Ghana's vital cocoa sector is currently embroiled in significant controversy and financial challenges, primarily driven by a mid-season reduction in the cocoa farmgate price.

President John Dramani Mahama has emphasized the critical need for farmer-centred policies, drawing on his personal experience as a cocoa farmer to highlight the direct impact of government pricing decisions.

He understands the economic pressures faced by farmers, especially amid recent global price volatility and sector developments. His remarks follow the controversial decision by the Ghana Cocoa Board (COCOBOD) to slash the farmgate price from GH¢3,625 to GH¢2,587 per 64kg bag, a 28.6% cut, for the remainder of the 2025/2026 crop season.

This reduction aims to align with a volatile international market and address COCOBOD's financial challenges.

The impact of this price cut on farmers has been severe. Farmers in regions like Ashanti, Western North, and Eastern have expressed profound frustration, noting that the new price barely covers rising costs for labour, fertiliser, and transportation, leaving them in financial distress.

Awal Mohammed, a member of the NPP Communications Team, accused the government of impoverishing cocoa farmers through delayed payments and inadequate support, asserting that farmers consistently receive far less than the promised 70% of the Free On Board (FOB) price, sometimes as low as 40-50%.

He highlighted the human cost, mentioning students forced out of school due to parents' inability to pay fees because of delayed cocoa payments.

The People's Forum has launched a protest campaign, rolling out billboards across major regions featuring weary farmers and the poignant message: “Our sweat, their excuses. GH¢2,587 per bag? How do we survive?”

The campaign uses hashtags like #CocoaFarmersMatter and #JusticeForFarmers, serving as a “wake-up call” to government officials about potential farmer protests.

Adding to the sector's woes, COCOBOD announced salary reductions for its staff, with Executive Management taking a 20% pay cut and Senior Staff a 10% reduction, citing liquidity challenges.

However, this move has been met with strong criticism. Isaac Yaw Opoku, Ranking Member of Parliament’s Food, Agriculture and Cocoa Affairs Committee, called these cuts unfair, arguing that they punish workers for management shortcomings.

He suggested that COCOBOD could generate more funds by curbing administrative inefficiencies, renegotiating export contracts, and improving transparency in its procurement and marketing processes rather than passing the burden onto farmers and staff.

Analysts warn that continued instability in the cocoa sector could have wider economic implications for Ghana, as cocoa accounts for roughly 20% of the country’s export revenue.

Without timely intervention, reduced farmer incomes may lead to lower production, affecting both domestic livelihoods and international supply commitments.

President Mahama has called for urgent dialogue among stakeholders, urging COCOBOD, farmer unions, and political leaders to collaborate on a sustainable pricing and support framework.

The coming weeks are expected to be critical, as protests, negotiations, and policy decisions will likely shape the future of Ghana’s cocoa industry.