Global cocoa prices have skyrocketed in 2024, reaching unprecedented levels amid persistent supply shortages and adverse weather conditions. Key producers like Ghana and Ivory Coast, which account for approximately 60% of the world’s cocoa, are at the center of this global market turmoil.

In April 2024, cocoa prices surged to nearly $10,000 per ton, a historic peak, driven by declining harvests and soaring demand. The 2023/2024 season is projected to end with a global deficit of 475,000 tons, significantly higher than earlier estimates. This shortfall is largely attributed to climate change, El Niño-induced weather disruptions, and fungal diseases such as "black pod disease," which have collectively reduced yields by as much as 40–50%.

The National President of the Ghana Cooperative Cocoa Farmers Association, Issifu Issaka, speaking on Joy News, emphasized the need for reforms in Ghana's cocoa bean pricing mechanism to better benefit local farmers.

"We need to adopt a spot market or physical market system where cocoa farmers can benefit directly from international market prices," said Issifu Issaka, President of the Ghana Cooperative Cocoa Farmers Association. "If farmers receive at least 70% of the gross revenue around $7,000 per ton at current prices, it would provide a sustainable living income. This would enable them to invest in alternative livelihoods and improve their overall standard of living."

Ghana’s Cocoa Farmers Face Mixed Fortunes

In response to these challenges, COCOBOD raised the guaranteed price for cocoa from GHS 3,000 to GHS 3,100 per 64kg bag—a modest 3.3% increase for the 2024/2025 crop season. While the price adjustment reflects rising global market trends, many farmers face escalating production costs and limited access to financing, which erode potential profits.

COCOBOD continues to play a vital role in protecting farmers, ensuring fair pricing, and implementing programs such as the Cocoa Productivity Enhancement Programme, designed to boost yields through training and subsidized inputs. However, the success of these initiatives depends on timely implementation and sufficient funding, both of which remain uncertain.

Outlook for the 2024/2025 Season

The 2024/2025 season is expected to bring further price increases due to ongoing supply constraints and growing global demand. While these higher prices could provide an economic boost to farmers, systemic inefficiencies and inequalities in the supply chain often mean these benefits fail to trickle down to those who need them most.

As Ghanaian cocoa farmers navigate these turbulent times, sustainable policies, fairer profit distribution, and enhanced access to resources will be essential to ensuring long-term growth and stability in the sector. Without addressing these fundamental issues, many farmers will continue to face mixed fortunes, even as the global cocoa market thrives.