Ghana’s cocoa farmers are not reaping fair rewards from record global cocoa prices, according to the newly released 2025 Cocoa Barometer, which highlights widening inequalities across the cocoa value chain despite improved economic stability.
The biennial report, produced by a coalition of civil society organisations and research institutes, reveals that even with Ghana’s stronger exchange rate and declining inflation, most cocoa farmers continue to live below the living income threshold.
It notes that Ghana and Côte d’Ivoire, which together produce over 60 percent of the world’s cocoa, still retain less than six percent of the industry’s global value.
The report blames the skewed structure of the international cocoa market, where multinational chocolate manufacturers and commodity traders wield significant pricing influence.
“Cocoa producers continue to bear the greatest risks but enjoy the smallest rewards,” the report laments, urging a shift from rhetoric to real action on fair pricing.
The Barometer further argues that while the Living Income Differential (LID) introduced by Ghana and Côte d’Ivoire was a step forward, its impact has been limited by weak transparency and minimal farmer involvement in pricing negotiations.
It calls for stronger institutional mechanisms to guarantee fairer returns for farmers, alongside major investments in local cocoa processing and value addition to help Ghana retain more wealth within its borders.
“Value addition should no longer be treated as optional, it must become an economic priority,” the document stresses, noting that local manufacturing could significantly boost farmer incomes and job creation.
Beyond economic issues, the report warns of escalating environmental risks. People engaged in illegal mining, or Galamsey, continue to encroach on cocoa-growing areas, degrading soils and polluting rivers. If unchecked, the Barometer cautions, these activities could permanently undermine Ghana’s cocoa output and international reputation for sustainable production.
To address these challenges, the report recommends a coordinated approach that strengthens land governance, provides incentives for sustainable agriculture, and enhances partnerships with development agencies to rehabilitate degraded cocoa landscapes.
The findings underscore the need for Ghana to align its macroeconomic recovery with inclusive growth in the agricultural sector, particularly for the farmers who form the backbone of its cocoa economy.
Meanwhile, in an effort to improve farmer welfare, the government recently announced a 12.27 percent increase in the producer price of cocoa for the 2025/2026 season. The price has risen from GH¢3,228.75 to GH¢3,625 per bag of cocoa, equivalent to GH¢58,000 per metric tonne.
However, while the adjustment is welcome, sustained investment in productivity, fair trade practices, and environmental restoration remains critical to ensuring long-term prosperity in Ghana’s cocoa industry.
