By King Amoah
Cocoa is not just a commodity in Ghana; it’s a economic lifeline that sustains millions of families and contributes significantly to the nation’s economy.
However, recent developments have brought to light the urgent need for pricing reforms to address the challenges faced by local cocoa farmers.
This is particularly evident in the voice of Egya Twum, a cocoa farmer from Sefwi Wioso in the Western region, who is calling for price adjustments to combat illicit cocoa smuggling to neighboring countries.
Recently, the Ghana Cocoa Board announced an increase in the price of cocoa to GHC 300.99 per bag.
While any price hike is generally welcome news for farmers, Twum points out that this figure falls significantly short when compared to prevailing global prices.
This discrepancy poses a threat not just to the livelihoods of farmers but also to the integrity of Ghana’s cocoa sector.
According to Twum, the current price is below what is necessary for farmers to sustain their operations, especially in the face of rising input costs, labor, and other economic pressures.
In an exclusive interview, he emphasized that if the price does not reflect the true market value, farmers will be incentivized to engage in smuggling cocoa across the borders, where they could potentially get better prices.
Neighboring countries often offer more attractive prices for cocoa, which would further undermine Ghana’s cocoa industry and economic stability.
The issue of smuggling is multi-faceted. It not only robs the country of its revenue from cocoa exports but also shifts the focus away from sustainable farming practices that Ghana has worked so hard to encourage.
Egya disclosed that if local farmers are continually pushed to seek better prices in other countries, this could lead to a cycle of neglect of local systems of support and a broader economic fallout.
Adding it would be prudent for the government officials and stakeholders within the cocoa sector to pay heed to these warnings.
A hastily agreed upon pricing strategy that does not consider global market fluctuations is ineffective and risks alienating the very producers whose labor supports this vital industry.
Farmers, like Twum, nurture the cocoa plantations that form the backbone of Ghana’s economy, and their voices should resonate in the corridors of power where economic policies are crafted.
Market competitiveness is crucial, and the government must seek to establish a more equitable pricing framework that aligns more closely with international standards.
Egya Twum observed that the recent price adjustment for cocoa farmers, while a step in the right direction, is not enough to address the broader challenges they face.
As echoed by Egya Twum, cocoa prices must reflect international market rates to ensure that the livelihoods of Ghana’s cocoa farmers are secured.
By following Egya Twum’s call for reform, Ghana can foster a robust cocoa economy that not only supports its farmers but also continues to thrive on the global stage.
