Summary
Cocoa farmers in West Africa, mainly in Ghana and Ivory Coast, are struggling financially despite a recent rise and fall in cocoa prices. Farmers have not been paid as prices set by state regulators were higher than what international buyers are willing to pay. In response, Ghana's cocoa board has started buying cocoa to prevent industry collapse, but payment delays are affecting many farmers.
Key Facts
- Cocoa farmers in West Africa face financial issues as cocoa prices first rose, then fell.
- Ghana and Ivory Coast produce most of the world's cocoa, with state-set prices.
- Recent low demand and good harvests led to a price drop.
- Farmers aren’t paid as the set price is higher than what buyers pay.
- Cocobod, the Ghanaian cocoa board, buys cocoa to prevent market collapse.
- Payment delays affect about 800,000 farmers.
- Late payments impact rural communities and local economies.
- Cocobod cut executives' pay to manage financial issues, owing $3 billion.
