Cocoa Price Collapses, farmers suffer more than you know

Cocoa farming was never a sure thing. But there was always a plan for those risks. A 28% price drop is manageable in theory but in practice, it's for those who have brought in their beans in November expecting one price and being offered another.

The actual destruction is not in those spreadsheets. It's in the decisions that have been made. The debt that's been incurred. The school fees that have been paid.

The price of fertilizer still costs what it costs. So does the price of labor. Those prices didn't receive the announcement about the price collapse.

In as much as Ghana is known to be one of the biggest exporters of Cocoa and no doubt I'm proud of my country but things are not as easy and as successful as they make it seem in the news. The reality for the farmer in real life is a struggle to keep up with market prices changing so rapidly. It's sad but the one thing we need to do which is better policies that'll help is the one thing the government seems to be diverting. Just because your minister of food says it's ok doesn't mean the Labor force doing the ground work are ok. But I'll bring up Ivory Coast.

The hidden danger in all of this is the role of Ivory Coast. Two countries bordering each other and both lowering prices. Slightly out of sync. The space between those prices doesn't just create smugglers, it creates border zone problem, it creates border zone desperation. Desperation that's difficult to regulate and easy to take advantage of.

The world market fell by more than 60% in one year, it didn't just fall it basically collapsed. And yet when the correction finally came, it came suddenly. Because it had been pent up and waiting.

The question of whether or not Ivory Coast will cut their prices by 35% still hangs in the balance. There's very little coordination and only a few are learning the lessons. At this point you mostly see the price falling and the farmer standing underneath.

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