Cocoa Price Dispute: Mahama Criticizes Government’s Offer to Farmers

A dispute over cocoa prices in Ghana has escalated, with former President John Mahama criticizing the government's offer to cocoa farmers as unfair. The disagreement centers around the percentage of the international Free on Board (FOB) price that cocoa farmers in Ghana should receive for their produce.

A dispute over cocoa prices in Ghana has escalated, with former President John Mahama criticizing the government’s offer to cocoa farmers as unfair.

The disagreement centers around the percentage of the international Free on Board (FOB) price that cocoa farmers in Ghana should receive for their produce.

President Nana Akufo-Addo recently announced an increase in cocoa prices from GH¢12,800 per tonne to GH¢20,943 per tonne, which translates to GH¢1,308 per bag.

This new price represents 70.5% of the Gross FOB price and is equal to $1,821 per tonne. President Akufo-Addo noted that this is the highest price paid to cocoa farmers in West Africa in nearly half a century.

However, former President Mahama argued that the government should have provided cocoa farmers with a more equitable share of the international FOB price, especially given that the international market price of cocoa recently reached a 46-year record high of $3,600 per tonne.

In a Facebook post, Mahama expressed disappointment with the government’s offer, stating, “Sadly, government has chosen to give them a paltry GH₵1,308 per bag, which constitutes only 52.7% of the FOB Price of the product on the international market.”

He contended that this percentage is significantly lower than what cocoa farmers received during his tenure as president in 2016 when his government allocated them 66.06% of the FOB price. Mahama suggested that the current administration should have built upon this foundation and increased the share for farmers, but instead, they have increased the operational expenses of COCOBOD (Ghana Cocoa Board) and reduced the international FOB share for farmers.

The cocoa price dispute highlights the challenges facing cocoa farmers in Ghana and the ongoing debate about how to ensure they receive a fair share of the proceeds from their labor. As this issue unfolds, it remains a topic of significant concern and discussion within the agricultural sector in Ghana.