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Ghana Maintains Cocoa Producer Price, Down By 17.5% In Cote d’Ivoire

Ghana

Ghana’s government has maintained the cocoa producer price for the 2021/22 crop year at GH¢10,560 per metric tonne, translating to GH¢660 per bag (64kg) at the farmgate effective October 8, 2021.

“This price represents 87.15% of the FOB value…The price is the highest within the sub-region,” Chairman of the Producer Price Review Committee (PPRC), Dr. Owusu Afriyie Akoto, said.

Dr. Akoto, who is also the Minister for Food and Agriculture, indicated “this demonstrates Government’s commitment to sustain the interest of the cocoa farmer in producing cocoa and also to improve the well-being of cocoa farmers.”

COVID19 Challenges Lingers

He explained, the government had decided to maintain the 2020/21 price in spite of the fall in the world market price of cocoa due to the weighty challenge posed by the COVID19 pandemic.

We have maintained the producer price at Gh¢10,560 per tonne or Gh¢660 per bag of 64kg of cocoa translating into 87.15 % of the FOB value in line with our resolve to better the well-being of our cocoa farmers,” he said.

According to him, the country has maintained its cocoa producer price at a time when all cocoa-producing countries are contemplating a reduction in the wake of a slump in the terminal cocoa market as a result of the pandemic.

The PPRC has also approved new rates and fees for all other stakeholders in the supply chain, namely buyers’ margin, hauliers’ rate, warehousing, internal marketing among others.

Côte d’Ivoire lowers Farmgate Price

Meanwhile, Ghana’s western neighbour and the world’s leading producer of cocoa, Côte d’Ivoire, has announced its producer price for the ensuing 2021/22 crop year at 825 CFA francs (1.25 euro) per kilo, a drop of 17.5%, the Conseil du Cafe-Cacao announced Friday.

The country paid 1,000 CFA francs (1.52 euros) per kilo during the 2020/21 cocoa crop year which ended in September.

LID Implementation Continues

Officials in both Ghana and Côte d’Ivoire say the new farmgate prices include the full value of the $400 per ton Living Income Differential (LID) being implemented by the two countries.

“Through the Ghana-Côte d’Ivoire Initiative, we have continued to implement the Living Income Differential which is helping to improve the welfare of cocoa farmers in both countries,” Dr. Owusu Afriyie Akoto noted.

In Ghana, the implementation of the LID, beginning in the 2020/21 crop year, resulted in a historic 28% rise in cocoa producer price from GH¢515 per bag in the 2019/20 crop year to Gh¢660.

Ghana’s Agriculture Minister added, “it is significant to note that today, Cocoa farmers in Ghana and Côte d’Ivoire are better-off than their counterparts in other cocoa-producing countries as a result of this noble initiative.”

Expanded Interventions for Cocoa Farmers

Aside from the price, Cocoa farmers in Ghana are going to taste retirement benefits for the first in the century-and-half old industry commencing this cocoa year.

At the end of August this year, the cocoa sector regulator, Ghana Cocoa Board conducted a pilot registration under the Cocoa Farmers Pension Scheme for some 2,800 volunteer farmers.

The government assured it will continue the implementation of such interventions as mass spraying, pruning, farm rehabilitation among other productivity enhancement programmes to improve yields and earnings for farmers.

He said all is set for the smooth take-off of the new cocoa year.

“It is announced for the information of all cocoa farmers and other stakeholders that Cocobod has made available funds, jute sacks and related logistics for the smooth take-off of the 2021/22 Main Crop Season,” Dr Akoto emphasised.

Cocoa Day Message

In a related development, the Chief Executive of COCOBOD, Joseph Boahen Aidoo, has in his Cocoa Day message, commended cocoa farmers and stakeholders for “rallying behind Management of Ghana Cocoa Board for the progress made” in the previous year.

He assured farmers that the introduction of the Cocoa Farmers Pension Scheme and electronic weighing scales for the 2021/2022 crop year will further help farmers to enjoy value for money and their labour adding that the Productivity Enhancement Programmes (PEPs) of the Board will see significant improvement in terms of coverage and support services.

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