In Ghana and Ivory Coast, which produce much of the world’s cocoa, governments set prices for farmers in advance. After cocoa prices surged in 2024, they later collapsed. As a result, locally set prices are now about 40% higher than what international buyers are willing to pay, leaving beans unsold.

In Ghana, around 800,000 farmers are reportedly affected by payment delays. Many depend entirely on cocoa farming, and the lack of income has caused serious problems in rural communities.

According to BBC, farmer Akosua Frimpong said she could not afford medical care for her sick husband because she had not been paid for her cocoa. He later died at home.

The crisis is partly due to lower global demand and good harvests, which increased supply. Chocolate companies have also reduced cocoa use and shrunk bar sizes after earlier price spikes.

Ghana’s Cocoa Board (Cocobod) has tried to stabilize the industry by buying unsold beans, but the policy has pushed its debt to about $3 billion. The board has now reduced the guaranteed price paid to farmers.

Farmers say the cut will make things worse because production costs, labour, and farm inputs remain high.

Similar problems are happening in Ivory Coast, the world’s largest cocoa producer, where warehouses are filling with unsold cocoa beans. Officials have responded by cutting the guaranteed farmer price in half to encourage exports.

For many farmers, the crisis threatens their ability to feed their families and pay for essentials like education and healthcare.

“We live through cocoa,” one farmer said. “When there is no money in the household, there is no peace.”