Ghana is doing the opposite of its neighbour Côte d’Ivoire when it comes to cocoa pricing — and it's on purpose.
While Côte d’Ivoire cuts producer prices whenever international cocoa prices fall, Ghana has held its price steady this season. Jerome Sam, Head of Public Affairs at COCOBOD, explained the thinking on JoyNews' PM Express on Monday.
“If we consider what's prevailing on the international market, then of course the price would've gone down again,” Sam said. But Ghana chose a different path.
Under Ghana's system, the price announced at the start of the main crop season usually stays locked for the entire season. Sam said this is “a conventional thing, and it's been a practice all this while.” At the beginning of the season, an official announcement comes, and then again for the light crop season.
But this year was different. Something unusual happened starting last year that forced authorities to review prices earlier than expected. In February, COCOBOD and the government stepped in to change the price mid-season — a rare move that sparked public debate.
“It's quite unfortunate. Something happened this year. Starting from the beginning of last year, which goes into this year, something happened, so we had to have a change in the price somewhere in February,” Sam explained.
That mid-season review was necessary, he said, to save a sector that contributes significantly to Ghana’s GDP. But the overriding factor in the latest decision to hold prices steady was the welfare of the ordinary farmer.
“Government took into consideration the income levels of the ordinary farmer. That's basically the first thing government took into consideration,” Sam stated.
Sam, who's currently based in Côte d’Ivoire, drew a direct comparison. In Côte d’Ivoire, producer prices are adjusted whenever international prices dip. “Should you come to Côte d’Ivoire, where I find myself today, that's what's happening, because they're having changes as and when the prices dip,” he said.
Ghana's approach is different. “We took a decision that the farmer has already been hit, so we need to make sure that the prices remain unchanged, so we can end the season,” Sam said.
The government is balancing farmer protection with the long-term health of the cocoa sector. “Inasmuch as we're protecting the farmer, we're also ensuring a sustainable sector which will continue to play that major role in the lives of the farmers, as well as the economy,” Sam added.
“Government was largely very concerned about the income and livelihood of the ordinary cocoa farmer.”
Ghana and Côte d’Ivoire together produce about 60% of the world's cocoa. But their pricing philosophies differ. Ghana's system has traditionally shielded farmers from global price swings, while Côte d’Ivoire lets the market dictate local prices more directly.
Sam acknowledged that the mid-season price change earlier this year generated significant public discussion. But he maintained it was necessary to protect a sector that millions of Ghanaians depend on.
For now, the price stays. Farmers will finish the season at the same rate announced earlier, even as global prices slide. Whether that approach can hold next season isn't clear yet — but for this season, Ghana has drawn a line.