The president of Ghana, Nana Addo Dankwa Akufo-Addo, is set to announce the new cocoa producer price for the 2020/21 season on Thursday 24th September 2020.
The producer price is the price at which the country’s cocoa sector regulator – Ghana Cocoa Board (COCOBOD) – buys the produce of cocoa farmers at the farmgate.
Public Affairs Manager of COCOBOD, Mr Fiifi Boafo, disclosed in a Facebook post that the President was due to making the big announcement at Sefwi Wiawso, the capital of the Western North region, a major cocoa-producing hub in Ghana.
The prevailing cocoa producer price for the 2019/20 season is GHS515 per 64kg bag of beans, which was an 8.42 percent increase over the GHS475 per bag in the 2018/19 season.
Living Income Differential (LID)
Beside announcing the 2020/21 producer price, President Akufo-Addo will also officially launch the historic Living Income Diffential (LID) bonus payment on every bag of cocoa purchased.
“For the first time in the history of Ghana, farmers will receive $25 more every bag of cocoa courtesy the introduction of Living Income Differential”, Mr Boafo noted.
Per the LID, cocoa farmers in Ghana and Ivory Coast will receive $25 or GHS145 ($1=GHS5.8 exchange rate) extra cash for every bag of cocoa they sell.
The amount is a direct payment of proceeds from a $400-per-tonne levy imposed on the terminal price of the commodity by Ghana and Ivory Coast in 2019, hoped to give cocoa farmers a decent income.
Per Ghana’s average output of 800,000 metric tonnes, an estimated total of $320 million in expected to be doled out directly to cocoa farmers this season.
$840 million will be available for payment to Ivorian cocoa farmers in LID bonus, going by the country’s production output of 2.1 million metric tonnes.