In a recent critique, Selorm Branttie, Vice President of IMANI Centre for Policy and Education, has raised serious concerns about the current state of Ghana’s cocoa sector, particularly in the context of the NPP government’s claims regarding price increases for cocoa farmers.

Mr Branttie’s detailed analysis shed light on how, despite the government’s rhetoric, cocoa farmers are worse off than they were under previous administrations due to the international cocoa market dynamics, challenges with illegal mining (galamsey), and rising production costs.

“The NPP should be shy about comparing the cocoa farm gate price at 3000/bag, which was just last week, to the 450/bag in 2016 as some achievement. It is not, and it is rather in their interest not to be touting such facts as an achievement”.
Selorm Branttie, Vice President of IMANI Centre for Policy and Education

According to Mr Branttie, the widely celebrated increase in cocoa prices from GHC2,070 to GHC3,000 per bag is not the significant achievement the government has made it out to be.

While this may appear as a victory for cocoa farmers on the surface, he argued that a deeper analysis reveals that the NPP government is actually shortchanging farmers when the global cocoa prices and the cedi’s depreciation are taken into account.

Mr Branttie pointed out that, while the current cocoa price increase may seem significant compared to the GHC450 per bag in 2016 under the NDC, the context in which these prices are set is crucial.

He explained that in 2016, world cocoa prices peaked at $3,200 per tonne, and farmers in Ghana received 56% of the international market price at the time.

However, Mr Branttie indicated that today, despite international cocoa prices reaching an average of $8,000 per tonne in 2023, Ghanaian farmers are only receiving about 37% of the world price with the current GHC3,000 per bag.

Galamsey and Smuggling: Cocoa Production Decline

Beyond pricing, Mr Branttie highlighted two major threats to Ghana’s cocoa sector: smuggling and illegal mining (galamsey).

While smuggling—driven by better prices in neighbouring countries like Côte d’Ivoire and Togo—allows some farmers to earn more, the greater concern, according to Mr Branttie, is galamsey.

He emphasized that illegal mining activities are leading to the destruction of cocoa farms, with many farmers losing trees that are at peak production.

“Smuggling enriches the farmers who can take advantage of market conditions in neighbouring countries,” Mr Branttie noted, but added that the situation with galamsey is far more alarming, as it results in the permanent loss of cocoa-producing lands.

This issue, he argued has compounded the challenges of cocoa production in Ghana, which saw its output soar to over one million tonnes in the 2020/2021 season, only to face a steep decline in the 2022/2023 season.

Estimates according to the IMANI’s Vice President suggest the country could struggle to produce even 500,000 tonnes this year.

Falling Yields and Rising Costs

The Policy Analyst’s analysis also highlighted the grim reality that cocoa farmers are producing significantly less than they were just four years ago, while costs of inputs like fertilizer have surged.

“The cocoa farmer is averagely producing only half the yield of what they produced four years ago,” he asserted, which coupled with rising production costs, has pushed many farmers to the brink of unprofitability.

This harsh economic reality, Mr Branttie posited, is driving young men to abandon cocoa farming altogether in favour of illegal mining, lured by the prospect of earning more through gold extraction.

“They have exchanged the brown beans for gold powder as they are making a simple economic decision… because they must eat,” he added, pointing to the broader socio-economic implications of declining cocoa profitability.

Cocobod Loan and Financial Woes

Adding to the sector’s woes, Mr Branttie referenced the ongoing challenges with COCOBOD’s loan syndication, which has yet to materialize.

The government’s desperate attempts to sell bonds, he claimed, further illustrate the precarious state of the country’s cocoa financing.

In conclusion, Selorm Branttie’s analysis painted a dire picture for Ghana’s cocoa farmers. Despite what he termed the 120% increase in cocoa farm gate prices since the beginning of the year, he asserted that the sector is struggling, and cocoa farmers are far worse off than they were under the previous NDC government.

“Cocoa farmers are not even getting 50% of international pricing,” he stressed, adding that any attempt to compare today’s GHC3,000 per bag to the GHC450 per bag in 2016 is “plain fraud and a mockery of the cocoa farmers’ plight.”

Selorm Branttie’s critique offered a critical assessment of Ghana’s cocoa sector, urging the government to take a more transparent and honest approach to addressing the real challenges facing farmers rather than touting superficial gains.