Are Ghanaian cocoa farmers being paid enough to live on in 2023?

The analysis by Oxfam revealed that the world’s largest chocolate corporations had made over $50 billion in profits since the pandemic. On the other hand, the net average income for cocoa farmers in Ghana has fallen by 16% since the pandemic.

While the first quarter of 2024 is in its infancy, the question of whether Ghanaian cocoa farmers are being paid enough to live on remains.

The unethical story behind your chocolate bar

According to the report by Oxfam, approximately 90% of cocoa farmers earn up to only $2 a day. This meagre income makes it difficult for these households to afford adequate food and clothing or access health care. Additionally, as most cocoa farming in Ghana happens on small-scale family-owned land, the duty to labor for the crop is a family responsibility, meaning children, too, are part of the workforce.

Top chocolate manufacturers across the globe who source cocoa from Ghana have made promises over the decades to eliminate child labor and poverty in their supply chain. To achieve this goal, these manufacturers would need to implement sustainability programs to boost cocoa production by small-scale farmers. This will, in turn, boost the income of cocoa farmers. As of 2023, the Oxfam analysis reported while those sustainability programs have been developed, implementation has greatly failed. This has resulted in a decline in cocoa crop yields by up to 25%.

Today, the promises made years ago to cocoa farmers of exploitation-free chocolate and sustainable cocoa production are yet to be fulfilled. Public chocolate corporations such as Nestlé, Lindt, Hershey, and Mondelēz and private chocolate corporations owned by the likes of the Ferrero and Mars families continue to bring in astronomical profits. In contrast, cocoa farmers in Ghana continue to live in abject poverty while both young and old work under harsh conditions to put food on the table.

Unsurprisingly, cocoa farmers are finding alternative sources of income, including planting rubber trees, beekeeping, and snail farming. On the other hand, some of the youth working in these farms have taken up betting, or even signing up on casino demo accounts to hone their wagering skills.

The 2023 Ghanaian cocoa sector challenges

As of November 2023, the inflation rate in Ghana was at 26.4%, the lowest in 19 months since the country began experiencing its worst economic crisis ever. This high cost of living continues to put more pressure on an already struggling cocoa sector, which has had to grapple with the following challenges:

Illegal artisanal mining, a.k.a ‘Galamsey’

According to Ghana’s Cocoa Board (COCOBOD) director of anti-illegal mining, illegal mining on cocoa farms has greatly increased over the past 5 years. The destruction caused so far has reached an alarming proportion. As a source of income, cocoa farmers either lease their land to illegal miners or practice artisanal mining in the hopes of discovering valuable metals such as gold, cobalt and gemstones.

In an effort to dissuade farmers from engaging in ‘galamsey’, the government agreed to raise the price paid to cocoa producers by 63% in the 2023/2024 quarter. However, the results of these efforts are yet to materialize. Cocoa farmers can earn as much as a lucrative $500 a month by leasing their land to illegal miners instead of planting cocoa, which only earns them about $1,822 annually.

Cocoa beans smuggling

As more farmers opt out of cocoa farming, the government, on the other hand, continues to grapple with the rise of the smuggling of cocoa beans. As of the end of 2022, Ghana had lost an estimated $600 million in revenue due to cocoa bean smuggling. In 2023, the COCOBOD has made efforts to capture culprits involved in cocoa bean smuggling by offering cash rewards to individuals who report suspects.

Climate change

While the Ghanaian government has put in measures in 2023 to nip illegal mining and cocoa bean smuggling in the bud, climate change is another challenge they’ve had to deal with — but have no control over. Due to climate change, there has been a significant threat to cocoa pod growth and cocoa production In Ghana.

Cocoa farmers are already paying the price as arable land for cocoa production reduces and the spread of pests and diseases increases due to El Nino. With the extreme weather phenomenon of El Nino expected to continue through January to March 2024, the associated drier conditions in West Africa are expected to persist.

Ghana remains the world’s second-largest producer of cocoa beans, and more chocolate is being consumed globally now than ever. However, this value is insignificant to cocoa farmers who still do not earn a living income from the cash crop.

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