomberg, the Ghana Cocoa Board is in talks with major cocoa traders to delay the delivery of 150,000 to 250,000 metric tons of cocoa until the next season due to a shortage of beans.
Cocoa prices have surged sharply since the start of the year, driven by the most severe supply shortage in four decades.
Leticia Yankey, Founder and Chairperson of the Cocoa Mmaa cooperative, composed entirely of women cocoa farmers, emphasized the need to strengthen trading and pricing mechanisms.
She proposed that regulators in Ghana and Côte d’Ivoire establish a fair farm gate price to support cocoa farmers and combat poverty in cocoa-growing communities across West Africa.
Yankey explained that a fair farm gate price would promote honesty and transparency among Ghanaian and Ivorian cocoa farmers, encouraging increased cocoa production and improving economic conditions in the region.
This approach could significantly benefit farmers and contribute to the sustainability of the cocoa industry.
Ms Yankey was speaking at the 5th World Cocoa Conference in Brussels, Belgium organized by the International Cocoa Organisation (ICCO) under the theme “Paying more for a Sustainable Cocoa”.
The conference convened various stakeholders of the cocoa industry, such as policymakers, financial institutions, logistics companies, and international aid and development agencies from around the globe.
The aim was to facilitate discussions, share perspectives, and collaborate on finding solutions to ensure the long-term sustainability of the cocoa sector.
Declining Cocoa Production
In the past two crop seasons, Ghana has fallen short of its average annual cocoa production goal of 850,000 metric tonnes. This shortfall has had a detrimental effect on local processing and export activities.
According to Ms. Yankey, unfavorable climate conditions in cocoa-growing areas have significantly contributed to reduced cocoa production and lower yields in these regions.
“We are calling on our governments to intervene immediately because for every step you need a specific weather condition and specific farm inputs to succeed. Climate change has disrupted the process of managing a cocoa farm, you need rain at a point in time, and you need the sun and humidity at a point in time as well to dry.”
Leticia Yankey
Ishmael Pomasi, Chairman of the Cocoa Abrabopa Cocoa Farmers Cooperative, highlighted that many Ghanaian farmers are failing to meet production targets because of unpredictable rainfall patterns in West Africa.
He expressed concerns about the adverse effects of climate change on cocoa production, particularly as agricultural land is diminishing due to illegal mining activities. This combination of factors is posing significant challenges to cocoa farming in the region.
“The delays in rains have brought us a great loss. It has not been easy for myself and other farmers as we lost almost all our investments in the farming business.”
Ishmael Pomasi
Amid supply shortages and climate challenges, farmers urge swift government action to harness cocoa price surge for industry sustainability and prosperity.
