Ghana's Cocoa Financing Crisis Leaves Farmers Unpaid

Ghana's newly revised cocoa financing system has encountered a significant breakdown as international traders have refused to make the required 60% upfront payments on forward contracts, leaving farmers unpaid since November. This crisis has emerged at a critical time for Ghana, the world's second-largest cocoa producer, as a global surplus has driven international cocoa prices down by 20% this year, following a 50% decline in 2024. This price collapse has created a mismatch with Ghana's farmgate price, set at 58,000 cedis per metric ton (approximately $4,640), while international prices hover around $4,700 per ton.