International buyers are increasingly turning away from Ghana’s cocoa, citing higher prices compared to beans from other producing countries, the Chief Executive Officer of Ghana Cocoa Board (COCOBOD), Dr Randy Abbey, has said.

The challenge, he said, stems from Ghana’s pricing model, which guarantees farmers a relatively high return.

Currently, farmers are paid $5,040 per tonne, representing about 70% of the Free on Board (FOB) price.

This was set when global cocoa prices were strong, averaging around $7,200 per tonne.

However, market conditions have shifted, and prices have dropped to between $4,100 and $4,400 per tonne, while Ghana’s total cost, including haulage, grading, warehousing, and shipping stands at about $6,300 per tonne.

This has created a significant gap between Ghana’s cocoa and beans from competitors such as Côte d’Ivoire, Nigeria, Ecuador, and Brazil.

"Which buyer will take your crop at 5,040 when the same crop is available for 4,100? So, the buyers have moved from Ghana to other places where they can get a crop because it's a business," he said on TV3's Key Points.

Dr Abbey noted that buyers act on behalf of manufacturers who are unwilling to pay above prevailing market rates.

The situation is compounded by Ghana’s $400 Living Income Differential (LID), introduced to ensure farmers earn a fair wage.

While the LID was designed to secure Ghana’s premium status, it has made the country’s cocoa less competitive in a market where alternatives are abundant.

So far, buyers have purchased 530,000 tonnes of Ghana’s projected 650,000-tonne output, but with prices tumbling, many are reluctant to commit further, opting instead for cheaper sources.

With cocoa available across West Africa, Latin America, and Asia, Ghana faces mounting pressure to balance farmer welfare with market competitiveness.

SA/EB

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