Ghana’s newly passed Cocoa Bill, though intended to strengthen governance and improve accountability within the cocoa sector, could ironically accelerate the country’s decline in global cocoa production.
This is because an industry player believes the new bill fails to address the very issues threatening the industry’s future.
While Peter Dadzie acknowledges that the legislation contains important reforms to improve the operations of the Ghana Cocoa Board (COCOBOD), he argues that it completely misses the opportunity to make cocoa farming commercially attractive and productive. This is a failure and a weakness of the bill, he believes, that could see Ecuador overtake Ghana as the world’s second-largest cocoa producer as early as next season.
According to data from the International Cocoa Organization (ICCO), Côte d’Ivoire remains the world’s largest cocoa producer, accounting for 36% of global production. Ghana currently occupies second place with 13%, but Ecuador is closing in rapidly with 12%, leaving just a one-percentage-point gap between the two countries.
That narrow margin, Peter Dadzie warns, should have compelled policymakers to focus on boosting production rather than merely strengthening regulation.
“With the passage of Ghana’s new cocoa bill, the road is clear for Ecuador to overtake our position as the world’s second largest producer of cocoa in the next season. The bill kills any hope of making cocoa farming a viable venture in the country,” Peter Dadzie disappointedly remarked.
Governance Without Growth
The industry player credits the Bill for introducing stronger governance and accountability mechanisms at COCOBOD and for reinforcing the Board’s regulatory authority over the cocoa sector.
He also praises provisions aimed at mobilising more domestic financing for cocoa purchases, which could reduce Ghana’s dependence on expensive offshore syndicated loans that have financed cocoa purchases for decades.
However, he argues these reforms stop short of addressing the structural challenges limiting cocoa production. According to him, the legislation is largely silent on productivity, commercial competitiveness and market-oriented reforms. These are issues, he believes, that are essential if Ghana hopes to maintain its leadership in the global cocoa industry.
Missing the Bigger Battle
Peter Dadzie believes Ghana’s greatest challenge is no longer administration but competitiveness. With cocoa farmers battling ageing farms, rising production costs, climate-related risks and low profitability, he argues that reforms should have prioritised increasing yields, improving farmer incomes and making cocoa farming an attractive business.
Without such measures, he fears Ghana risks losing its long-held position in the global cocoa market.
“It doesn’t touch on productivity, commercial competitiveness, and market-oriented reforms in the cocoa sector. And my interpretation of this is that they do not see or do not want cocoa farming to be a viable venture in the country. Not enough motivation for youth or investors to venture into cocoa farming,” he further remarked.
The ICCO figures illustrate just how precarious that position has become. With Ghana contributing 13% of global cocoa output compared with Ecuador’s 12%, even a modest increase in Ecuador’s production, or a further decline in Ghana’s, would be enough to change the rankings.
Concerns Over Farmers’ Rights
Among the provisions that concern him most are those he interprets as significantly expanding COCOBOD’s control over cocoa farms.
He argues that under the new law, cocoa effectively becomes the property of COCOBOD or the state to such an extent that farmers cannot even convert their cocoa farms to other crops without obtaining approval from the Board.
Such restrictions, he believes, could discourage investment and reduce farmers’ flexibility to respond to changing market conditions. In his view, a sector already struggling to attract young people cannot afford policies that further limit entrepreneurial decision-making.
A Call for Reconsideration
Peter Dadzie is therefore urging President John Dramani Mahama to withhold assent to the Bill and refer it back to Parliament for broader stakeholder consultation and further review.
He believes Ghana still has an opportunity to craft legislation that combines stronger governance with reforms that improve productivity, farmer profitability and commercial competitiveness.
Without those changes, he cautions, the country risks celebrating improved regulation while watching another nation take its place in the global cocoa hierarchy.
