Ghana’s decision to maintain cocoa producer prices despite a recent hike in neighboring Côte d’Ivoire has sparked warnings of intensified smuggling, with experts urging tighter border controls to safeguard national revenue.
Edward Kareweh, former General Secretary of the General Agricultural Workers’ Union, cautioned that the price gap creates a lucrative incentive for cross-border trafficking, threatening Ghana’s cocoa output and global market share.
Côte d’Ivoire, the world’s top cocoa producer, recently increased its farmgate prices, widening the disparity with Ghana’s unchanged rates. Kareweh argued that this imbalance emboldens smugglers to transport Ghanaian cocoa across the western border for higher profits. “When producer prices are lower here, the motivation to smuggle becomes very high,” he told The High Street Journal. “Even with motivation, smuggling can be curbed if security measures are robust. Without enhanced enforcement, Ghana risks losing critical revenue.”
The Ghana Cocoa Board (COCOBOD) has defended its stance, citing delays in price reviews due to an incomplete governing board. However, critics argue that prolonged inaction could exacerbate existing vulnerabilities. Historically, cocoa smuggling has drained Ghana’s foreign exchange earnings and undermined efforts to stabilize the sector, which employs nearly 800,000 farmers.
Kareweh called for coordinated action between COCOBOD, national security agencies, and border patrol units to ramp up surveillance along smuggling-prone corridors, particularly the western border with Côte d’Ivoire. “This demands urgency,” he emphasized. “Every smuggled bag impacts our economy.”
The situation underscores broader challenges in harmonizing regional agricultural policies. While Ghana and Côte d’Ivoire collaborate under the Cocoa Initiative to combat child labor and deforestation, price synchronization remains unresolved. Analysts note that without aligned pricing strategies, smuggling will persist as a symptom of economic asymmetry.
Ghana’s cocoa sector, a pillar of its economy, contributes roughly $2 billion annually in export earnings. Yet, systemic issues—from climate shocks to aging farms—have strained production. The current price dilemma adds pressure on authorities to balance farmer welfare, competitive pricing, and fiscal sustainability.
As global cocoa demand rises, Ghana’s ability to secure its borders and align policies with regional partners may determine its capacity to retain its position as a leading producer. For now, the focus shifts to whether COCOBOD’s pending board will prioritize price adjustments or leave the sector exposed to smuggling’s costly fallout.
