• Ghana cuts cocoa price 28.6% to 41,392 cedis
• Decision follows 70% drop in global prices
• Backlog builds as traders face liquidity crunch

Ghana will cut the price of cocoa beans by 28.6% to 41,392 cedis ($3,764) per tonne for the remainder of the 2025/2026 season, Finance Minister Cassiel Ato Forson announced on Thursday, February 12.

The decision, which had been under discussion since late January according to several sources familiar with the matter, represents a victory for some and a bitter disappointment for others. Producer organizations had feared this scenario, which has now materialized amid a global price crisis that has hit the country's marketing system.

Around 50,000 tonnes of cocoa have accumulated in ports, according to the Ghana Cocoa Board (Cocobod), as traders face a liquidity crunch. They must pay more than expected for beans due to a nearly 70% drop in global cocoa prices from their late 2024 peak.

Several companies estimate the backlog at 300,000 tonnes, according to Reuters, when accounting for unsettled bean volumes still stored inland by operators, stocks held by producers, and additional quantities expected from the mid-crop harvest between March and August.

"The current situation is primarily due to buyers' reluctance to purchase Ghanaian cocoa, which has become uncompetitive and very expensive," a company executive told the business publication.

As in Côte d'Ivoire, traders argue that the prices paid for beans are too high in a weak international context that has squeezed their margins. The pricing structure includes the international market price set in London, the origin differential (a premium linked to product quality), and the $400 per tonne living income differential introduced in 2020/2021 to improve producers' incomes.

While authorities in Côte d'Ivoire have chosen to maintain their price levels in the face of these arguments, according to Bloomberg, Ghanaian officials have opted for an adjustment to ease the crisis. The announcement, which is likely to prompt a response from producer organizations, comes alongside other major decisions for the sector.

Authorities unveiled a new financing model based on the issuance of domestic bonds backed by cocoa. Principal and interest repayments will be directly linked to revenues generated from sales of the same harvest. According to Forson, a new bill should also be submitted to Parliament later this year to index farmgate prices to international prices while guaranteeing 70% of the free-on-board (FOB) price.

Espoir Olodo