Ghana’s cocoa sector difficulties are the result of avoidable policy and trading decisions rather than purely global market forces, Oforikrom MP Michael Kwasi Aidoo has said.
Speaking on Newsfile on JoyNews on Saturday, Mr Aidoo said authorities failed to fully secure favourable cocoa prices when global markets reached historic highs, leaving the country exposed when prices later declined sharply.
“I think it is a self-inflicted problem,” he said, pointing to missed opportunities to protect Ghana’s earnings through forward sales.
Global cocoa prices rose dramatically between 2023 and early 2025 due to supply shortages and adverse weather in major producing countries.
Mr Aidoo said prices, which had remained between $2,000 and $3,000 per metric tonne for years, climbed steeply and reached about $10,000 per tonne in 2024, with peaks of around $13,000 per tonne in early 2025.
“This is the first time in many years that prices have reached where they are,” he said.
He argued that such conditions provided a rare opportunity for Ghana to lock in high export prices through forward sales contracts.
“The best decision to take is to sell your cocoa forward and take advantage of the position then,” he said.
Forward sales allow cocoa-producing countries to agree on prices in advance, helping to protect revenue from market volatility.
Mr Aidoo said Ghana sold about 82% of its cocoa beans between March and August 2025, but failed to secure contracts for all projected volumes.
He said this left tens of thousands of tonnes exposed when prices later dropped.
“You knew that you have sold about 82% of your beans… Market has crashed and you have stock and you can’t sell,” he said.
He estimated that between 50,000 and 70,000 tonnes remained unsold at profitable prices.
“It’s a loss. It’s a business wrong. It’s a wrong calculation that has been done,” he added.
Cocoa prices have since fallen sharply, affecting export earnings and financial stability in the sector.
Mr Aidoo said rising production projections in Ghana and neighbouring Ivory Coast contributed to falling prices.
He noted that Ghana’s output was expected to rise significantly from about 432,000 metric tonnes in 2023 to around 650,000 metric tonnes, while Ivory Coast continued producing about 1.8 million metric tonnes annually.
He said global buyers anticipated increased supply, which pushed prices down.
“Every buyer knowing that there’s going to be a glut in the market will push price down,” he said.
Commodity markets typically respond to supply expectations, with increased production leading to lower prices.
Mr Aidoo also blamed early public announcements about future price increases for disrupting cocoa deliveries.
He said farmers and buying companies delayed selling cocoa in anticipation of higher prices.
“Everybody will hoard… farmers will hoard, nobody will bring the cocoa to you,” he said.
This forced authorities to announce the producer price earlier than usual, setting the price at GH¢3,625 per bag to encourage deliveries.
He said producer prices are based on forward sales calculations and projected export revenues.
“It means you have done your calculation to see how much you sold and how much you are getting,” he said.
Cocoa is Ghana’s second-largest export after gold and supports more than 800,000 farming households. It is a key source of foreign exchange and government revenue.
The sector’s current challenges have raised concerns about export earnings, farmer incomes and financial stability.
Mr Aidoo said better planning and trading decisions could have prevented the situation.
“It’s a loss… it’s a wrong calculation,” he said.
His comments add to the growing debate over cocoa sector management and how Ghana can protect itself from future commodity price shocks.
Source: adomonline.com
