Ghana Increases Cocoa Farmgate Price By 58%, But Cocoa Farmers, Minority Pissed

• Ghana has increased the farmgate price paid to cocoa farmers by 58.26% following a third successive global deficit
• This follows the price of cocoa more than tripling on the international market over the last year
• However, farmers and the Minority in parliament are not pleased with the increase and are demanding more

The government of Ghana has increased the farmgate price paid to cocoa farmers by 58.26% to GH¢33,120 per tonne for the 2023/2024 crop season.

This follows the price of cocoa more than tripling on the international market over the last year due to disease and adverse weather in the two major exporters of the product, Ghana and Cote d’Ivoire.

This pushed the global market to a third successive deficit.

According to the government, the price increase, which took effect on April 5, 2024, would allow farmers to share profits from rising global prices and deter them from smuggling beans.

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Ghana’s state-guaranteed-cocoa price is GH¢20,943 cedi ($1,574.66) per tonne or about GH¢21 per kilogramme.

Minority and farmers reject the government's cocoa price

However, following the announcement of the new cocoa prices, the Minority in Parliament has registered their displeasure with them.

According to the Minority, the producer price of cocoa must be increased to improve the living conditions of the Ghanaian cocoa farmers living conditions.

In a press statement issued on April 2, the Asunafo South Member of Parliament, Eric Opoku, stated that the new farmgate price shortchanges the Ghanaian farmer.

He revealed that the world market price of cocoa has surged to US$10,000 per ton, equivalent to GH¢130,000.

He said this should have translated to GH¢8,125 per bag of cocoa on the international market.

According to him, this constitutes a paltry 25.47% of the world market price of cocoa despite President Akufo-Addo's earlier pledge to give farmers a minimum of 70% of the international market price.

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The Minority has served notice to haul the Agriculture Minister before Parliament to answer for the paltry sum.

Meanwhile, the Ghana National Cocoa Farmers Association has also rebuked the government’s farmgate price.

The association's president, Stephenson Anane Boateng, described the increment in a media interview as an insult to farmers and urged the government to increase the farm gate price.

They also demanded that COCOBOD stop withholding farmers’ money and give them their fair share of proceeds.

The government borrows money from cocoa traders

COCOBOD has borrowed $200 million from cocoa traders to finance bean purchases.

Anane Boateng, the president of the Ghana National Cocoa Farmers Association, expressed concerns about the issue to YEN.com.gh.

Parliament is expected to begin approval processes for the agreements on the $800 million syndicated loan this week.

Source: YEN.com.gh