IERPP Warns: Cocoa Producer Price Cut from GH¢3,625 to GH¢2,587 Risks Economic Stability, National Security, and Surge in Galamsey

The Institute of Economic Research and Public Policy (IERPP) has issued a stark warning that the government’s recent reduction of the cocoa producer price from GH¢3,625 to GH¢2,587 per 64 kg bag could trigger serious long-term damage to Ghana’s economy, rural livelihoods, and national security if not urgently reversed.

In a strongly worded statement signed by Executive Director Professor Isaac Boadi, IERPP described the price cut announced earlier this month—as deeply unpopular among cocoa farmers and economically shortsighted. The institute noted widespread rejection of the government’s rationale for the adjustment, which cited global market volatility and COCOBOD financial pressures.

Key Concerns Raised by IERPP

• Mass Disengagement from Cocoa Farming — With over one million people directly dependent on the cocoa value chain, the lower price is likely to discourage continued participation and deter youth from entering the industry. Professor Boadi warned that sustained low returns could lead to large-scale abandonment of farms.
• Job Losses and Social Disruption — Reduced viability of cocoa farming risks widespread unemployment in cocoa-growing communities, potentially fuelling poverty, rural-urban migration, and associated social challenges.
• Environmental and Security Threat via Galamsey Surge — The institute expressed grave concern that frustrated farmers may turn to illegal small-scale mining (galamsey) or sell farmland to galamsey operators as an alternative source of income. Ghana has already suffered severe environmental degradation, water pollution, and deforestation from galamsey in recent years, with national security implications arising from armed conflicts over mining sites and land disputes.
• Broader Economic Vulnerability — Cocoa remains one of Ghana’s top traditional export earners (alongside gold and oil). Any prolonged disruption to production and export volumes could weaken foreign exchange earnings, worsen the current account balance, and undermine fiscal stability.

IERPP described cocoa as a “longstanding pillar of the national economy” and stressed that undermining farmer confidence and output would have ripple effects far beyond the agricultural sector.

Call for Urgent Reversal

The institute called on the government to take immediate steps to de-escalate tensions in the sector, including:

Reinstating the previous producer price of GH¢3,625 per bag

Engaging farmers, COCOBOD, and industry stakeholders in transparent dialogue

Addressing underlying financial pressures at COCOBOD through sustainable reforms rather than burdening farmers

Implementing measures to protect cocoa farms from encroachment by galamsey operators

Professor Boadi emphasised that swift corrective action is essential to safeguard rural economies, prevent environmental catastrophe, and avert potential national security risks arising from widespread discontent in cocoa-dependent communities.

The statement has added significant weight to growing criticism of the price reduction from farmer associations, traditional leaders, civil society, and opposition politicians. With the mid-crop season underway and tensions rising, pressure is mounting on government and COCOBOD to respond decisively before the situation deteriorates further.

The Ministry of Food and Agriculture and COCOBOD are yet to issue a formal response to the IERPP statement as of February 25, 2026.