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The Voice of Cocoa

Cocoa CSOs Propose GHS838 As New Producer Price

The Ghana Civil-Society Cocoa Platform (GCCP) has called on the government to increase the producer price of cocoa to a minimum of GHS838 per bag.

The position of GCCP contained in a statement copied to Cocoa Post comes on the heels of heightened demand by cocoa farmers across the country for an increase in the farmgate price.

It said the figure was arrived at using the lowest projected values available including the LID of $400 per tonne, the current ICCO world cocoa market price of $2248 and an origin differential of $65 per tonne.

“Assuming COCOBOD gives all the 400$ LID to the farmer, that brings the farm gate price to 1,578$ per tonne for the 2022/2023 cocoa season.

Using the year-on-year Bank of Ghana (BoG) exchange rate of $8.5, cocoa farmers are expected to receive not less than GH13,413 per tonne of cocoa beans which should translate into a minimum of GHS838 per bag of cocoa beans,” said Obed Owusu-Adai, Co-coordinator of GCCP.

He said the GCCP is of the firm opinion that farmers in Ghana should be receiving a minimum of GHS838 ($98) per bag (62.5kg) of cocoa beans as the new producer price for the cocoa season commencing October 1, 2022.

The group further said it factored in issues like currency depreciation, inflation and the effects of the Russia-Ukraine war on supply chains in arriving at its conclusion.

Solution to galamsey is money

Reflecting on the illegal galamsey gold mining invasion of cocoa farms, the Ghana Civil-Society Cocoa Platform identified “money” as the key factor motivating cocoa farmers and landowners to give away their lands to miners.

“They do not feel that their efforts and toils are properly and fairly being compensated hence the alternative (even if not the best of decisions) is to cash in and move out of the cocoa space.”

According to GCCP, the situation is predominantly due to the uncompetitive cocoa prices on the international market which is reflected in the pockets of ordinary cocoa farmers in Ghana.

“The solution is to make the cocoa industry competitive by increasing the farm gate price to levels that are commensurate with the work farmers put into producing cocoa beans,” the GCCP recommended.

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