Ghanaian cocoa farmers demand 70% of FOB price as fair compensation

Cocoa farmers in Ghana are renewing their call for the government to guarantee them at least 70% of the Free-On-Board (FOB) price of cocoa as their share. They believe that receiving anything below this threshold continues to undermine their vital role in sustaining the global cocoa industry.

This renewed demand follows a recent assurance from former President John Dramani Mahama during his Thank You tour in the Ahafo Region. Speaking on Saturday, he indicated that a new and significantly enhanced producer price for cocoa would be announced by August 2025.

In an interview with Citi Business News, the President of the Ghana National Cocoa Farmers Association, Mr. Stephenson Anane Boateng, welcomed the news but expressed some skepticism. He emphasized that while the upcoming review is appreciated, cocoa farmers have long felt shortchanged by successive governments.

“We are Ghanaians, and our work contributes significantly to the national economy. The constitution makes it clear that farmers should receive 70% of the FOB price, yet every government seems to introduce its own figures,” he lamented.

Ghana, recognized as the world’s second-largest cocoa producer, relies heavily on the sector for foreign exchange and rural development. The income farmers receive, therefore, plays a crucial role in improving livelihoods and encouraging long-term investment in cocoa production.

Mr. Anane Boateng also cautioned the government against pushing large-scale commercial cocoa farming without clear and sustainable strategies. He argued that such initiatives could disadvantage smallholder farmers and disrupt the balance of the industry.

“I don’t understand the need for government-driven commercial cocoa farms. Remember, Dr. Kwame Nkrumah established several state farms and factories, but where are they today?” he asked, raising concerns about the viability of such projects.

Previously, under the New Patriotic Party (NPP) administration, the cocoa producer price was increased in November 2024. The rate moved from GH₵48,000 to GH₵49,600 per tonne, resulting in an increase in the price of a 64kg bag from GH₵3,000 to GH₵3,100.

GOT A STORY?
Email Daily Mail GH: stories@dailymailgh.com or
Whatsapp: +233(0)509928122