Cocoa: 45% Price Hike
– New producer price per ton now GH₵48,000
Story: Daniel NONOR, Accra
THE government has announced a 45% increase in the producer price of cocoa for the 2024/2025 crop season.
The new producer price of cocoa for the season now stands at GH₵48,000 per ton or GH₵3,000 per 64kg bag, a sharp increase from last year’s GH₵20,908 per ton and GH₵1,308 per bag.
At the beginning of the 2023/2024 season in April, the farmgate price was increased by 58.26 % to GH₵33,120 per metric ton, or 2,070 cedi per bag of 64 kilograms
For the 2024/2025 crop season, the farmgate price has been increased to GH¢3,000 bringing the cumulative increase to 129.6%.
The new price took effect from Wednesday, September 11, 2024.
Announcing the prices in Accra yesterday, Minister of Agriculture, Byran Acheampong emphasised government’s commitment to securing better livelihoods for cocoa farmers amidst global market volatility.
He described the cocoa price increase as a key milestone in Ghana’s journey to fortify the industry, which has faced dramatic fluctuations in international market prices.
He described the cumulative increase 129.36% as the highest producer price ever announced for Ghanaian cocoa farmers.
The Minister made reference to the fluctuations in global market prices over the past year as a key component which informed the pegging of the new price.
According to him, cocoa spot prices saw extreme volatility, moving from $2,000 per ton in March 2023 to a peak of $12,000 per ton in February 2024, before dropping to $7,960 per ton in September 2024.
On the futures market, where Ghana has traded for over 50 years, prices fluctuated from $2,200 per ton in March 2023 to over $10,000 per ton in February 2024, before declining to $6,246 per ton in September 2024.
“These severe highs and lows in prices are indicative of a market that requires careful analysis before making any pricing decisions,” Acheampong stated. The minister explained that the Producer Price Review Committee (PRC) undertook a comprehensive review before setting the new price, factoring in the market’s volatility and the operational costs of maintaining and supporting cocoa production.
Hon. Acheampong emphasized that the price increase is in line with the government’s broader agenda to improve the livelihoods of cocoa farmers. He reiterated the vision of President Nana Addo Dankwa Akufo-Addo, stressing that the government remains committed to ensuring that the cocoa industry is robust, resilient, and sustainable for present and future generations.
“The appreciable increment in the producer price of cocoa signifies the government’s commitment to improving the sector and the livelihoods of Ghanaian cocoa farmers,” he added.
Addressing speculations about pricing competition between Ghana and neighbouring Ivory Coast, Hon. Acheampong dismissed the notion, stating that the two countries are partners in supporting the cocoa industry through the Côte d’Ivoire-Ghana Cocoa Initiative.
“We are really not in competition. We are partners in supporting the cocoa industry,” he noted. He explained that both countries continue to monitor the market and collaborate to ensure that farmers benefit from any future increases in global prices.
The minister shed light on the complex factors considered in determining the new cocoa price. “You cannot just take one price and use it in your calculations,” he explained. Market volatility, the cost of supporting cocoa farmers, and the operational activities of COCOBOD played a critical role in the price determination.
COCOBOD’s activities, including warehouse treatment, farmer support, and crop protection measures, were among the key considerations. Hon. Acheampong noted that COCOBOD has made significant efforts to aid farmers in replanting their crops and ensuring the quality of cocoa exports.
Despite facing challenges such as the current dry spells, Hon. Acheampong expressed optimism about Ghana’s cocoa output for the coming season.
He said the country has set a production target of 650,000 metric tons for the 2024/2025 season, a target that is consistent with the previous season.
Hon. Acheampong outlined the government’s proactive measures, including research and agronomic practices, to achieve this goal.
“We are praying that cocoa will escape the effects of this year’s dry spell, as its biology is different from crops like maize. We are employing tools to increase our numbers, and we remain hopeful,” he stated. The minister further highlighted that COCOBOD officials are actively assessing cocoa farms across the country, conducting cocoa pod counts to estimate expected yields and ensure accurate planning for the season.
