Ghana’s government has significantly increased the share of global cocoa revenues paid to farmers, bumping their earnings from 60% to 70% of the international market price in a move aimed at revitalizing the sector.
Announced by Minister of Food and Agriculture Eric Opoku via a Sunday Facebook post, the policy seeks to address longstanding challenges threatening Ghana’s position as the world’s second-largest cocoa producer.
Cocoa, which accounts for roughly 20% of Ghana’s export revenue, has faced mounting pressures in recent years. Plummeting global prices, climate-related crop failures, aging farms, and widespread smuggling to neighboring countries—where farmers often secure higher payouts—have eroded production and farmer morale. The revised payout structure, effective immediately, is designed to incentivize growers to remain in cocoa cultivation rather than pivot to more lucrative crops like rubber or illegal mining.
“This adjustment recognizes the indispensable role cocoa farmers play in our economy,” Opoku stated, framing the hike as both a financial lifeline and a strategic effort to safeguard Ghana’s $2 billion annual cocoa exports. The sector supports nearly 800,000 smallholder farmers, many of whom operate on razor-thin margins. By narrowing the gap between local and cross-border prices, officials also hope to stem the flow of smuggled beans to Ivory Coast and Togo, where farmers historically earn higher rates.
The decision arrives amid broader efforts to modernize Ghana’s agricultural sector. Critics have long argued that underpaying farmers perpetuates cycles of poverty, stifles farm reinvestment, and drives youth migration away from rural areas. With improved earnings, growers could invest in climate-resilient practices, replace aging trees, and adopt productivity-boosting technologies—key steps to reversing a recent production slump that saw output drop 14% last season.
While the policy has been broadly welcomed, industry analysts caution that systemic hurdles remain. Persistent illegal mining, which has encroached on arable land, and volatile global prices driven by speculative trading continue to cloud the sector’s outlook. Nonetheless, the raise signals a sharper focus on farmer welfare ahead of the 2024-25 harvest season.
“This isn’t just about fairness—it’s about survival,” said Kwame Asare, a cocoa cooperative leader in the Ashanti region. “If farmers can’t feed their families, Ghana’s cocoa legacy disappears.”
The government’s recalibration aligns with its pledge to leverage agriculture for rural development and food security. For now, the hike offers a glimmer of stability to farmers like Adwoa Mensah, a third-generation grower. “Maybe now I can finally repair my drying sheds,” she said. “But we’ll believe it when the checks arrive.”
As global chocolate demand grows, Ghana’s gamble hinges on a simple equation: better pay today to ensure there’s still cocoa to harvest tomorrow.
