-Demand Fair Wages and Environmental Reform
A coalition of cocoa farmers has formally filed a complaint with the Ghana Cocoa Board (Cocobod), the state cocoa regulator, calling for urgent reforms to address longstanding economic and environmental challenges in the cocoa sector.
The farmers, backed by advocacy groups, are demanding a “living income” that meets their basic needs, along with measures to curb deforestation, child labour, and the use of harmful pesticides.
The petition, signed by 30 farmers, marks a big test for a grievance mechanism set up by Cocobod as part of a US$600 million syndicated loan agreement arranged by the African Development Bank (AfDB) in 2019.
The grievance mechanism, implemented as a condition of the AfDB loan, was designed to address precisely these types of social and environmental issues in the country’s cocoa sector, according to the complaint. The submission, facilitated by the University of Ghana School of Law, the Civic Response non-profit, and the Corporate Accountability Lab based in Chicago, emphasizes the harsh reality for cocoa farmers who, despite the recent 45% increase in the official price to 48,000 cedis (US$3,000) per metric ton, continue to struggle to make a living.
Ghana, the world’s second-largest cocoa producer, has seen the industry struggle with a combination of poor harvests and soaring global cocoa prices. Contracts are still trading above historical averages, with December cocoa prices in New York remaining above US$7,000 per ton.
Despite these high prices, studies show that only a small percentage of Ghanaian cocoa farmers earn a sustainable income from their work, raising serious questions about the industry’s distribution of profits.
The complaint asserts that Cocobod, with its wide-reaching authority over farmer pricing, marketing, and pesticide regulation, should require cocoa-buying companies to pay fair prices that enable a living income for farmers. The petition argues that higher prices are not only essential to the livelihood of cocoa-growing communities but are a fundamental step toward addressing child labour, a persistent issue in Ghana’s cocoa industry.
Beyond income issues, the complaint also highlights environmental concerns, calling on Cocobod to enforce stricter anti-deforestation measures and hold companies accountable for their environmental commitments.
The farmers and advocates argue that transparency across the supply chain is essential and demand that companies commit to making their cocoa supply sources publicly available to prevent further forest degradation.
