A reduction in cocoa producer prices could worsen illegal mining and undermine environmental sustainability, according to a new policy commentary by environmental governance expert, Dr. Paa Kwesi Eduaful Abaidoo.
In an article titled “Cocoa Price Reduction: Risk for Galamsey and Environmental Sustainability”, the Executive Director of CENS Africa cautions that falling farmgate prices may push farmers into risky livelihood choices, including intensified farming and illegal mining.
The development comes amid concerns over delays in payments to farmers and financial challenges facing the Ghana Cocoa Board (COCOBOD).
The article notes that “Ghana’s cocoa sector is in the news once again because COCOBOD is unable to pay some farmers for their produce,” adding that recent interventions announced by Finance Minister Cassiel Ato Forson have not eased public anxiety.
According to Dr. Abaidoo, while the government’s decision may be driven by market realities, it will have serious implications for farmers’ incomes.
“Global cocoa prices have experienced a decline while Ghana’s cocoa looks expensive compared to other producers,” he explained, arguing that authorities are “compelled to adjust local prices to remain competitive.”
However, he stressed that “the most impactful outcome is simply about reduction in earnings to the farmers.”
He warned that lower earnings could lead to environmentally harmful farming practices.
“The lower prices means that the serious, ambitious and production-oriented cocoa farmer will become more aggressive,” he wrote, adding that this could result in “uncontrolled use of chemicals, additional land take for farming, conversion of forest and protected areas into farmlands and extensive bush burning activities.”
Beyond agriculture, the policy analyst expressed concern about the impact on the mining sector, particularly illegal small-scale mining, popularly known as galamsey.
He observed that “one of the key factors driving illegal and unsustainable mining activities in Ghana is the limited appeal of alternative livelihoods,” noting that cocoa farming has traditionally been one of the most profitable options for rural households.
He also highlights growing competition between farming and mining for land, especially in cocoa-growing communities.
He notes that “agricultural lands are increasingly being converted into mining areas at a faster rate,” with farmers often pressured to sell their lands due to financial hardship.
Dr. Abaidoo further linked the situation to rising interest in the gold sector, driven by strong international prices and the establishment of GOLDBod.
He noted that “the gold sector is on its momentum,” making mining more attractive to young people and rural residents.
He cautioned that this trend could undermine efforts to curb environmental degradation, stressing that “small-scale and illegal mining remains a persistent and damaging problem, primarily due to its severe environmental impacts.”
To address the risks, the CENS Africa Executive Director called for closer coordination between cocoa and gold sector regulators.
He urged that “interventions and activities of both COCOBOD and GOLDBod must therefore be strategically coordinated,” warning that failure to do so could “increase the base and the risk of intense illegal mining.”
He also recommended temporary support for farmers, including subsidies and special incentive packages.
“Interventions such as subsidies and special packages must be put in place to encourage farmers and sustain their interest in the sector,” he stated, alongside extensive sensitisation programmes for cocoa farmers.
Dr. Abaidoo noted that the current situation presents a critical policy moment, urging government to balance economic reforms with environmental protection.
“This is a crucial time,” he noted, “to create a strong synergy between the Gold and Cocoa sectors,” in order to safeguard livelihoods and protect Ghana’s natural resources.
