Welcome to Africanews

Please select your experience

Watch Live

Business

business

Cocoa: Ghana slashes farmgate rate paid to farmers

Cocoa pods hang on a tree in Divo, West-Central Ivory Coast, November 19, 2023. Chocolate may come with a slightly bitter aftertaste this Easter.   -  
Copyright © africanews
AP Photo

Cocoa

Ghana has slashed its farmgate cocoa rate paid to farmers, amid a drop in global cocoa prices.

The move aligns the price with that of the international market to encourage more demand The country is the world’s second largest cocoa producer.

But it has had difficulty paying farmers as cocoa demand has plummeted, prompting global cocoa prices to halve over the course of a year to approximately $4000 per metric ton.

As a result of payment delays, thousands of farmers were left without money for food and basic farm maintenance.

Meanwhile stocks of unsold beans piled up in farms.

Ghana's farmgate price, established yearly by market regulator Cocobod, was almost $5,300 a ton.

The new price will be $3,580 per metric ton for the remainder of the 2025/2026 season.

According to an official, Ghana’s leaders have directed the market regulator to start immediate repayment of all impacted cocoa farmers.