Ministry of Agriculture says Dollar–Cedi exchange rate is a key factor in cocoa farmer payment challenges
Apreku Lartey, Communications Director at the Ministry of Agriculture, has highlighted the complex role that the United States dollar–Ghana cedi exchange rate plays in Ghana’s cocoa pricing and related payment delays to cocoa farmers.
Speaking on Kessben FM with host Wofa Kofi Appiah, Lartey explained that cocoa is traded and priced in dollars on the international market, meaning the cedi–dollar rate directly affects how much local currency COCOBOD receives when it sells cocoa abroad and how much it can pay farmers domestically. Because export earnings are converted from dollars to cedis, a stronger cedi reduces the local-currency value of foreign exchange earnings, placing additional pressure on the cocoa board’s ability to meet its financial obligations. This dynamic can make it harder to pay farmers on time, especially when global prices and currency values fluctuate sharply.
Lartey’s comments come amid ongoing frustration among cocoa farmers over delayed and insufficient payments, with many farmers across cocoa-growing regions demanding quicker settlement for produce delivered. Industry analysts have also pointed out that the interplay between global market prices, fixed domestic farmgate prices, and fluctuating exchange rates contributes to the financial strain in the sector.
Economists note that while Ghana aims to protect farmers by setting farmgate prices that reflect a share of world market values, the cedi’s strength can dramatically reduce the cedi equivalent of dollar-based cocoa revenues, making it harder for COCOBOD to balance its books and satisfy payment obligations without government support or external financing.
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