The global price of cocoa is spiking, a direct response to dwindling cocoa output in West Africa. In September, cocoa futures reached a 44-year price peak due to mounting concerns over reduced supplies from the region. The price surge could prove to be a critical moment for cocoa farming and policy in west Africa.
The cocoa-producing belt of west Africa is responsible for generating over 80% of the total global output. Between them, Ghana and Côte d’Ivoire contribute more than 60% to the global output. Ghana is the second-biggest producer in the world and cocoa is a vital component of the country’s economy.
The global price spike has led west African governments to increase the guaranteed producer prices to farmers. Ghana recently raised the state-guaranteed cocoa price paid to farmers by two thirds. The announcement means that Ghana’s cocoa farmers will be paid 20,943 cedis (US$1,837) per tonne for the upcoming 2023-2024 season, up from 12,800 cedis.