Cocoa farmers in Ghana, the world’s second-largest producer, are hoarding beans in expectation of higher prices, as reported by industry sources to Reuters.
This trend could potentially tighten supplies in a global cocoa market still recovering from last season’s poor harvests.
While the extent of bean hoarding in the countryside remains unclear, numerous farmers, buyers, and officials from the state regulator COCOBOD have confirmed the practice, with some attributing a slowdown in bean purchases to it.
One cocoa farmer from south-central Ghana, who requested anonymity, stated, “I have more than 300 bags, but I won’t sell. I will only sell after Christmas. We want to see if they will increase the price, as they said.”
The farmers’ actions appear to be a response to comments made by Vice President Mahamudu Bawumia, who indicated that the government plans to raise prices for farmers during a speech to supporters of the ruling New Patriotic Party about four weeks ago.
Bawumia, who is a candidate in the upcoming December 7 elections, made these remarks in Sefwi Wiaso, one of the largest cocoa-growing regions in the country. He later clarified that his statements had been misinterpreted.
According to COCOBOD officials, Ghana lost over a third of its cocoa output for the 2023/24 season to smuggling, contributing to a more than two-decade low in production and driving global cocoa prices to record highs.
To boost farmer incomes and combat smuggling, Ghana increased the fixed farmgate price by nearly 45% to 48,000 cedis (just under $3,000) per metric ton for the 2024/25 season, which began in September.
In contrast, neighboring Ivory Coast, the world’s leading cocoa producer, raised its price to 1,800 CFA francs ($3.00) per kilogram, slightly above Ghana’s rate.
Despite local media reports quoting Bawumia on plans to align farmers’ prices with those in Ivory Coast, he recently stated that a price adjustment would only occur if there was a “significant difference” between the two countries’ prices.
Currently, he noted, “As it is, there is no significant difference, so we are not adjusting prices.”
Nevertheless, many farmers remain hopeful of an upcoming price hike. A district manager for one of Ghana’s top five licensed cocoa buyers mentioned to Reuters that purchases had slowed in October, as farmers expressed intentions to retain their beans, anticipating a price increase.
