Ghanaian cocoa farmers are demanding clear explanations regarding the government's promise to ensure they receive 70% of the value of cocoa. Martin Adu, convener of the Young Cocoa Farmers Association, stated that farmers lack understanding of how this 70% share will be calculated and protected. This uncertainty surrounds the proposed 2026 Cocoa Bill, which aims to regulate the sector.
Farmers are particularly concerned about the vagueness of the 70% pledge. Adu highlighted that farmers need to know if this share is tied to the free-on-board (FOB) value of cocoa. International market prices for cocoa can change significantly, raising questions about how farmers' earnings will be affected. Farmers want a clear mechanism to regulate and protect their share, regardless of price fluctuations. They fear suffering when prices drop and seek assurances of increased earnings when prices rise.
This issue fits into Ghana's broader economic narrative of ensuring fair returns for primary producers. Cocoa is a cornerstone of the Ghanaian economy, contributing significantly to export earnings and rural livelihoods. The government's pledge aims to improve farmer incomes and make cocoa farming more attractive. However, past initiatives have sometimes faced implementation challenges or lacked sufficient farmer engagement. Ensuring transparency and farmer buy-in is crucial for the success of such policies and for maintaining Ghana's position as a leading cocoa producer.
“The 70 percent is vague. If you say 70 percent, we are still not getting it,” Adu said on the Asaase Breakfast Show. He emphasized the need for direct consultation, stating that farmers have not been adequately engaged on the proposed legislation. Adu believes farmers need to understand the benefits, challenges, and practical implications of the bill's provisions.
Beyond pricing, farmers also expressed concerns about specific provisions in the bill related to farm management. Adu pointed out that farmers sometimes need to remove unproductive or diseased cocoa trees for farm maintenance. They are worried about potential restrictions on cutting cocoa trees and the penalties that might apply. Farmers seek clarification on which trees can be removed and under what circumstances. They do not want ordinary farm management decisions to lead to arrests or prosecution due to unclear laws.
Another critical concern raised by Adu involves the financial capacity of licensed buying companies (LBCs). He questioned the value of a 70% statutory guarantee if LBCs lack sufficient funds to purchase cocoa from farmers. Adu argued that any guarantee on the farmer's share must be accompanied by a mechanism ensuring buyers have adequate funds. Farmers could otherwise be left with cocoa they cannot sell, undermining the entire pricing structure. He called for reforms to ensure LBCs pay farmers cash upon purchase, rather than taking produce and paying later.
The lack of clarity and consultation risks discouraging young people from entering cocoa farming. Adu warned that policy uncertainty and inadequate pricing contribute to declining interest among the younger generation. He noted that some young people in cocoa-growing areas are turning to illegal mining, which they perceive as offering quicker returns. If the cocoa sector is not made attractive, Ghana could face a generational challenge in its vital cocoa industry. Adu urged the government to engage farmers directly and provide clear information to secure the future of cocoa farming.