Cocoa: New Producer Price Historic
– It’s highest payment ever in Ghana’s industry – COCOBOD
Story: Isaac AIDOO, Accra
THE Ghana Cocoa Board (COCOBOD) has touted major achievements in cocoa pricing, saying the historic producer price of GHS48,000 per tonne for the 2024/2025 cocoa crop season, marked the highest payment ever in Ghana’s cocoa farming history.
This represents a remarkable cumulative growth of 531.58% in producer prices since 2017, signalling a major victory for the country’s cocoa farmers.
The new price, which translates to $3,048 per tonne, reflects COCOBOD’s continued commitment to ensuring better returns for cocoa farmers. Over the past few years, the board has undertaken several strategic price adjustments in response to both global market conditions and government efforts to secure a more sustainable livelihood for the country’s 800,000 cocoa farmers.
During a press briefing in Accra, COCOBOD’s Chief Executive Officer, Joseph Boahene Aidoo, emphasized that the record-breaking price increase is a direct result of the government’s drive to enhance the welfare of cocoa farmers.
“This increase not only reflects current market realities but also highlights our unwavering commitment to securing fair and improved incomes for our hardworking cocoa farmers,”Aidoo said.
A Steady Climb: Year-on-Year Producer Price Increases
The journey towards the record GHS48,000 per tonne producer price began in the 2017/18 crop season, when COCOBOD set the price at GHS7,600 per tonne. At the time, global market volatility posed significant challenges to cocoa farming, but COCOBOD’s incremental increases ensured that farmers were shielded from the worst impacts of price fluctuations.
In the 2019-2020 crop season, COCOBOD increased the price by 8.4%, bringing it to GHS8,240 per tonne. This was followed by another major leap during the 2020-2021 season, when the government introduced the Living Income Differential (LID), which saw the price rise to GHS10,560 per tonne, representing a 28.2% increase.
The upward trend continued into the 2021-2022 crop season, where the price remained stable at GHS10,560 per tonne despite ongoing market fluctuations. However, the 2022-2023 season saw a significant boost in the producer price to GHS12,800 per tonne, a 21.2% increase designed to support farmers amidst rising inflation and operational costs.
The most dramatic price increase came in the 2023/2024 season when COCOBOD raised the producer price by 63.5%, from GHS12,800 to GHS20,928 per tonne. This bold move was a clear indication of the government’s commitment to ensuring cocoa farming remains viable in the face of increasing production costs and global market challenges.
A Historic Leap for 2024/2025
With the 2024/2025 crop season now set at GHS48,000 per tonne, COCOBOD has once again made history, delivering the highest producer price ever paid to cocoa farmers in Ghana. The unprecedented increase is expected to significantly boost the livelihoods of farmers, offering them better financial security and stability.
This latest price adjustment also positions Ghana as a competitive player in the global cocoa market, ensuring that its farmers are fairly compensated for their labor. The increase comes at a time when international cocoa prices have been volatile, but Ghana’s firm stance on fair compensation ensures that its farmers are not left behind.
Sustaining Ghana’s Cocoa Industry
Addressing the broader implications of the historic price increase, Joseph Boahene Aidoo noted that COCOBOD’s efforts extend beyond pricing. The board is also working to modernize the cocoa industry through various initiatives, including the introduction of high-yielding and disease-resistant cocoa varieties, better access to credit, and technical assistance for farmers to improve productivity.
He further stressed the importance of continued investment in the sector to ensure long-term sustainability. “This is not just about improving incomes for today; it’s about securing the future of cocoa farming for generations to come,” Aidoo stated.
The government has also indicated its intention to strengthen the cocoa value chain, enhancing local processing capacities to maximize returns and reduce dependency on raw cocoa bean exports.
Conclusion
The record-breaking producer price of GHS48,000 per tonne for the 2024/2025 cocoa season underscores Ghana’s commitment to supporting its cocoa farmers and ensuring their long-term prosperity.
With a 531.58% cumulative increase in prices since 2017, COCOBOD has demonstrated a sustained effort to improve the financial standing of farmers while securing Ghana’s place as one of the world’s leading cocoa producers. This historic achievement is not only a win for the farmers but a milestone for the entire cocoa sector, reflecting years of strategic planning and dedication to the betterment of the industry.
