Cocoa farmers deserve full transparency on LID funds
The Living Income Differential (LID) was introduced in 2019 by Ghana and Côte d’Ivoire to improve the earnings of cocoa farmers.
By adding USD 400 per tonne to the market price, the policy aimed to close the income gap and ensure farmers received fair compensation for their labour. Yet six years on, the question remains: are cocoa farmers truly benefiting?
Civil society groups, including the Ghana Civil-Society Cocoa Platform (GCCP), have raised concerns about the lack of transparency surrounding LID disbursement.
While buyers continue to pay the premium, there is little clarity on how the funds are used or whether they reach farmers directly. GCCP Co-ordinator Obed Owusu-Addai has rightly called for journalists and stakeholders to trace the flow of these payments.
In September 2025, the Ghana Cocoa Board announced a new producer price of USD 5,040 per tonne, up from USD 3,100. This 62.58 per cent increase ensures farmers receive 70 per cent of the Free-On-Board (FOB) price, aligning with international best practices.
However, the absence of any reference to the LID in the pricing formula has reignited debate. If the LID is still being collected, why is it not accounted for separately?
According to the Lindt Cocoa Foundation’s 2025 report, a typical cocoa farming household in Ghana earns GHS 848 (USD 191) per month, just 48 per cent of the adjusted living income benchmark of GHS 1,758 (USD 395).
This stark gap highlights the urgency of ensuring that every income-enhancing mechanism, including the LID, is fully delivered to farmers.
It is not enough to celebrate price increases. Farmers deserve to see the direct impact of policies designed to support them. The LID was never meant to be absorbed quietly into broader reforms. It was meant to be a distinct, traceable benefit.
If Ghana is serious about transforming its cocoa sector, then transparency must be non-negotiable. Cocoa farmers are not asking for charity, they are asking for accountability and that is a fair demand.
