The cocoa crisis in Ghana has deepened, with licensed buyers owing banks and amount of money. According to the Licensed, buyers owe banks 7-8, which is equivalent to $650- and farmers an additional $205-234 million.
The association's president, Samuel Adimado, told Reuters that interest is piling up, putting further pressure on the sector. The crisis has been caused by a combination of factors, harvests due to disease and bad weather, and a sharp global price plunge from $12,000 per tonne in2024 to roughly $4,000 now.
The regulator, Cocobod, has been criticized for diverting funds to non-core activities, such as road construction, forcing buyers to borrow money to. As a result, buyers have delivered 580, beans this season but are still awaiting full payment, while another 70,000 tonnes remain in fields.
The government has announced an emergency response to the crisis, including a nearly 30 percent farmgate price cut to $3,580 per tonne, which is aligned with international markets. The government will also seek parliamentary approval to extend Cocobod's debt repayment and reform its financing through local debt markets, ensuring that farmers receive at least 70 percent of export prices.
The a critical part of Ghana's economy, supporting one million livelihoods. The response to the crisis will be crucial in determining the future of the sector. Finance Minister Cassiel Ato Forson has announced plans to inject immediate liquidity into the sector, but it remains to be seen whether these measures will be enough to address the crisis. being closely watched by farmers, buyers, and regulators, who are all waiting to government's plans will play out. As the situation continues to unfold, it is clear that the cocoa sector in Ghana is at a critical juncture, and the consequences of the crisis will be far-reaching.
The impact of the crisis is already being felt, with farmers and buyers struggling to make ends meet. The price cut announced by the government is expected to have a significant impact on the sector, and it remains to be seen how farmers and buyers will respond.
The government's plans to reform Cocobod's financing and extend its debt repayment are also expected to have a significant impact on the sector. As the situation continues to evolve, it is clear that the cocoa sector in Ghana is facing significant the government's response will be critical in determining the future of the sector.
