Mahama Sympathises With Cocoa Farmers, Says Price Cuts Affected Him: “I Planted Cocoa on 50 Acres”
- President John Mahama has empathised with cocoa farmers, sharing his own struggles with price cuts affecting his farm
- The president's recent comments came at the inaugural Ghana Tree Crops Investment Summit and Exhibition
- Cocoa prices were reduced from GH¢3,625 to GH¢2,587 per bag due to instability on the international market
President John Mahama is sympathising with cocoa farmers, saying he too has been affected by the price cuts because he has a farm.
Mahama also called for pragmatic reforms that centre on cocoa farmers.
Source: Facebook
The president's recent comments came at the inaugural Ghana Tree Crops Investment Summit and Exhibition in Accra on February 17.
Mahama said fluctuations in global cocoa prices and recent adjustments within the industry have direct consequences for farmers, urging stakeholders to appreciate the difficult balance required in managing the sector.
“I planted cocoa on 50 acres, so I am a cocoa farmer. When the price is reduced by the government, it affects me too."
"I want to empathise with farmers so that when we take policy decisions, we understand the impact and feel it ourselves. If the price of fertiliser is high, I feel it because I also buy fertiliser.”
His remarks come against the backdrop of debate over recent reforms in the cocoa economy, including the reduction of the producer price from GH¢3,625 to GH¢2,587 per bag due to instability on the international market.
The price review has sparked concern among farmers, who say declining earnings and rising input costs are increasing pressure on cocoa production and threatening livelihoods.
What is happening in Ghana's Cocoa Sector?
Reuters reported that some of Ghana's farmers have not been paid, and investments in the next harvest are at risk as international traders refuse to pay the upfront sums to the Cocobod.
The revamped system, introduced for the 2024/25 season, shifted the burden of pre-financing purchases from the country's cocoa board to international traders.
Under the previous system that had been in place for three decades, the government raised funds annually via syndicated loans and disbursed them to the licensed buying companies, which in turn bought beans from farmers and delivered them to the regulator for onward sale to the international markets.
Source: Getty Images
Abbey has admitted that delays in paying farmers stem from the collapse of a syndicated loan that financed cocoa purchases over the last 32 years.
As a remedy, the government cut its farmgate cocoa price paid to farmers to spur more demand, and announced a new financing model for bean purchases.
Reuters reported that the new financing model will rely on domestic cocoa bonds, issued and managed by the Ghana Cocoa Board, with repayments tied to sales proceeds within the same crop year.
COCOBOD slashes salaries amid cocoa sector crisis
YEN.com.gh reported that the Ghana Cocoa Board announced salary reductions for its executive management in response to ongoing liquidity challenges within the cocoa sector.
The underfire board said the pay cuts will take immediate effect and will remain in place for the remainder of the 2025/2026 season.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
