According to Reuters, cocoa growers stockpile beans in expectation of a price increase.

According to industry sources who spoke to Reuters, cocoa farmers in Ghana, the world’s second-largest producer, are stockpiling beans in anticipation of higher prices. This could put pressure on supplies to a global cocoa market that is trying to rebound from the devastating harvests of the previous season.
A dozen farmers, purchasers, and representatives from the state regulator Cocobod confirmed the practice, though it was unclear how widespread the up-country bean stocking was. Some blamed the practice for the slowdown in bean purchases.

A cocoa farmer in south-central Ghana revealed, “I have more than 300 bags, but I won’t sell,” without providing their name. “After Christmas is the only time I will sell. We’re hoping they’ll follow through on their promise to raise the price.

All of the reports claimed that farmers were responding to remarks made by Vice President Mahamudu Bawumia, who four weeks prior had promised to increase farmer prices to members of the ruling New Patriotic Party.

Speaking at Sefwi Wiaso, one of the largest cocoa-growing communities in southwestern Ghana, Bawumia is vying for the presidency in the elections scheduled for December 7. Since then, he has claimed that his remarks were misinterpreted.

According to Cocobod officials, Ghana lost over one-third of its 2023–2024 cocoa production to smuggling, compounding the problems that caused production to drop to a level not seen in over two decades and contributed to record high cocoa prices worldwide.

Ghana increased the fixed farmgate price by over 45% to 48,000 cedis, or little less than $3,000, per metric tonne for the 2024–25 season, which began in September, in an effort to increase farmer incomes and discourage smuggling.

But Ivory Coast, Ghana’s neighbour and the largest cocoa producer in the world, increased the price to 1,800 CFA francs ($3.00) per kilogramme, which is only marginally more than Ghana’s.

NO CHANGE IN PRICE

According to local media, Bawumia stated that the government would raise farmers’ prices to match those in Ivory Coast.
However, Bawumia told Reuters on Friday that a price adjustment would only occur if there was a “significant difference” between the prices of the two nations.

“As it is, there is no significant difference, so we are not adjusting prices,” he stated.

Many farmers, however, think that a price increase is imminent.
In the southeast Ghanaian town of Suhum, a district manager for one of the country’s top five licensed cocoa purchasers told Reuters that October saw a slowdown in purchases, with farmers claiming to be holding onto their beans due to rumours of price increases.

According to a senior buyer, some farmers have even requested the return of beans they have already sold after learning that prices may be raised.

Joseph Aidoo, the CEO of Cocobod, said local media on Monday that if the Ghanaian cedi currency depreciates, farmers’ revenue will be reduced and the farmgate price will increase.

The current price, according to Samuel Adimado, head of Ghana’s cocoa purchasers’ group, is ideal for farmers and will assist Cocobod in paying off its debts.

“How long can you hoard?” is the question. Farmers will eventually release it if it isn’t smuggled out,” he stated.

$1 is equal to 600.2500 CFA francs.