Renowned American economist and professor of applied economics at Johns Hopkins University, Steve Hanke, has accused the Ghana Cocoa Board (COCOBOD) of exploiting local cocoa farmers. According to Prof. Hanke, COCOBOD pays farmers only one-third of the market price for cocoa, a situation he describes as a significant injustice.
Taking to his official X page, Prof. Hanke stated, “The Ghana Cocoa Board rips off Ghanaian farmers. The board pays farmers only one-third of the market price for cocoa. The Cocoa Board is a typical corrupt Ghanaian institution.” His remarks have sparked discussions on the fairness of Ghana’s cocoa pricing policies and the challenges faced by local farmers.
His comments come at a time when the new Chief Executive of COCOBOD, Dr. Randy Abbey, has reiterated the government’s commitment to supporting local cocoa processing and boosting domestic consumption as a key strategy for price stabilization. Dr. Abbey noted that despite Ghana’s installed domestic cocoa processing capacity of 504,780 tonnes, existing processors are operating below 50% of their capacity. He attributed this underutilization to low domestic consumption, which continues to hinder the country’s ability to benefit fully from the multi-billion-dollar global chocolate industry.
Dr. Abbey further highlighted that while Ghana’s per capita cocoa consumption has increased from 0.5kg to 1kg, this achievement pales in comparison to consumption rates in non-cocoa-producing countries in Europe and the Americas. In response to this challenge, he pledged that the government would actively support the cocoa sector by incentivizing domestic processing, assisting small-scale cocoa processors, and fostering public-private partnerships to enhance capacity utilization.
“I am pleased to inform you that His Excellency, John Dramani Mahama, the President of the Republic of Ghana, has directed me to put in place measures that will ensure that Ghana increases its export of processed cocoa products at the expense of raw cocoa beans,” Dr. Abbey stated.
As discussions around Ghana’s cocoa sector continue, the concerns raised by Prof. Hanke and the government’s commitment to strengthening the industry remain focal points of debate within the agricultural and economic spheres.