Government Policies Under Fire: Are Cocoa Farmers Being Left Behind?

Introduction

Cocoa farming remains a cornerstone of Ghana’s economy, providing livelihoods for millions of families across the country. However, recent statements from political figures have raised serious concerns about whether current government policies are truly supporting these vital agricultural workers. Awal Mohammed, a member of the New Patriotic Party Communications Team, has made explosive allegations about how government actions—or inactions—are directly impoverishing cocoa farmers across Ghana.

Key Points

Background

Ghana has long been one of the world’s leading cocoa producers, with the crop serving as a major export commodity and source of foreign exchange. The Cocoa Board (COCOBOD) was established to regulate the industry and ensure fair compensation for farmers. Historically, governments have made various promises about improving farmer incomes, particularly regarding the Free On Board (FOB) price—the amount farmers receive before cocoa leaves Ghana’s shores.

For years, cocoa farmers have struggled with fluctuating prices, delayed payments, and inadequate support services. The current controversy centers on whether the government is fulfilling its commitments to share cocoa profits equitably with those who do the actual farming work.

Analysis

Awal Mohammed’s criticism strikes at the heart of a fundamental economic justice issue. When he states that “from time immemorial, it hasn’t ever came about that it’s the cocoa farmer who will take the reduce,” he’s highlighting a systemic problem where farmers bear the brunt of market volatility while government and corporate entities maintain their margins.

The comparison to Côte d’Ivoire is particularly damning. While Ghana’s government has set the farmgate price at GH₵41,392 per tonne (GH₵2,587 per bag), neighboring Côte d’Ivoire is paying 3,600 CFA per kilogram and enforcing strict compliance from Licensed Buying Companies (LBCs). This price differential creates a powerful incentive for smuggling, as businesspeople can profit by moving Ghanaian cocoa across the border.

Mohammed’s observation that “business people buy and smuggle cocoa to sell elsewhere” rather than farmers themselves doing the smuggling is an important distinction. It suggests that the problem isn’t criminal farmers but rather a market failure where legal channels don’t provide adequate compensation.

The human cost becomes painfully clear when considering that university students are being forced to abandon their education because their parents’ cocoa payments remain outstanding since November. This isn’t just an economic issue—it’s a generational one that affects social mobility and national development.

Practical Advice

For cocoa farmers currently struggling with delayed payments:

1. **Document everything**: Keep detailed records of all cocoa deliveries, including dates, quantities, and to whom it was sold
2. **Join farmer cooperatives**: Collective bargaining power can help negotiate better terms and faster payments
3. **Diversify income sources**: Consider intercropping or alternative income streams to reduce dependency on cocoa alone
4. **Engage with local representatives**: Make your concerns known to district assembly members and parliamentary representatives
5. **Stay informed**: Follow developments in cocoa pricing and policy changes through reliable news sources and COCOBOD communications

For policymakers seeking to address these issues:

1. **Accelerate payment systems**: Implement digital payment solutions to reduce delays
2. **Increase transparency**: Publish regular reports on cocoa pricing, payments, and distribution
3. **Strengthen enforcement**: Crack down on smuggling while ensuring farmers receive fair compensation
4. **Invest in productivity**: Provide better access to improved seedlings, fertilizers, and farming techniques
5. **Create safety nets**: Establish emergency funds for times of market volatility

FAQ

Conclusion

The allegations made by Awal Mohammed paint a troubling picture of an industry that, despite its economic importance, continues to fail the very people who form its foundation. When university students cannot afford their education because their parents’ cocoa payments remain unpaid, when farmers consistently receive less than promised, and when smuggling becomes economically rational due to price differentials, the system is clearly broken.

The government’s response to these challenges will determine not only the future of Ghana’s cocoa industry but also the economic well-being of millions of citizens. Addressing these issues requires more than just setting prices—it demands a comprehensive approach that ensures timely payments, fair compensation, and sustainable support for farmers who have long been the backbone of Ghana’s agricultural economy.