News Guide Africa

Tag: Cocoa prices

  • COCOBOD clears GH¢2.6bn debts to LBCs as global cocoa price crash hits West African farmers

    COCOBOD clears GH¢2.6bn debts to LBCs as global cocoa price crash hits West African farmers

    By Adnan Adams Mohammed

     

    In a major bid to salvage the livelihoods of struggling cocoa producers, the Ghana Cocoa Board (COCOBOD) announced today that it has released GH¢2.6 billion to Licensed Buying Companies (LBCs).

    The intervention is designed to immediately fix a severe liquidity crunch within the internal supply chain, offering an economic shield to thousands of local smallholders currently bearing the brunt of a punishing downturn in global commodity pricing.

    The sweeping financial relief has drawn widespread praise from industry insiders, who highlighted the visionary leadership of Dr. Randy Abbey, The Chief Executive Officer of COCOBOD.

    Stakeholders have commended Dr. Abbey for his tireless efforts and strategic advocacy behind the scenes to cushion cocoa farmers, ensuring their financial welfare remains at the forefront of national policy during this market crisis.

    According to the official statement issued by COCOBOD’s Public Affairs Department on July 2, 2026, approximately GH¢1.4 billion of the newly released funds has been strictly earmarked to clear the remaining balance that LBCs owe to farmers for cocoa purchased on credit.

     

    A Lifeline for Farmers Stranded by Credit Purchases

    The relief comes at a critical juncture for Ghana’s agricultural sector. Since the opening of the 2025/26 crop season, COCOBOD has channeled a total of GH¢34,523,447,255.64 to LBCs for onward farmer compensation. However, the rapid shifting of the global market left many middlemen cash-strapped, forcing them to take cocoa from farmers on credit without immediate payment.

    “COCOBOD acknowledges the patience, resilience, and understanding demonstrated by cocoa farmers during this challenging period,” the Board stated in its press release, assuring the public that “no farmer will be denied payment for cocoa legitimately sold through the approved cocoa purchasing system.”

    To ensure that the newly disbursed billions reach the intended recipients rather than lingering in corporate accounts, COCOBOD has established stringent oversight.

    “The Board has instituted monitoring mechanisms to ensure that the funds reach the farmers who are owed,” the statement noted, urging affected farmers to actively engage their respective LBCs to settle outstanding accounts.

     

    The Broader Crisis: A Brutal Global Price Crash

    The financial bottlenecks facing Ghanaian LBCs are deeply intertwined with a broader international market crisis. Just over a year ago, global cocoa futures peaked at a historic high of nearly $13,000 per metric ton due to severe supply shortages. However, by early 2026, improving weather forecasts and a sharp contraction in demand from international chocolate manufacturers triggered a massive market correction, sending prices plunging over 75% to around $3,000 per ton.

    This price crash has had devastating real-world implications for the roughly 2.5 million smallholder farmers across West Africa who produce two-thirds of the world’s cocoa supply. As global buyers back away or delay purchases to force state-regulated pricing systems downward, raw cocoa has piled up unsold at local ports, leaving farmers without the cash flow to sustain their operations.

    Local farmers describe a grim reality on the ground.

    “Because of the delayed payment, I don’t have money to pay the workers who harvest the crop,” explained Emmanuel Nojor, a Ghanaian cocoa farmer hit hard by the delays. “That’s why the harvest has gone bad.”

    The sentiment is mirrored across the border in Côte d’Ivoire, where unions warn of systemic rural poverty.

    “Producers are dying in poverty even though they have crops. They have no money for medicine or food,” said Ivorian farmer Firmin Coulibaly in a recent interview.

     

    Reclaiming Stability in the Cocoa Value Chain

    Agricultural economists point out that the current crisis exposes deep-seated structural vulnerabilities in the cocoa supply chain, where African nations primarily export cheap, raw beans while multinational chocolate brands capture the lion’s share of profits.

    The government hopes this massive GH¢2.6 billion intervention will restore trust, stabilize local supply chains, and shield vulnerable farmers from the volatile whims of global commodity markets.

    COCOBOD concluded its address by reiterating its mandate to support the backbone of Ghana’s economy:

    “The release of these funds underscores the Government’s commitment to safeguarding the welfare of cocoa farmers and preserving the integrity of Ghana’s cocoa industry.”

    For outstanding payment inquiries, farmers are advised to contact their respective LBCs or reach the COCOBOD Public Affairs Department directly at (0302) 66-17-66 or via email at public_affairs@cocobod.gh.

     

     

     

     

     

     

  • West African Cocoa Cartel Revived: Ghana and Côte d’Ivoire harmonize prices and push for industrial processing

    West African Cocoa Cartel Revived: Ghana and Côte d’Ivoire harmonize prices and push for industrial processing

    By Adnan Adams Mohammed

     

    In a historic bid to reshape the economics of the global confectionery industry, West Africa’s primary cocoa powerhouses, Ghana and Côte d’Ivoire, have signed an expansive agreement to completely harmonize their producer pricing policies, align marketing calendars, and aggressively scale up local processing.

    The unified front, forged during a high-level summit in Abidjan, aims to insulate the region from global market volatility and reclaim the lion’s share of profits historically captured by Western chocolate manufacturers.

    Together, the two nations control roughly 60% of global cocoa production. By forming a tighter, synchronized alliance, frequently described by analysts as a “Cocoa OPEC”, the neighbors are taking a significant step toward forcing structural changes in international commodities trading.

    Price Alignment to Battle Smuggling and Market Cracks

    The newly minted framework dictates that starting with the 2026/2027 marketing season, the cocoa crop year for both countries will run uniformly from September 1 to August 31. Crucially, a joint technical task force will synchronize farm-gate prices in dollar terms, effectively eliminating the price differentials that have historically fueled systemic cross-border smuggling.

    The economic necessity of this alignment was underscored by a recent divergence during the mid-crop cycle. While Ghana strategically chose to keep its producer price steady at \text{GH¢2,587} per 64kg bag to provide a baseline of stability for farmers despite dipping international futures, Côte d’Ivoire slashed its farm-gate price to 1,200 CFA francs per kilogram—the equivalent of roughly \text{GH¢1,513.15} per bag. This stark economic imbalance triggered an aggressive wave of illegal bean smuggling into Ghana, destabilizing purchasing operations.

    Presenting the committee’s binding conclusions, Ghana’s Minister for Finance, Dr. Cassiel Ato Forson, underscored the strategic clarity behind the new framework.

    “The two countries have explicitly agreed to harmonise farm-gate prices through unified measures,” Dr. Forson stated. “The Committee thus firmly reaffirms its long-term commitment to the integrated coordination of cocoa price management, data sharing, and synchronized marketing strategies.”

    Breaking the Raw Export Trap: The Value-Addition Agenda

    A core focus of the Abidjan summit was a shared frustration over Africa’s historical position at the bottom of the global value chain. Despite driving the vast majority of the world’s production, African countries capture a negligible portion of the broader global chocolate market’s annual revenues.

    During a presentation to international stakeholders, Dr. Forson called the existing setup economically unsustainable, demanding an immediate acceleration of industrialization within the sub-region.

    “Africa produces 80% of the world’s cocoa but captures a negligible share of the sector’s profits,” Dr. Forson argued. “The Steering Committee emphasizes that greater local value addition will contribute directly to sustainable job creation, robust industrial development, export diversification, and better retention of wealth within producing countries.”

    To operationalize this agenda, both governments pledged to expand domestic grinding and processing factories, create smoother pathways for intra-African trade of semi-finished cocoa products, and actively promote regional consumption of locally manufactured chocolate.

    Headwinds and Geopolitical Resiliency

    The joint declaration, signed directly by Ivorian President Alassane Ouattara and Ghanaian President John Dramani Mahama, formally revives the foundational goals of the 2018 Abidjan Declaration, which had languished due to regulatory disputes and localized market pressures.

    The revival comes at a critical juncture. Over the past year, global cocoa prices underwent unprecedented wild swings—surging past a historic US$12,000 per metric ton due to climate shocks and disease outbreaks, before plunging sharply and stabilizing around US$4,200 per ton.

    The two heads of state noted that moving forward as a unified cartel is the only way to shield local farmers from the destructive impacts of climate change, the rapid spread of the Cocoa Swollen Shoot Viral Disease, and the threat of illegal gold mining (galamsey) destroying fertile arable land.

    “We are true partners, not adversaries or competitors, in the cocoa sector,” President Mahama emphasized following his closed-door consultations with President Ouattara. “Fair remuneration for our farmers is a core pillar of the sector’s sustainability and a basic requirement for economic justice and social stability.”

    As the joint September 1 calendar launch approaches, global commodities traders are recalibrating their models. The coordinated West African alliance signals to international markets that the era of exploiting uncoordinated pricing strategies between Accra and Abidjan is drawing to a close.

     

  • Govt cushions cocoa farmers …maintains producer price for 2026 Light Crop Season amid global slump

     

    By Adnan Adams Mohammed 

    In a major move to shield local farmers from the volatile international commodities market, the Government of Ghana, acting through the Ghana Cocoa Board (COCOBOD), has announced that the producer price of cocoa will remain unchanged for the upcoming 2025/26 Light Crop Season.

    The decision comes at a critical time when global cocoa prices are experiencing a notable downward trend, signaling the government’s intent to absorb the economic shocks on behalf of local producers.

    According to an official circular released by COCOBOD, the state will maintain the existing guaranteed pricing structure to ensure financial predictability for the farming community.

    Purchases for the new light crop season are officially scheduled to commence on Thursday, June 18, 2026.

    The approved pricing structures for the season have been outlined as follows:

    Quantity / Unit Approved Grade I & II Price

    Per Load (30 kg) GH¢1,241.76

    Per Bag (64 kg gross) GH¢2,587.00

    Per Tonne (16 bags) GH¢41,392.00

     

    Protecting Livelihoods

    The state’s intervention is explicitly designed to act as a financial buffer. In the official press release, COCOBOD emphasized that the policy is a direct reflection of state support for the agricultural backbone of the country.

    “The decision underscores Government’s commitment to protecting the incomes and livelihoods of cocoa farmers, even as international cocoa prices experience a downward trend,” the statement read.

     

    By holding the financial line, the administration hopes to inject a sense of security into the rural economy before the harvesting and buying processes begin.

    “By maintaining the current producer price, Government aims to provide stability and confidence to farmers ahead of the new light crop season,” COCOBOD noted.

     

    Industry-Wide Coordination

    The directive, signed by the Deputy Chief Executive in charge of Agronomy and Quality Control (A&QC), Dr. Francis Baah, has already been dispatched to all major stakeholders across the cocoa value chain to ensure compliance and a seamless rollout nationwide.

    The regulatory body confirmed that the necessary logistical and administrative frameworks are being aligned ahead of next week’s opening date.

    “The announcement has been communicated to key stakeholders within the cocoa industry, including Licensed Buying Companies (LBCs), COCOBOD management, relevant ministries, and other sector players to ensure a smooth commencement of cocoa purchases nationwide.”

     

     

     

     

  • Ghana paying 112% more to cocoa farmers over Ivory Coast …edging out regional competitiveness

    Ghana paying 112% more to cocoa farmers over Ivory Coast …edging out regional competitiveness

    By Adnan Adams Mohammed

    In a significant shift for the West African agricultural landscape, Ghanaian cocoa farmers are now earning substantially higher returns per bag than their counterparts in neighboring Côte d’Ivoire.

    According to the new cocoa price announced by the Côte d’Ivoire authority is 800–1,000 CFA per kg. This translates to the farmgate price for a bag of cocoa in Côte d’Ivoire, which, when converted to Ghana Cedis, sits at GH₵ 1,216. While the same in Ghana is pegged at a staggering GH₵ 2,587. This stands in sharp contrast to the price between the two major producers of the commodity aside being border neighbors.

    The Numbers at a Glance

    The price disparity represents a massive windfall for local producers, providing a competitive edge that has long been a point of contention in the cross-border cocoa trade.

    Country Price per Bag (GHS)

    Ghana GH₵ 2,587

    Côte d’Ivoire GH₵ 1,216

    Total Difference + GH₵ 1,371

    Based on the data provided:

    ● Ghana Cocoa Price: GH₵2,587

    ● Côte d’Ivoire Cocoa Price: GH₵1,216

    ● Absolute Difference: GH₵1,371

    Percentage Difference Calculations:

    Percentage increase (How much more Ghana pays relative to Côte d’Ivoire):

    Ghana’s cocoa price is approximately 112.75% higher than the price in Côte d’Ivoire.

    Difference as a percentage of Ghana’s price:

    The surplus of GH₵1,371 accounts for approximately 53.00% of the total price paid to Ghanaian farmers.

    Economic Impact and Smuggling Deterrence

    For years, price differences between the two largest cocoa-producing nations in the world have fueled illegal smuggling across the borders. Traditionally, if the Ivorian price was higher, Ghanaian beans would bleed across the border; however, this current surplus of GH₵ 1,371 per bag in Ghana provides a powerful financial incentive for farmers to keep their produce within the domestic supply chain.

    Industry analysts suggest that this price is a direct result of recent government interventions and a response to the rallying global market prices for “brown gold.” For the average Ghanaian farmer, this extra GH₵ 1,371 represents more than just a statistic it is increased purchasing power for fertilizers, labor, and household needs.

    “This is a historic moment for the Ghanaian cocoa sector. We are finally seeing a price point that reflects the hard work of our farmers compared to the regional average,” noted one agricultural consultant during the broadcast.

    Looking Ahead

    While the current figures are a cause for consideration among farming communities, the focus now shifts to the sustainability of these prices.

    With the global cocoa market experiencing high volatility due to climate patterns and crop disease, the Ghana Cocoa Board (COCOBOD) remains under pressure to ensure these gains are protected for the long term.

    For now, the message from the fields is clear: it is a good time to be a cocoa farmer in Ghana.

     

     

     

     

     

     

     

     

  • Cedi gains slashes Ghana’s external debt stock

     

    Cedi rallies over 40% in 2025, prompting renewed optimism for Ghana’s debt sustainability targets.

     

     

    The Government of Ghana has started hoping that a key macroeconomic target for 2028 – that of reaching a public debt sustainability threshold of between 56% and 58% of Gross Domestic Product, could actually be achieved as early as the end of this year. This is coming on the back of the Cedi’s sharp appreciation against the United States dollar which has seen it appreciate more than 40% against the American green back this year – far outperforming its African and emerging market peers – and thus shrinking the cost of the country’s foreign debt and giving it more fiscal breathing room.

    “We have reduced our total debt over the last five months by almost GHc150-billion, which is very significant” President John Dramani Mahama revealed at a session during the African Development Bank annual meeting in Abidjan last week, citing the cedi strength.

    “If that trajectory continues, the target of reaching 55-58% debt sustainability by 2028 will be reached by the end of this year. And that means that it begins to give us fiscal space to begin to invest in the most productive sectors of the economy.”

    The global standard for debt sustainability in emerging market economies, as set by the International Monetary Fund and the World Bank is a public debt to GDP ratio of 60% although some heavily indebted middle income countries outside of an IMF programme tend to regard the threshold as 70% of their GDP.

    Ghana’s debt to GDP ratio had fallen to 70.5% of its GDP by the end of 2024, following fundamental restructuring of its public debt, down from an estimated 79.18% in 2021 which however did not include the country’s legacy energy debt and its debt overhang from the funding of a comprehensive financial services industry reform between 2017 and 2020. Indeed, computations that added on those debts put Ghana’s ratio at closer to 90%, persuading the IMF to insist that the country restructure its public debt towards sustainability before assenting to provide a three year Extended Credit Facility programme inclusive of a front-loaded US$3 billion financial bail out in 2023.

    In all the cedi had gained 42% against the dollar since January, changing hands near GHc10.20 to the dollar as at mid last week before slipping a little towards the end of the week.

    The rally, which has surprised some investors, is another much-needed boost for Ghana as it claws its way back from debt default and a punishing economic crisis.

    While the dollar has also been under pressure this year, the cedi’s performance stands in stark contrast to other African currencies.

    The cedi’s appreciation has been fueled by several factors, both external and internal one of them being the strategic interventions of the country’s central bank. The Bank of Ghana (BoG) has played a pivotal role through aggressive monetary tightening and forex market interventions

    Another pivotal factor has been the commodity revenue windfall arising out of the ongoing price surges in two of Ghana’s main traditional exports, gold and cocoa. Surging gold prices—from US$2,000 per ounce in 2024 to US$3,400/ounce in May 2025— have boosted export revenues with Ghana earning US$2.72 billion from gold exports alone during first four months of 2025 up from US$900 million during the corresponding period of 2024.

    Cocoa prices nearing US$10,000 per ton have further bolstered inflows, combining with gold, oil and non- traditional exports to take Ghana’s trade surplus to a long term high of US$4.3 billion in 2024.

    Yet another factor has been the impacts of the ongoing three year International Monetary Fund programme, which includes an insistence on a return to demand management economic policies to restore macroeconomic stability after the near-chaos that reigned from late 2022 to late 2023.

    Local Ghanaian holders of dollar debt exchanging their money back into cedis are also helping the gains.

    There has been a key external factor too in that the dollar’s depreciation, driven by U.S. tariff wars and a falling Dollar Index (DXY) from 108 to 99 in 2025, have amplified the cedi’s relative strength.

    However while Ghana now looks to reaping the benefits of a stronger cedi with regards to its debt sustainability it is by no means a given yet as potential headwinds still exist.

    Tellimer’s Hasnain Malik, a sovereign country analyst and Lutz Röhmeyer, head of portfolio management at Capitulum Asset Management, have both warned that the cedi’s rally may not last, citing drops in oil and cocoa prices, as well as IMF forecasts that imply a possible coming depreciation.

     

  • Commodity markets outlook promising for cocoa and gold

    Gold and Cocoa set for growth in 2025

     

    Adnan Adams Mohammed

     

    Cocoa and gold have been projected to record strong performances on the commodity market, according to analysts.

     

    Databank Research’s market outlook for 2025 indicates that the Gold price, which surged by 25.6% in 2024 due to geopolitical tensions and inflation concerns, is anticipated to rise further this year. Gold prices are expected to range between US$2,600 and US$3,100 per ounce, driven by potential interest rate cuts from the U.S. Federal Reserve and sustained demand for gold from central banks. Gold serves as the most preferred store of value during periods of currency markets volatility.

     

    Cocoa prices are also forecasted to remain elevated, closing this year between US$ 7,000 and US$ 9,600 per tonne. However, amidst the optimism concerning cocoa and gold prices, the price of benchmark Brent crude oil is projected to continuously face difficulties.

     

    Ghanaian investors are encouraged to diversify their portfolios by considering gold-backed securities, such as the Ghana Gold Coin introduced by the Bank of Ghana, as a hedge against economic uncertainties. However, they should prudently measure the upside potential for gold prices against cedi – dollar exchange risks; it is instructive that the cedi price of the BoG Gold Coins fell during the last weeks of 2024 due to the appreciation of the cedi against the US dollar.

     

    Persistent supply challenges, exacerbated by the implementation of the EU Deforestation Regulation, are expected to constrain global cocoa output.

     

    Conversely, Brent crude oil prices, which declined by 20.31% in 2024, are projected to stabilize below US$ 76 per barrel in 2025. Factors such as high U.S. inventories, economic slowdowns in major consuming nations, and a global shift toward cleaner energy are likely to weigh on demand.

     

    With these trends, 2025 presents diverse opportunities for investors, particularly in gold and cocoa, while the oil market may require cautious navigation amidst ongoing challenges.